Why would it make any difference at all if oil is priced in Euros or US Dollars? It might make a psychological difference, which would wear off quickly. Would it mean that oil producers would only accept Euros as payment for their oil? No, you are simply changing the way the price is calculated. Right now the dollar weakens and the price of oil goes up. If you price oil in Euros, then the dollar weakens and the price of oil in Euros stays constant while the price of oil in terms of dollars goes up..... same as it does now.
it's a bit shortsighted to think that the world is being hurt by oil being priced in dollars. True, for this moment, OPEC countries would be getting a better price for their oil, but at the same time, European countries, who don't produce significant oil, are currently enjoying the greater oil purchasing power that the Euro gives them. This, no doubt, is driving some of the current oil spike, but don't think for a minute that OPEC is in any position to mandate that their product would be denominated in euros.
But as the dollar falls, oil does rise... They are cashing those dollars in for ANYTHING as fast as they can, IMO
Since Congress is in charge of money in the U.S., did Congress vote on the Amero? Haven't heard any of them or any Prez candidates talk about it yet.... Maybe the Republicans will in the upcoming Youtube debate!!!
bill schmidt is someone I used to know pretty well before I moved. he is an experienced observer of the market and he can make some absolutely outstanding calls. But, here he leaves out the critcial piece of logic. With the currency markets as deep as they are - why should we care if oil is priced in dollars. Also with some many transactions being done electronically - does the existence of the actually physical dollar really matter. Its the feds job to balance supply of dollars with their demand. (the paper) But in reality the economy is much mucha larger than that. So somone who has Euros wants to buys some oil. Some bank gives them a fill and sells dollars and take in Euros. Now the bank decides whether it wants to accumulate dollars or sell them. Big deal. Those decisions are made in the trillions every day. If oil goes to euros - is opec going to breathe a sigh of relief and say thank bush we don't have to sell our dollars in the currency market. Does it really matter? If it does explain it to me. Explain with facts that the Oil countries take in so many dollars they can not convert them to euros rather easily.
cant see what the big deal is... conversion is a mouse click away from dollars to euros..... bfd.....
I have read that it would be very difficult to go substantially away from the dollar as the spot standard pricing, such as Brent I believe, are all based on the dollar. These have been going on for years and the petromarket would need a great reason to switch now...