The demise of the US$ ?

S

SirConcis

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If the world starts dealing oil in Euros this country is FUCKED! We think gas and plastic products are bad now..... screw the resession this country is in, we'll be in one of the biggest (if not the worst) depression this world has ever seen



Not quite. The price of oil is already implicitely priced in euros (or a medley of foreign currencies). When you hear about crude oil price increases, it is generally to compensate for the decrease of the USD so that the oil vendors continue to get the same value for each barrel. From a point of view outside of the USA, the price of oil has not need anywhere near the increases that the USA has seen.

If the oil were priced in euros, the quoted price would be more stable, and increases in the USA would continue at the same pace depending on value of the USD.

Note that in the middle east, many foreign workers are (especially construction workers) are going on strikle because they want to be paid in a different currency than USD. An indian worker paid in USD while working in Dubai would see a massive reduction in his pay due to devaluation of USD and would therefore be able to bring home a lot less money when he converts his pay back to indian roupies.
 

amhersthungboi

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. From a point of view outside of the USA, the price of oil has not need anywhere near the increases that the USA has seen.

Still damned high overseas. In Oz it is about $6/gallon right now (1.50/liter).

The perspective over here isn't necessarily that the Euro will become the new dominant currency, though I see that as a possibility. The Asia/Pacific markets (which are growing at a massive rate) is powered by two slumbering giants: China and India. If Beijing stops devaluing the yuan, we're screwed.

Personally, I like the idea of a Euro lead world economy than a China-led one (if the US is to lose dominance) ... just not sure if that will be how it pans out.