lol that is hilarious. we were thinking it was some jackass who did that trade yesterday. it is something i could see going down on a trading floor. money is different to traders when we are trading.
thank you for substantiating my point. read what the blogger, stephen gordon, says when responding to someone in the comments...
dude you're lost. I'm not going to take time to start from first principles with you to explain this.
well you posted a link that you said proved your point. within the link was a graph that confirmed what i was talking about. oil priced in US dollars is greater relative to the other major currencies...am i wrong? did i read the graph wrong? further the author of the blog stated that dollar weakness was a factor in dollar denominated oil strength. he said it wasn't a major factor like it has been made out to be by some but it was an aggrevating factor. where did i go wrong? also, in a previous article on oct.23 from the same site http://worthwhile.typepad.com/worthwhile_canadian_initi/2007/10/recent-oil-pric.html the author states... i'm not trying to argue with you on this but you didn't do anything that disproved what i was saying. all you've done is tell that i have no clue and then provided worthless evidence that did not back up your point. if you can post another link that explains your point then i will be more than happy to read that. trust me i don't mind being wrong...just show me something to help me understand where i am wrong.
dont waste your energy. texx will come back at you w/ a circular argument that will not discredit you nor prove his point....
In the quote you provided from my link, the guy says that "USD depreciation is far from being anywhere close to being an explanation for the rise in USD-denominated oil prices." How does that square with your earlier comment that oil price will drop if it's no longer denominated in USD? The article that I posted states that the currency denomination has little to do with it. If your post about the oil price dropping was referring to that "little bit", then I think you're overlooking the main driver of oil price - it ain't the currency denomination.
i understand the main causes for oil appreciation. i think those causes are much greater than the U.S. going into a very shallow recession (which probably won't even happen). hell, you have to think that oil prices are already discounting the U.S. going into recession. i guess we will find out the day we start getting recessionary numbers. only then will we know how much the energy markets have priced it in. anyhow, i should have been more precise when i said they will drop. i didn't mean that prices would crater but it would help put prices at a "truer" value. by that chart that ended on 11/20 it would seem that dollar denominated oil was "overpriced" by about 7+% relative to other currencies. if you go back to the other chart that ended on 10/23 then it looks that dollar oil was "overpriced" by 4.5% if you average the other 3 currencies. i can't imagine this disparity improving in the future since dollar weakness is likely to continue. this certainly isn't main factor in oil prices, but you can see by the link you posted that it is an "aggravating" factor like the blogger stated. do you know how this divergence has trended since 11/20? it would certainly be interesting to track. it would also be interesting to see this tracked over a longer historical time period. i would do it at work but i never trade currencies. i guess i could figure it out on the bloomberg terminal somehow. that thing has more information than god.
Why doesn't a president ask for $50 billion for alternative fuel research and production or for that matter education or health care. That is not a shot at Bush either, I really mean ANY president. I remember reading how many people doubted that we could reach the moon in the short time span that we did but the funds were there as there was a race with the U.S.S.R. to get that goal done. Now fuel, something that affects every citizen in every country, is getting way out of hand. Why not devote a large portion of funds to developing alternative ways to fuel cars, trucks, planes, etc. and get it done in a decade or so instead of scores?
to be fair, these oil prices have really only gotten "out of hand" in the last four years. Oil was trading at twenty dollars a barrel just in the clinton years.
This is not a job for the government to take on. This is a job for the much more efficient private sector. Oil companies are investing much more than $50 billion ANNUALLY to develop new and better ways to bring energy to the world.
Good grief you are clueless if you think Clinton's energy policy (btw he didn't have one) was responsible for low oil prices. His environmental and tax policy stances likely RAISED oil prices. Take a look at what worldwide demand has done in the last 4 years. Heck, just look at China. Take a look at what worldwide supply has done. There's your answer.
if the government was actually worth a damn then it could help lead the way. plus i think we will all agree that energy independence is a national security concern. it would be nice if our government had a man on the moon type project to give us the leadership to reach this goal much quicker. but that will never happen too much pandering to farmers and oil. the ethanol thing is what pisses me off the most. also, it would be nice if americans would get over their nuclear energy hang ups and realize that it is a great source of clean energy.
Why the hell would these oil companies spend money to develop alternative fuels. It costs them $5 dollars a barrel to pump out and then can sell it for a 100 .
Except the public sector is bearing the burden of this continued quest for oil with military force...which is measured in dollars spent on weapons and lives lost at war. Which, if the doomsday scenario you painted is right and we truly are running out of oil, is likely to only get worse...as nations around the globe position themselves for the remaining drops of oil they can squeeze out of the earth.
How so? The oil companies and cartel are bringing in record profits, no? If they are spending all of this money getting it out, transporting, processing it, then selling it how are they still bringing in record profits. It does not make sense, they spending all this money but somehow bringing in record profits.
