Price of Oil vs Value of dollar

[YuccaFlatsRanch]

There is some thinking that the falling oil prices are intended by those in power (not the pres and Congress) to bankrupt Iran and prevent war. So far last Thursday the Saudi's announced that they couldn't make it unless oil got back up to $80 a barrel at least. Also construction in Dubai of all the skyscrapers has stopped due to no money.

The big problem with this is when the Oil nations stop buying U.S. debt and the dollar crashes.

Get ready folks.

[RedneckPete]

If you are that worried about your money, buy Canadian dollars. Canada has loads of oil and doesn't have mountains of consumer debt being held by other nations.

Explain this to me though. If all these foreign countries were holding American debt, why is it that when American debt went bad, that it was the American banks that went boom?

Pete

[Paquebot]

The biggest oil exporter to the US isn't Saudi Arabia, it's Canada. Been that way for several years. Also, Dubai doesn't even crack the top 15 countries exporting to the US. We get more from Chad and Equatorial Guinea than from the UAE.

Martin

[texican]

The Iranian War, or as history will call it [if there's anyone left to write or read history], the Last War, is already on... both sides have jumped off the cliff... it can't be averted... The mullahs are appeasing their Moon god, which demands blood... the Jews, have collectively (at least in Israel) decided they won't willingly go to the death camps again... they'll protect themselves and destroy their enemies.

Cheap oil is a blessing, right now. I seriously need 500 or a 1000 gallons for LTR. Thankfully, the price is half of what it was a few months ago... and if the Middle East starts glowing, oil might be unobtainable, at any price.

[Pink_Carnation]

Originally Posted by RedneckPete

Explain this to me though. If all these foreign countries were holding American debt, why is it that when American debt went bad, that it was the American banks that went boom?

Pete

The debt they are holding is for the government....the bad debt that let the banks house of cards fall is mostly mortgages and consumer debt. However they are getting concerned that the debt will be worthless since the US has decided the way to deal with their problems is more debt and printing more money. They won't even publish the numbers of how much new money is being printed. Hitler wanted to destabilze governments with counterfit money and the US is just doing it with real money.

[plowjockey]

High dollar crude oil was just another specultive bubble that finally burst.

No one expected the price to drop so quickly. The Company I work has been in the oil business 60 years and is getting stung, by the quick price drops, versus contract prices paid.

Demand is the key part of supply and demand. Crude oil countries can control the supply, all they want, but is the demand is not there (which is is not), then they have to take it in the shorts also, which is exactly what is happening.

It's 1980 again, except the whole world is participating.

[RedneckPete]

Originally Posted by Pink_Carnation

The debt they are holding is for the government

How exactly do they intend to collect on this debt?

Pete

[YuccaFlatsRanch]

Oil down to $60.00.