The Palination -- http://www.thepalination.com
But let’s be frank and get down to the punch real quick. A few years ago, some Middle Eastern nations said that they did not want to use the American dollar vs. the cost of a bbl of oil and were only going to use the British sterling which has been done before. And this from the Independent was in interesting find and something I had but recently forgotten. Please click on link, but the emphasis is mine on this paragraph.
Per The Independent:
Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.
Opps, do these countries forget so quickly? I think so. By the way, this Independent article was published Oct. 6th, 2009. People ARE paying attention!
You will also not hear that in the news at this moment in time as the MSM will not bring it up to light. I have a link on how the “devaluation” of the world oil industry rates matter with actual graphs of how different exchanges do. But I want you to keep in mind this last paragraph in the study. Emphasis mine.
Middle Eastern Economic Survey:
V. Conclusions
Dollar depreciation reduces activities in upstream through different channels including increased cost, higher inflation rates, lower purchasing power, and lower return on investment. Dollar devaluation increases oil demand in countries with appreciated currencies because of an increase in purchasing power. It also increases the demand for gasoline in the US as Americans spend their summer vacations driving in the US. Large dollar devaluation reduces the supply of oil and increases the demand for oil. Therefore, oil prices will stay high for a longer period than analysts expect.
Three more conclusions are relevant to future research. Studies that focus on the elasticity of demand for oil must use oil prices denominated in national currencies, not in US dollars. Studies that focus on the relationship between energy prices and economic growth must use oil prices denominated in national currencies, not in US dollars. Finally, exchange rates may explain several issues in international energy markets that researchers have been not able to determine or agree on.
Interesting how the MSM also doesn’t talk about this either, yet Sarah Palin in a little over 3 paragraphs is showing the problem of the economic impact of our American Dollar and the impact on Americans. But does Obama care? No. And right now, those Nations (France, Japan, and a few Middle Eastern Countries) are saying they did not have this little "talk".
But how do we take care of this? Well Russia did some interesting things in 2003, which I don’t recommend any sane country do. What did they do you ask? Russia seized the oil companies across their Nation, and bankrupted them, and then used the oil revenue as well as the natural gas in which they sold to various nations and paid off ALL of their debt in about three years. I am not saying that we should do the same. But if we do more domestic oil production for our own use, it may help us, as in America, in the long run.
With the little bit of history that I have given you, the best defense is to be our own propietor and business. Pay back our debt to those countries we owe and become quiet and watch the others hawkishly. I am not talking Ron Paul shut the world out scenario. What I mean is watch and only talk when asked and not give opinion. The best defense against speaking out is to not speak at all.
So what do we do? That is the question that you need to answer yourself. I have given you some information that the normal American doesn't pay attention too or simply over looked. Now what you do with it or research on your own is all up to you.
What I recommend. Drill, Baby, Drill!
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