Anyone else heard this rumour?
Supposedly the King of Saudi Arabia told Obama while he was visiting that the US will now be required to pay for their oil in gold.
I personally think that this is a very bad idea for the US to deplete its monetary reserve to buy oil. IMHO I would rather bump domestic production and accelerate E85 production and try to wean the US off its dependence for foreign oil.
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The value of the dollar is pretty much depedent upon it being the oil trade currency. If that goes interesting things are going to happen.
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Anlushac11;4911737Supposedly the King of Saudi Arabia told Obama while he was visiting that the US will now be required to pay for their oil in gold.
I sure hope that's just rumor.
"I'd shush her zephyr." ~ Zephyr.
I can understand why the King would want Obama to pay in gold, because american currency is almost worthless...
How much gold does the US even have? Given the amount of oil the US uses it's doubtful they could pay that way for very long. Then what would the Saudis do? A lot of their wealth comes from the US. Would they give up that source of income just because the US runs out of gold or is unwilling to pay in gold?
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Plenty of other people willing to buy oil.
wow this sounds like its from the medieval ages, but gold, i mean that can run out, not like dollars, you just print more, but gold you have to mine more and make more.
wow this sounds like its from the medieval ages, but gold, i mean that can run out, not like dollars, you just print more, but gold you have to mine more and make more.
*blink* *blink* Eh I hope that was a joke.
Well never heard of this rumor before. If it's true, I don't want to see what a hit the dollar might get. But hopefully it's not tied to oil as much as it used to be. Too many other currencies are somewhat tied to it on some level or another.
wow this sounds like its from the medieval ages, but gold, i mean that can run out, not like dollars, you just print more, but gold you have to mine more and make more.
You do know that if you print more money each dollar begins losing its value, right? You do know that's why nobody's doing that as a fix to the current recession, right?
Mr. Pedantic;4912920You do know that's why nobody's doing that as a fix to the current recession, right?
Have you been following the economic situation at all?