China lays path to make Yuan an international currency

[trog100]

As for the oil though, I think the price drop has more to do with supply and demand, speculation of the market and fear rather than the value of the currency it is bought in.

the "perceived" demand thow DC.. certainly not the actual usage of the stuff.. and however way its looked at all directly linked to the fake money factor....

the real demand for oil never shot up and it never dropped.. simply its perceived value as a tool to speculate on/with and make money.. the money to speculate with all of course being borrowed money..

i have had a thread running on this for several months on my cave forum..

Will the great depression start on Monday.. - Cave Central

trog

 

[dc2k08]

right now there is less demand for oil than there was 6 months ago as the recession has stopped a lot industries from operating at the same rate they were. We are also in the middle of winter in the northern hemisphere a time when people travel less. Also it is in the interest of oil companies to offer cheap oil during this time on the grounds that it might promote growth for all who use their product which is many. once an economic growth is achieved across the board or there is sufficient demand from other markets they will then be able to raise prices again to the level they were at (imo).

 

[Papa Lazarou]

This fella is very bearish on the outlook for the US (and hence the world) economy. It seems he is predicting all out hyper-inflation in the US (a-la Zimbabwe or post WWI Germany). Can anyone really see this happening? Market Skeptics: How Deflation Creates Hyperinflation

 

[trog100]

it should never have rocketed up to 150 dollars in the first place DC.. we might travel less in the winter but we burn more to keep warm..

if its purely governed by supply and demand or actual usage the price would be a lot more stable.. they say 60 dollars-ish is a sensible price.. but going up to 150 then down to 34 just shows something is way way wrong with the financial world.. actual usage demand couldnt possibly cause fluctuations like that over such a short time.. ..

the world has something thats called hot money.. where that money gets put governs the price of things.. it was in oil and other commodities.. now its in the dollar.. tomorrow it could be in gold.. all part of what i mean when i say nothing has a real value any more.. the real problem being no one knows where to put their hot money.. the other problem being the speed at which computers can move digital money.. the money people has hair trigger finger in times like this..

but trying to make sense of how it works aint easy.. he he

 

[dc2k08]

but trying to make sense of how it works aint easy.. he he

There are lots of factors, but I guess we can at least agree on that. we are after all purposely left out of the room and can only speculate through the keyhole.

Here's more News on the continuing movement away from the dollar from Aljazeera:

Gulf states agree on monetary union

Gulf Arab states will maintain their 2010 deadline for a single currency, the secretary-general of the Gulf Cooperation Council (GCC) has said.

Leaders of GCC countries (Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain) approved a final draft of an accord on a monetary union agreement in their annual summit in Muscat, the capital of Oman, on Tuesday.

The agreement would pave the way for a single currency, which all GCC states but Oman are working towards launching...

...The GCC nations are seeking better coordination on economic policies as the oil price has dropped and the global financial crisis has hit the region's economic boom

 

[dc2k08]

More News on this topic:

FT.com / Asia-Pacific - China calls for new reserve currency

Some good incite that is definitely worth a look here:

http://www.marketskeptics.com/2009/03/how-big-deal-is-loss-of-dollars-reserve.html

Implications of the loss of the dollar’s reserve status

As the dollar loses its reserves status, at least half of the world’s $5,385 billion dollar reserves will be sold off and replaced with other currencies (yuan, euro, khaleeji, gold, rand, etc…). The US, with its $71 foreign reserves, will not be able to do anything to counteract this mass exodus from the dollar. With outflows of this magnitude, the dollar’s value will collapse to a fraction of where it is now.