Hello and sorry. Well okay, not really too sorry. But I'm responding to a post you made in ColinMarshall's journal about oil and iraq, which has nothing (as far as I know) to do with DV cameras. So. I followed your links and thought you made some interesting points. Reading what you suggested was the first I've heard about effects of the transition, or perhaps, attempted transition from dollars to euros in the oil industry. I've been doing some browsing/research and was wondering if you could clarify a point for me. I'm not neccessarily economically minded, but I'm interested. The following excerpt from an article confused me and I was wondering if you could elucidate it for me, please:
"But the more dollars there are circulating outside the US, or invested by foreign owners in American assets, the more the rest of the world has had to provide the US with goods and services in exchange for these dollars. The dollars cost the US next to nothing to produce, so the fact that the world uses the currency in this way means that the US is importing vast quantities of goods and services virtually for free."
I've got another question. I hope you don't mind answering these. Perhaps you can suggest somewhere/someone else to direct any future questions to. That would be helpful. But for now, you're the person I've got in mind as the answer-person. Um. That sounded weird. It's late. I hope you'll forgive me. So, next things which confused me: " when the dollar falls relative to the other currencies, OPEC-member states receive smaller revenues in other currencies for their oil, causing substantial cuts in their purchasing power, because they continue to sell oil in the U.S. dollar."
I have a feeling this isn't too complicated, but I haven't been able to open up it's logic. Economics. Ugh. Tricky but fascinating. (okay maybe not that tricky, but tricky for me right now) Thanks again. --Josh
"But the more dollars there are circulating outside the US, or invested by foreign owners in American assets, the more the rest of the world has had to provide the US with goods and services in exchange for these dollars. The dollars cost the US next to nothing to produce, so the fact that the world uses the currency in this way means that the US is importing vast quantities of goods and services virtually for free."
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" when the dollar falls relative to the other currencies, OPEC-member states receive smaller revenues in other currencies for their oil, causing substantial cuts in their purchasing power, because they continue to sell oil in the U.S. dollar."
I have a feeling this isn't too complicated, but I haven't been able to open up it's logic. Economics. Ugh. Tricky but fascinating. (okay maybe not that tricky, but tricky for me right now)
Thanks again.
--Josh
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I'd be happy to share anything I know (just don't be dissappointed when you find out the extent of what I know).
Why don't we hop over here?
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