imaloon1
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Iran looking to stop accepting dollars as payment for its oil...
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Russia says that's cool and they'll uses Rubles and the other Russian currency instead...
Japan, China and India are also ok with this...
Do any of you Economics professors have any idea what this will do to us?
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Tych2
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Iran looking to stop accepting dollars as payment for its oil...
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How much oil do we get from Iran? Can't we just use other currency also?
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Manegarm
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Iran looking to stop accepting dollars as payment for its oil...
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The Euro is the obvious answer. 
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Ptilk
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Iran looking to stop accepting dollars as payment for its oil...
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It will make BT happy. Buy GOLD!!!!
The value of the dollar will drop by quite a bit, which should really help with our trade deficit situation and with domestic jobs. Sucks if you are rich though....so it probably wont happen.
They have been talking about this since 2007.
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Altra_Shadowstalker
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Iran looking to stop accepting dollars as payment for its oil...
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Oh Gosh. They're finally getting around to talking about it. Why did we let them use it in the first place?
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imaloon1
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Iran looking to stop accepting dollars as payment for its oil...
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Here's the thing,
The world's reserve currency is the dollar.
Iraq in 03 thought they could do the same thing only then they didn't have Russia saying that's no problem you can sell to us in Rubles and we'll honor the contracts. Russia/China/Japan et al said it was fine for us to kill Saddam because they bought the idea that at the time we sold them on that he was bad, doing bad things and it would be better if he was removed...
You can go all tinfoil all you want but all those countries profited by us allowing all those oil contract out onto the open market.
Unfortunately now they aren't supporting our idea to do the same thing in Iran, and honestly I don't think they ever intended to hence our incessant droning on about their nuclear weapons program...
Economically what this means "IMHO" is that if Iran does this and Russia says no problem along with China, India, and Japan who use those dollars to buy our debt and prop up our economy then what is outlined Here is a very real possibility.
Is it a certainty?
Maybe not but methinks the worm is about to turn in the good ole USA.
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imaloon1
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Iran looking to stop accepting dollars as payment for its oil...
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From the article for those who don't read a lot.
Iran swiftly countered planed US sanctions against its Central Bank yesterday by announcing that it will no longer accept the US Dollar as payment for its oil shipments to India, Japan and China, and further announced that bilateral trade between itself and Russia will, also, break from the US Dollar for settlement in favor of the Iranian Rial and Russian Rubles.
Think about that for a minute, or read the article I linked above.
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theredkay1
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Iran looking to stop accepting dollars as payment for its oil...
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It doesnt really mean anything.
You can already trade dollars for any other currency...so pricing oil in a different currency wont change anything.
edit - the linked article seems to throw around alot of hyperbole and allows the reader to pretend the dire tone is actually in the Russian report.
It also states that countries are forced to stockpile dollars in order to get oil. Obviously you can trade any form of currency for dollars so there is no need to stockpile dollars. Just like you dont need to stockpile 30 years worth of food and water because you can always trade for it later. If you want oil, there is zero incentive to buy US govt bonds...buying US bonds is a completely seperate decision. The connection between the two does not exist since there are currency markets.
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Ptilk
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We didn't let them trade in dollars, we forced them to trade in dollars via direct and open military threat if they did not.
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Altra_Shadowstalker
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Iran looking to stop accepting dollars as payment for its oil...
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I was being facetious, but my point is, we're in a cold war against Iran and have been for years. Why should we be surprised if our enemy is going to try to undermine us? Why haven't they done this sooner? We are choking their economy.
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Ptilk
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Iran looking to stop accepting dollars as payment for its oil...
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They haven't done it sooner because it's a futile gesture on their part that does nothing to help them, pisses off a big part of OPEC, and doesn't do much to harm the US economy.
It's more like a snub to DC than anything else. Of course, those idiots in Washington will bleat on and on about how they are telling us off and we need to make them pay.....meaning of course they get on TV saying it and a bunch of other people go make them pay.....and then pay the bills for making them pay.
It will ripple the markets a bit, gold and other commodity prices might jump for a while, and the stock market will panic as they always do....for a couple of days.
20 years ago it would have been a big deal, but the days where the US set world currency prices and exchange rates are far behind us. Currency prices will stabilize and all those countries that buy T bills will still keep buying them. Where else are they going to put their money? In Europe? 
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reesescups
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Iran looking to stop accepting dollars as payment for its oil...
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Tych2 posted:
How much oil do we get from Iran? Can't we just use other currency also?
Someone doesn't understand hegemony...
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imaloon1
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Iran looking to stop accepting dollars as payment for its oil...
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Ptilk posted:
They haven't done it sooner because it's a futile gesture on their part that does nothing to help them, pisses off a big part of OPEC, and doesn't do much to harm the US economy.
It's more like a snub to DC than anything else. Of course, those idiots in Washington will bleat on and on about how they are telling us off and we need to make them pay.....meaning of course they get on TV saying it and a bunch of other people go make them pay.....and then pay the bills for making them pay.
It will ripple the markets a bit, gold and other commodity prices might jump for a while, and the stock market will panic as they always do....for a couple of days.
20 years ago it would have been a big deal, but the days where the US set world currency prices and exchange rates are far behind us. Currency prices will stabilize and all those countries that buy T bills will still keep buying them. Where else are they going to put their money? In Europe?
I don't think you're fully factoring in what those countries will use as their debt instrument of choice if they can't buy their oil in dollars.
It means they don't need our treasuries or have any real use for our currency... (At least that's how I read it)
TO KAY: There are at least 10 other linked articles within that one article so you might want to actually look through those before being your usual dismissive self.
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theredkay1
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Iran looking to stop accepting dollars as payment for its oil...
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Oh, well if its on the internet I guess its correct.
edit - none of the links provide any support for the claims made in the article. They dont try to provide any causal relationship. Disaster is just presented as a statement of fact.
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Tych2
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Iran looking to stop accepting dollars as payment for its oil...
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reesescups posted:
Tych2 posted:
How much oil do we get from Iran? Can't we just use other currency also?
Someone doesn't understand hegemony...
Well we can't know everything. I have other areas of expertise. 
Although you failed to answer the questions I see.
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Yukishiro1
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Iran looking to stop accepting dollars as payment for its oil...
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Even assuming your doom and gloom is true (which it isn't) a cheaper dollar means less imports and more exports and more competitive manufacturing and more competitive American labor. 
Cheap shit from China would cost more, though.
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reesescups
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Iran looking to stop accepting dollars as payment for its oil...
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Also - Iranian oil bourse
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Ptilk
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Iran looking to stop accepting dollars as payment for its oil...
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They don't need our t-bills now.
If they just want cash in dollars, they can get them from any bank they want. You don't buy T-bills to buy oil, you buy T-bills because it's a safe haven for your money and you know you are going to get it back when you want it.
That wont change if some countries start buying some oil with other currency. It's a loss of prestige, not a loss of financial power. I know many people are convinced the US is broke, under impossible to pay debt, and doomed, but that is not the case. Not even fricken close.
T-bills are going to keep selling like hot cakes for a while yet. The only thing that would reduce their sale is a dramatic switch to austerity by the US Government. Not going to happen.
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Sgian_Dubh
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Iran looking to stop accepting dollars as payment for its oil...
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Yukishiro1 posted:
Even assuming your doom and gloom is true (which it isn't) a cheaper dollar means less imports and more exports and more competitive manufacturing and more competitive American labor.
Cheap shit from China would cost more, though.
I could see that being true if america had a manufacturing base, which it no longer does.
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Yukishiro1
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Iran looking to stop accepting dollars as payment for its oil...
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Sgian_Dubh posted:
Yukishiro1 posted:
Even assuming your doom and gloom is true (which it isn't) a cheaper dollar means less imports and more exports and more competitive manufacturing and more competitive American labor.
Cheap shit from China would cost more, though.
I could see that being true if america had a manufacturing base, which it no longer does.
Keep thinking that thought and you might eventually get somewhere....
I'll give you a hint: expensive dollar = less manufacturing, cheap dollar = ...
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imaloon1
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Maybe this is just phase 4 of the Bourse coming online?
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Ptilk
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You know why all those foreign car companies are building plants to build their cars all over the US?
Because it makes sense. It insulates them from fluctuations in the value of the dollar and gives them financially steady and constant access to the most affluent (and spending crazy) people on earth. It also gives them access to a huge, under valued labor force.
Foreign car companies are just the most noticeable companies to ramp up manufacturing their products in the US. Lower priced, and easier to transport, items are being built here by foreign companies as well. That will continue and if the dollar drops vs world currencies in a significant way...it will increase like crazy.
That's the good side of the drop in the value of US currency. The bad side is it will cost a shit ton more to travel and all the cheap stuff from other countries we buy at Walmart will cost more.
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Yukishiro1
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Iran looking to stop accepting dollars as payment for its oil...
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Ptilk posted:
The bad side is it will cost a shit ton more to travel
Yeah, that's the bad side. The dollar has lost like 25% of its value relative to the Yen in the past 5 years. Makes it expensive as crap to go visit.
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Brother_Tempus
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Iran looking to stop accepting dollars as payment for its oil...
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imaloon1 posted:
Russia says that's cool and they'll uses Rubles and the other Russian currency instead...
Japan, China and India are also ok with this...
Do any of you Economics professors have any idea what this will do to us?
Saddam Hussein did this as well. The US invaded shortly thereafter .... You extrapolate how important it is based on historical precedence along the existance of the term "Petrodollars"
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Brother_Tempus
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Iran looking to stop accepting dollars as payment for its oil...
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Ptilk posted:
You know why all those foreign car companies are building plants to build their cars all over the US
assembling, not building ... Big difference
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Sin_of_Onin
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Iran looking to stop accepting dollars as payment for its oil...
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The biggest threat of this change is the fact it is a change. Economic change is almost always negative at first. In the long run the US really needs to increase exports or we are screwed. Failure to increase exports to nations like Japan, India, and China are far bigger threats.
Germany has tried very hard to prevent the Euro from becoming a reserve currency because they want to remain net exporters.
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GrilledCheez
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Iran looking to stop accepting dollars as payment for its oil...
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I look forward to reading about this story another ten times in the next couple years without them actually doing it.
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sweeny_comodore
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Iran looking to stop accepting dollars as payment for its oil...
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Sgian_Dubh posted:
Yukishiro1 posted:
Even assuming your doom and gloom is true (which it isn't) a cheaper dollar means less imports and more exports and more competitive manufacturing and more competitive American labor.
Cheap shit from China would cost more, though.
I could see that being true if america had a manufacturing base, which it no longer does.
we have a huge manufacturing base if your needs are mindless paper pushers and idiot college kids
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Aerlinthian
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They should ask Libya how that worked out for them.
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smellymotor
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the US does actually have a pretty big manufacturing sector. one of the largest if not the largest in the world....
buncha clowns up in here
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