The dangers of Euro to the Dollar

Obviously short. Just have to time a bit. My bet is a topping in the markets in the next 5-7 trading days....

 

If I were living in the US I would fear Dick Cheney more than Osama Bin Laden. He's done more harm to the country than the terrorists could ever dream of doing. From what I can see he is only using Bush, Rumsfeld and others to achieve his goals.

With all due respect to the innocent lives lost, Osama only cost the US a few billion dollars by destroying a couple of 30 year old buildings. Cheney with his perverse idea of reshaping the Middle East has cost the country thousands of times that much by running the national debt up over 8 trillion!

We have lots of oil here in Canada to sell to the US and we certainly aren't going to go to war over it. There are around a trillion barrels of oil in the tar sands. Enough to last several generations. I read once that Cheney, even though he used to be an oil company CEO, had no idea up until a couple of years ago that Canada had that much oil. This is the same guy that is now making major policy decisions for the US. Cheney can't even manage his own shotgun, how can you trust him to manage the most powerful military organization on earth.

 

I always ponder if it is worthy or not to educate the ones not having the knowledge. No offense intended, but you know nothing aboit the oilproducing process.

"The Canadian Athabasca tar sands deposit has an estimated reserve production capacity of 750,000 barrels (150,000 m³) of crude oil per day using the current hot water processes."

The US is using almost 20 million barrels A DAY currently, so your unlimited supply for generations of oil from tarsand is sucked up by the American consumers in less than an HOUR.

Not to mention other problems like:

"It is estimated that around 80% of the Alberta tar sands are too far below the surface for the current open-pit mining technique."

But anyway, this thread was about the Euro vs. the dollar....

 

Actually the current oil sands production is in excess of 1 million barrels a day. However, I was writing about the total reserves, not the current "reserve production capacity".

If the US is using 20 million barrels a day, and there is about 1 trillion barrels in the Canadian tar sands, that would be about 135 years worth.

I agree that the current production is only a small fraction of the 20 million barrels that the US uses. However the US is spending over a billion dollars a day for the war in Iraq. Why not spend some of that money in Canada instead to increase the production of the tar sands.

 

not sure why he calls himself a republican.

 

True, they should exchange him for Lieberman.

 

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February 23, 2006

SouthAmerica: “The End of Dollar Hegemony” is a very good article by Ron Paul, but he left out some important points as follows:


1) Communism expanded after WW II and kept many countries out of the international financial markets until the collapse of the Soviet Union in 1991 - and the US economy was a major beneficiary of that unique situation.


2) After WW II European countries were flattened with everything in sight being destroyed during the war years. The US established the Marshall Plan to help in the reconstruction of Europe – that created a massive new market for US dollars in Europe – these US dollars held outside of the US by mostly European banks until the early 1970’s received the name of “Eurodollars.”

For obvious reasons the US dollar became an important world reserve currency since WW II.


3) The author said: “By 1979 interest rates of 21% were required to rescue the system.”


But interest rates became so high in the late 1970’s as a direct result of all the defense spending that had happened - related to years of financing the Vietnam War.


4) The author also said: “Most importantly, the dollar/oil relationship has to be maintained to keep the dollar as a preeminent currency. Any attack on this relationship will be forcefully challenged – as it already has been.”


In 2006, two oil producing countries come to mind that are in the process of switching their oil trades from the US dollar to Euros – Iran and Venezuela.

The US dollar is losing its clout in South America – with countries such as Brazil and Argentina paying off most of its debt denominated in US dollars.


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