US Dollar

[Peter for President]

I hadn't looked at this for a couple weeks (I usually glance at it once a day, but have been busy and out of town). I just looked at it today and it appears the dollar has been fairing its best in a long time over the past couple weeks. When I left, the conversion rate was approximately 1.58 Euro, 2.02 pound, .99 Canadian, and .95 Australian. Today it is at 1.49, 1.91, .93, and .88. While these numbers are far from great, it is very encouraging to see it move so much in the right direction in just a couple weeks. Usually when I glance at these numbers, they bounce up and down each day and it takes a couple consecutive days of decent negative or positive gains to make a cent difference.

http://www.x-rates.com/

[ignorant]

recession!

[Jiddy78]

Babylonianism is universal, so we may get a reprieve due to others' abilities...but we are quite good at it IMO...

[Peter for President]

Babylonianism is universal, so we may get a reprieve due to others' abilities...but we are quite good at it IMO...
What is babylonianism and how does it relate to this?

[Jiddy78]

What is babylonianism and how does it relate to this?

Buncha whores that don't want responsibility, don't intend to pay for what they take and, most importantly, in the process on not intending to pay, expect more and more and more and more for the same price...Nothing.

USA has a lot of 'em...Some of the best IMO...We do it long and strong...but we're not the only ones...thus maybe our currency has a chance...I'm betting on the world f*cking up more than us getting better at this point.

*crosses fingers*

[Vegas]

Buncha whores that don't want responsibility, don't intend to pay for what they take and, most importantly, in the process on not intending to pay, expect more and more and more and more for the same price...Nothing.

USA has a lot of 'em...Some of the best IMO...We do it long and strong...but we're not the only ones...thus maybe our currency has a chance...I'm betting on the world f*cking up more than us getting better at this point.

*crosses fingers*

Jiddy, did you ever read this book?

http://www.amazon.com/Parliament-Whores-Humorist-Attempts-Government/dp/0802139701

If you haven't read it you should. You'd love it.

[Jiddy78]

I wish I could read a book these days...The kid is a friggin tyrant.

[Vegas]

I wish I could read a book these days...The kid is a friggin tyrant.

Terrible twos?

[Jiddy78]

Terrible twos?

8 months...I can't wait til he can understand...Then I can put the fear into him.

Mua ha ha ha haaaa.

[Peter for President]

Gained on everyone listed today other than Canada.

[hannitykillspuppies]

oil fell again too. but it's supply and demand. not how strong or weak the dollar is.

[Peter for President]

oil fell again too. but it's supply and demand. not how strong or weak the dollar is.
Who has ever said that? Obviously the price of oil is going to be in part affected by what the dollar is worth.

[hannitykillspuppies]

Who has ever said that? Obviously the price of oil is going to be in part affected by what the dollar is worth.

no one that posts here that's for sure.

[ryr8828]

Who has ever said that? Obviously the price of oil is going to be in part affected by what the dollar is worth.

Asheylarry won't be happy until all of us admit that the worth of the dollar is the only factor.

[Peter for President]

Asheylarry won't be happy until all of us admit that the worth of the dollar is the only factor.

Its also obviously not the only factor.

[hannitykillspuppies]

Asheylarry won't be happy until all of us admit that the worth of the dollar is the only factor.
a claim i have never made.

[hannitykillspuppies]

Its also obviously not the only factor.it's the most significant.

[Vegas]

it's the most significant.

So why has oil gone up in price worldwide, not just here?

[abreu]

On Friday the dollar had its best day in 6 years.

Sadly, a big reason for it wasn't that our economy was surging. It's just that it wasn't sucking as bad as European economies.

[pnkpanther]

So why has oil gone up in price worldwide, not just here?

because oil is traded in US dollars and therefore linked to the dollar....

[hannitykillspuppies]

So why has oil gone up in price worldwide, not just here?
because oil is quoted in the us dollar.

[Peter for President]

because oil is quoted in the us dollar.So? If the dollar price drops by half, that means oil goes up double in dollars according to your theory. However, if the pound stays the same, that wouldn't increase the amount oil would cost in England.

Say oil is worth $50 a barrel and the pound is worth $2. Therefore, the oil would cost 25 pounds. The dollar drops by half, so oil is worth $100 and the pound is worth $4 at this point. However, the $100 barrel of oil would still be worth 25 pounds.

[pnkpanther]

So? If the dollar price drops by half, that means oil goes up double in dollars according to your theory. However, if the pound stays the same, that wouldn't increase the amount oil would cost in England.

Say oil is worth $50 a barrel and the pound is worth $2. Therefore, the oil would cost 25 pounds. The dollar drops by half, so oil is worth $100 and the pound is worth $4 at this point. However, the $100 barrel of oil would still be worth 25 pounds.


dollar dropped in half compared to what?

the euro? If it's in relation to the pound, your scenario makes no sense. It doesn't as it is, but what do I know.

Oil is traded in US dollars. To buy oil, you must obtain US dollars.

Oil isnt ONLY priced by the US dollar though. I dont know of anyone who's making that argument, here or elsewhere.

The only country that at one time didnt trade oil solely for US dollars, was Iraq, and that started in 2000, and you see how that turned out for them. Iran has threatened to start trading oil for Euro's has as venezuela. As of now, I dont think they do, they might though.

http://www.csmonitor.com/2008/0627/p03s01-usec.html

[Vegas]

because oil is traded in US dollars and therefore linked to the dollar....

You've got to be kidding me. It's quoted in dollars here, but in local currency elsewhere in the world. If you go by price in euros, prices are way up just like here.

[pnkpanther]

You've got to be kidding me. It's quoted in dollars here, but in local currency elsewhere in the world. If you go by price in euros, prices are way up just like here.


no, i am not. Oil is traded in US currency on the foreign market.

they may quote prices in their dollar so the populace understands, but they still trade for oil in US dollars on the market.

[abreu]

no, i am not. Oil is traded in US currency on the foreign market.

they may quote prices in their dollar so the populace understands, but they still trade for oil in US dollars on the market.
Correct

[Peter for President]

dollar dropped in half compared to what?

the euro? If it's in relation to the pound, your scenario makes no sense. It doesn't as it is, but what do I know.

Oil is traded in US dollars. To buy oil, you must obtain US dollars.

Oil isnt ONLY priced by the US dollar though. I dont know of anyone who's making that argument, here or elsewhere.

The only country that at one time didnt trade oil solely for US dollars, was Iraq, and that started in 2000, and you see how that turned out for them. Iran has threatened to start trading oil for Euro's has as venezuela. As of now, I dont think they do, they might though.

http://www.csmonitor.com/2008/0627/p03s01-usec.html
If that scenario doesn't make sense to you then I must just not be speaking clearly enough. Obviously the dollar was dropping by half compared to the pound in that scenario (as the math clearly points out). I didn't even mention the euro anywhere. And yes, it does add up correctly.

[Vegas]

no, i am not. Oil is traded in US currency on the foreign market.

they may quote prices in their dollar so the populace understands, but they still trade for oil in US dollars on the market.

So according to what you're saying, all someone in a foreign country has to do is exchange some of their currency for dollars and buy cheap gas when the dollar is low. Makes absolutely no sense.

[hannitykillspuppies]

You've got to be kidding me. It's quoted in dollars here, but in local currency elsewhere in the world. If you go by price in euros, prices are way up just like here.

it's quoted on the world market in us dollars.

[pnkpanther]

So according to what you're saying, all someone in a foreign country has to do is exchange some of their currency for dollars and buy cheap gas when the dollar is low. Makes absolutely no sense.

I'm not saying joe shmo at the gas pump pay's US dollar

Oil is traded on the commodity market. The bulk of that trading is done on the NYSE. It's done in US dollars.

In 2000 Iraq accepted euro. Starting in April, Iran announced they'll no longer trade Oil in US dollars.

http://en.wikipedia.org/wiki/Reserve_currency

[pnkpanther]

http://www.foxbusiness.com/story/markets/industries/utilities/oil-commodities-slip-dollar-strengthens/

[Vegas]

I'm not saying joe shmo at the gas pump pay's US dollar

Oil is traded on the commodity market. The bulk of that trading is done on the NYSE. It's done in US dollars.

In 2000 Iraq accepted euro. Starting in April, Iran announced they'll no longer trade Oil in US dollars.

http://en.wikipedia.org/wiki/Reserve_currency

Commodities are traded on the NYSE? Ever heard of the Chicago Board of Trade?

And you're really missing the point. Joe Shmo in every foreign country is paying higher prices for gas just like we are regardless of what currency he uses. It's a result of increased worldwide demand.

[hannitykillspuppies]

Commodities are traded on the NYSE? Ever heard of the Chicago Board of Trade?

And you're really missing the point. Joe Shmo in every foreign country is paying higher prices for gas just like we are regardless of what currency he uses. It's a result of increased worldwide demand.he said the bulk of oil commodity trading was done on nyse.

[hannitykillspuppies]

Commodities are traded on the NYSE? Ever heard of the Chicago Board of Trade?

And you're really missing the point. Joe Shmo in every foreign country is paying higher prices for gas just like we are regardless of what currency he uses. It's a result of increased worldwide demand.
you keep believing that.

[pnkpanther]

Commodities are traded on the NYSE? Ever heard of the Chicago Board of Trade?

And you're really missing the point. Joe Shmo in every foreign country is paying higher prices for gas just like we are regardless of what currency he uses. It's a result of increased worldwide demand.

that's true, that doesnt mean dollar doesnt effect it. Oil is up world wide, as there are other factors. But it is tied to value of the dollar. Why Oil moves as the dollar moves. Dollar weakens, makes it cheaper for foreign countries..they're still paying higher then they used to, but in that terms...

I was thinking faster then I typed

I meant New York Mercantile Exchange, which is where bulk of sweet crude oil is traded.

and if Oil wasn't traded in US dollars on Foreign Markets, why is it so news worthy when Iraq went away from US dollar in 2000, Iran threatens it, and Venezeula threatens too?

[pnkpanther]

http://www.nymex.com/lsco_pre_agree.aspx

[hannitykillspuppies]

So? If the dollar price drops by half, that means oil goes up double in dollars according to your theory. However, if the pound stays the same, that wouldn't increase the amount oil would cost in England.

Say oil is worth $50 a barrel and the pound is worth $2. Therefore, the oil would cost 25 pounds. The dollar drops by half, so oil is worth $100 and the pound is worth $4 at this point. However, the $100 barrel of oil would still be worth 25 pounds.

so we're to assume that the increase/decrease in the price of oil in us is equally correlated to the fx rate of the usd:gbp?

[pnkpanther]

oh, and the CBOT deals in grains, precious metals, and interest rate futures.

No oil....

soybean oil...

not crude oil

http://www.cbot.com/cbot/pub/page/0,3181,759,00.html

[Peter for President]

so we're to assume that the increase/decrease in the price of oil in us is equally correlated to the fx rate of the usd:gbp?
Absolutely not. I used as simple as math possible to describe my point. My point had nothing to do with how oil actually moves up or down in price, it simply showed that the dollar getting weaker doesn't make oil more expensive or cheaper for other countries (assuming the transaction takes place all in current conversion rates).

[pnkpanther]

Absolutely not. I used as simple as math possible to describe my point. My point had nothing to do with how oil actually moves up or down in price, it simply showed that the dollar getting weaker doesn't make oil more expensive or cheaper for other countries (assuming the transaction takes place all in current conversion rates).

"weaker" to what.

in you're scenario the dollar cant get weaker while pound remains the same...in your analogy, situation only makes sense if the dollar gets weaker in terms of the pound....

you need a benchmark currency, and if pound stayed in relation to US dollar, that means they have both fallen in relation to benchmark currency (which you neglected to give)

simple math or no....

[LSU]

The way I look at this "simple math" is this.


If the pound and the dollar are equal (1 pound = 1 dollar), and oil costs $100 a barrel, then it also costs 100 pounds.

But if 1 pound = 70 cents, and oil is $100 a barrel, then 70 pounds buys a barrel.

And if the price of oil went up to $130 a barrel, then the US pays $130 a barrel, but the brits pay 91 pounds.

If the price of oil stays the same and the dollar loses strength to 1 pound = 50 cents, then the Brits pay 65 pounds for $130/barrel oil, but the US is still paying $130.

So if the dollar weakens relative to other currencies, how is the price going up equally across the world?


Am I missing something? Is my math wrong (I did it pretty quickly, so it could be).

[pnkpanther]

The way I look at this "simple math" is this.


If the pound and the dollar are equal (1 pound = 1 dollar), and oil costs $100 a barrel, then it also costs 100 pounds.

But if 1 pound = 70 cents, and oil is $100 a barrel, then 70 pounds buys a barrel.

And if the price of oil went up to $130 a barrel, then the US pays $130 a barrel, but the brits pay 91 pounds.

If the price of oil stays the same and the dollar loses strength to 1 pound = 50 cents, then the Brits pay 65 pounds for $130/barrel oil, but the US is still paying $130.

So if the dollar weakens relative to other currencies, how is the price going up equally across the world?


Am I missing something? Is my math wrong (I did it pretty quickly, so it could be).

that would be correct.

[Peter for President]

"weaker" to what.

in you're scenario the dollar cant get weaker while pound remains the same...in your analogy, situation only makes sense if the dollar gets weaker in terms of the pound....

you need a benchmark currency, and if pound stayed in relation to US dollar, that means they have both fallen in relation to benchmark currency (which you neglected to give)

simple math or no....
I guess I must have not been clear enough. The bench mark in my example was the pound. The pound stayed the same while the dollar went down by half (as compared to the pound, i.e. became worth .25 pounds instead of .5 pounds). It seems quite clearly worded to me, but maybe not to others.

Say oil is worth $50 a barrel and the pound is worth $2 (this is where the two currencies start in this example). Therefore, the oil would cost 25 pounds. The dollar drops by half, so oil is worth $100 and the pound is worth $4 at this point (the benchmark pound is still worth the same as it started, the dollar drops by half at this point in relation to the pound, making the pound worth $4 instead of $2). However, the $100 barrel of oil would still be worth 25 pounds.This is about as clear as I can make my point, so hopefully you can understand it now, because it seems as though you get the jist of what I'm trying to say. You just don't appear to realize that we are basically on the same page (at least that is how I'm taking what you're saying).

[Vegas]

oh, and the CBOT deals in grains, precious metals, and interest rate futures.

No oil....

soybean oil...

not crude oil

http://www.cbot.com/cbot/pub/page/0,3181,759,00.html

I brought them up because you said the bulk of commodity trades were done on the NYSE.

[Vegas]

that would be correct.

Yes it is correct. So how about if you now tell us how a weak dollar makes oil more expensive in Europe.

[pnkpanther]

I brought them up because you said the bulk of commodity trades were done on the NYSE.

but you were incorrect by suggesting it was traded on CBOT, which it in fact is not. If you're going to be smart ass and point out my mistake (and rightfully so) at least be correct :cool:

[pnkpanther]

Yes it is correct. So how about if you now tell us how a weak dollar makes oil more expensive in Europe.

when the dollar is weak, exports rise, yes? because they're cheaper for foreign investors?

cost of traveling abroad has risen for most Travelers.

[Vegas]

when the dollar is weak, exports rise, yes? because they're cheaper for foreign investors?

cost of traveling abroad has risen for most Travelers.

Neither of those answer the question of how a weak dollar makes oil more expensive in foreign countries.

[pnkpanther]

Yes it is correct. So how about if you now tell us how a weak dollar makes oil more expensive in Europe.

there are other factors, it is cheaper in relation to it is in USA, but overall has gone up.

There are other factors, and no one is disagreeing, but weaker dollar rises costs for the US at a higher pace the foreign countries.

Europe and Britian tax oil/gas MUCH more then the US as well.

I'm not sure why this concept is so hard to understand.

if anyone is suggesting that the dollar is the only reason, they're wrong. But it is a major factor.

I feel I'm wasting my breath, much like the .9% GDP Growth/2.7 infaltion rate. The fact that China/Japan hold a lot of US currency proping up the Value.

[Vegas]

there are other factors, it is cheaper in relation to it is in USA, but overall has gone up.

There are other factors, and no one is disagreeing, but weaker dollar rises costs for the US at a higher pace the foreign countries.

Europe and Britian tax oil/gas MUCH more then the US as well.

I'm not sure why this concept is so hard to understand.

if anyone is suggesting that the dollar is the only reason, they're wrong. But it is a major factor.

I feel I'm wasting my breath, much like the .9% GDP Growth/2.7 infaltion rate. The fact that China/Japan hold a lot of US currency proping up the Value.

A weaker dollar will most certainly make commodities prices higher in the USA. I don't dispute that. But in the case of oil, the price has skyrocketed worldwide. It's the same with copper. The price has skyrocketed worldwide. And it's due to increased demand. Fluctuations in currency exchange rates don't by themselves make worldwide prices of commodities go up. I don't know why that's hard to understand.

[pnkpanther]

Neither of those answer the question of how a weak dollar makes oil more expensive in foreign countries.

http://www.thestreet.com/s/oil-slides-as-dollar-rallies/markets/energy/10432519.html?puc=googlen&cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

why does oil fall and rise inversely related to the dollar then?

because oil is purchased with US dollars. If more US dollars are required to buy oil, oil goes up.

Supply and demand effect it, China's demand is on the rise, as is most of south east asia, this will effect europe.

in relation to the US, Europe is able to buy Oil cheaper then US as their currency is stronger

these arent mutually exclusive. Oil can rise AND dollar can weaken..making Oil more expensive for the US, cheaper for Europe in relation to US, but still up...

[pnkpanther]

A weaker dollar will most certainly make commodities prices higher in the USA. I don't dispute that. But in the case of oil, the price has skyrocketed worldwide. It's the same with copper. The price has skyrocketed worldwide. And it's due to increased demand. Fluctuations in currency exchange rates don't by themselves make worldwide prices of commodities go up. I don't know why that's hard to understand.


yes, that is correct.

if you're not denying that a weak dollar is a factor, what is the debate?

[Vegas]

http://www.thestreet.com/s/oil-slides-as-dollar-rallies/markets/energy/10432519.html?puc=googlen&cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

why does oil fall and rise inversely related to the dollar then?

because oil is purchased with US dollars. If more US dollars are required to buy oil, oil goes up.

Supply and demand effect it, China's demand is on the rise, as is most of south east asia, this will effect europe.

in relation to the US, Europe is able to buy Oil cheaper then US as their currency is stronger

these arent mutually exclusive. Oil can rise AND dollar can weaken..making Oil more expensive for the US, cheaper for Europe in relation to US, but still up...

OK. But my point was and still is that the biggest reason for the increase in oil prices worldwide is increased demand. When someone tries to blame the whole thing on a weaker dollar, they're ignoring the fact that prices have gone up worldwide exactly as predicted by the most fundamental rules of economics.

[LSU]

A weaker dollar will most certainly make commodities prices higher in the USA. I don't dispute that. But in the case of oil, the price has skyrocketed worldwide. It's the same with copper. The price has skyrocketed worldwide. And it's due to increased demand. Fluctuations in currency exchange rates don't by themselves make worldwide prices of commodities go up. I don't know why that's hard to understand.


So, in other words, you and Pnk agree that the strength of the dollar has an impact, but is in now way the only factor. Yet you're also both too pigheaded to admit that you agree with each other and you'd rather pick out the minutiae of how each other are wrong rather than accept that the overall concept is generally agreed upon.

[Vegas]

yes, that is correct.

if you're not denying that a weak dollar is a factor, what is the debate?

The debate is that ashey keeps saying that the big factor is the weak dollar. If that were true, prices would have been stable in Europe, which is hardly the case.

[LSU]

OK. But my point was and still is that the biggest reason for the increase in oil prices worldwide is increased demand. When someone tries to blame the whole thing on a weaker dollar, they're ignoring the fact that prices have gone up worldwide exactly as predicted by the most fundamental rules of economics.



I think a lot of the confusion could be avoided if you'd direct that at those that are actually saying that it's the only factor then. Because Pnk hasn't.

[LSU]

The debate is that ashey keeps saying that the big factor is the weak dollar. If that were true, prices would have been stable in Europe, which is hardly the case.



Well there ya go.

[Vegas]

I think a lot of the confusion could be avoided if you'd direct that at those that are actually saying that it's the only factor then. Because Pnk hasn't.

Check out post #20 in this thread. He blamed a weak dollar in response to my question about worldwide oil prices.

[pnkpanther]

Check out post #20 in this thread. He blamed a weak dollar in response to my question about worldwide oil prices.

post 20

paraphrase

Because oil is linked to the US dollar because it is traded in the US dollar


Which, is correct.

we're more or less on same page, as LSU has pointed out. I have not denied other factors at work. Oil is unstable in Europe, that is correct.

US dollar is the most used currency in the global market, when it is unstable, it will have global effects.

[pnkpanther]

because oil is traded in US dollars and therefore linked to the dollar....

so one sentence is me blaming solely the US dollar??????

[pnkpanther]

So, in other words, you and Pnk agree that the strength of the dollar has an impact, but is in now way the only factor. Yet you're also both too pigheaded to admit that you agree with each other and you'd rather pick out the minutiae of how each other are wrong rather than accept that the overall concept is generally agreed upon.

thats about right.



and Vegas was wrong on CBOT ;)

[Vegas]

post 20

paraphrase

Because oil is linked to the US dollar because it is traded in the US dollar


Which, is correct.

we're more or less on same page, as LSU has pointed out. I have not denied other factors at work. Oil is unstable in Europe, that is correct.

US dollar is the most used currency in the global market, when it is unstable, it will have global effects.

That's not what you said. I asked why prices went up worldwide and you said it was because of a weaker dollar. But later you said that currency exchange rates make the weaker dollar not a factor in a foreign country whose currency isn't devalued.

[Vegas]

so one sentence is me blaming solely the US dollar??????

It's what you said.

[pnkpanther]

It's what you said.

I said the two were linked, which they are.

not, it's the only reason
the main reason

just that, they are in fact, linked.

[Vegas]

thats about right.



and Vegas was wrong on CBOT ;)

Give yourself a high five even though I wasn't wrong.

[pnkpanther]

Give yourself a high five even though I wasn't wrong.

so Oil is traded on the CBOT?

[pnkpanther]

http://www.nymex.com/lsco_pre_agree.aspx

from said link

Crude oil is the world's most actively traded commodity, and the NYMEX Division light, sweet crude oil futures contract is the world's most liquid forum for crude oil trading, as well as the world's largest-volume futures contract trading on a physical commodity. Because of its excellent liquidity and price transparency, the contract is used as a principal international pricing benchmark. Additional risk management and trading opportunities are offered through options on the futures contract; calendar spread options; crack spread options on the pricing differential of heating oil futures and crude oil futures and gasoline futures and crude oil futures; and average price options.

[Vegas]

so Oil is traded on the CBOT?

I never said it was or wasn't.

[hannitykillspuppies]

The debate is that ashey keeps saying that the big factor is the weak dollar. If that were true, prices would have been stable in Europe, which is hardly the case.

how would they be stable if it requires more us dollars to purchase oil?

[hannitykillspuppies]

Give yourself a high five even though I wasn't wrong.

yes you were. you implied oil commodities were traded on the cbot.

[Vegas]

how would they be stable if it requires more us dollars to purchase oil?

I can't believe I'm even answering this.

Because they can buy more dollars for fewer Euros when the dollar is weaker.

[hannitykillspuppies]

I never said it was or wasn't.
why the hell else would you bring up the cbot?

[Vegas]

why the hell else would you bring up the cbot?

Because he said that the bulk of commodity trades are done on the NYSE, which is not true.

[hannitykillspuppies]

I can't believe I'm even answering this.

Because they can buy more dollars for fewer Euros when the dollar is weaker.
if the dollar weakens against the euro.

[pnkpanther]

I never said it was or wasn't.

then why mention CBOT in discussion of where Oil is traded

especially when using it in pointing out my mistake of saying the NYSE?

[hannitykillspuppies]

Because he said that the bulk of commodity trades are done on the NYSE, which is not true.he clearly stated oil commodities. and you asked if he had ever heard of the cbot where oil commodities are also not traded.

[Vegas]

then why mention CBOT in discussion of where Oil is traded

especially when using it in pointing out my mistake of saying the NYSE?

Because you said bulk of commodity trades.

[pnkpanther]

It's what you said.

no it's not.

I posted what I said.

you're using assumptions

[hannitykillspuppies]

for as looney as ibc was he was right about one thing, vegas can never admit to being wrong about anything no matter how miniscule.

[Vegas]

no it's not.

I posted what I said.

you're using assumptions

Go ahead and give yourself another high five. It will probably make you feel better.

[hannitykillspuppies]

Because you said bulk of commodity trades.he said the bulk of oil commodities trades.

[pnkpanther]

Because you said bulk of commodity trades.

in reference to oil....

why mention CBOT in reference to Oil when CBOT doesnt deal in Oil

I was thinking NYME (yes the symbol) and typed out out symb ol for "new york stock exchange"

why not correct me with where Oil is traded..that would be logical.

[hannitykillspuppies]

I'm not saying joe shmo at the gas pump pay's US dollar

Oil is traded on the commodity market. The bulk of that trading is done on the NYSE. It's done in US dollars.

In 2000 Iraq accepted euro. Starting in April, Iran announced they'll no longer trade Oil in US dollars.

http://en.wikipedia.org/wiki/Reserve_currency

that is clearly not in reference to all commodities trading.

[Vegas]

in reference to oil....

why mention CBOT in reference to Oil when CBOT doesnt deal in Oil

I was thinking NYME (yes the symbol) and typed out out "new york stock exchange"

why not correct me with where Oil is traded..that would be logical.

Oil is traded on the commodity market. The bulk of that trading is done on the NYSE. It's done in US dollars.

Maybe I didn't get this the way you meant. I read that oil is traded in the commodity market. And the bulk of commodity trading is done on the NYSE.

If you were referring to oil future trades only, then give yourself a few more high fives. But I'm still not wrong.

[pnkpanther]

I'll sum up my points. I admittley have been rather eratic in posting and scattered.

Oil is traded in US dollars on the global market. By in large at least.

US Currency is largest traded currency and largest currency held in reserve by foreign markets. When countries borrow dollars, they borrow in US currency. See my post with the Currency Reserve link

When a commodity, such as oil, is tied to US Currency, and that currency becomes unstable, the price of said commodity will be unstable, globally as well.

The US currency/Economy is global.

Oil pricing is not regulated solely on Supply and Demand, you're paying what people are speculating supply and demand will be. When this concept suits your argument (oil dropped cause bush opened off shore drilling increasing future supply) you use it. When it doesnt, you do not.

People are investing in Oil, and hedging against US inflation by buying oil futures. This is happening on global scale.

so yes, due to the fact that oil is traded in US dollars, the US Dollar is largest used currency in the world, investors speculate in oil based on the US dollar, a weak dollar will globally raise the price of gas.

this is why there has been some who wanted Oil moved to exchange in the Euro and why it was such a big deal that Iraq stopped taking US dollars and why Venezuela and Iran threaten to stop trading in US dollars.....because thats how its done currently.

[Vegas]

so yes, due to the fact that oil is traded in US dollars, the US Dollar is largest used currency in the world, investors speculate in oil based on the US dollar, a weak dollar will globally raise the price of gas.



A weak dollar will increase the price of gas here. It won't raise the price of gas worldwide. Would you agree with that?

[hannitykillspuppies]

A weak dollar will increase the price of gas here. It won't raise the price of gas worldwide. Would you agree with that?no because a weak dollar increases the price of a barrel. you're like peter assuming there is a perfect correlation between the increase in the price of a barrel and the fluctuation of fx rates of usd:any other currency.

[Peter for President]

no because a weak dollar increases the price of a barrel. you're like peter assuming there is a perfect correlation between the increase in the price of a barrel and the fluctuation of fx rates of usd:any other currency.
You are simply off on this one.

[hannitykillspuppies]

You are simply off on this one.yeah that's it.

[Peter for President]

yeah that's it.
Glad to see you can admit it for once.

[Peter for President]

On a roll......

EUR/USD +0.067 %
CAD/USD +0.160 %
AUD/USD +0.946 %
GBP/USD +1.729 %

The pound is suddenly down to 1.86, which still isn't good, but its the best it has been in a long time. http://www.x-rates.com/d/GBP/USD/graph120.html

[hannitykillspuppies]

Glad to see you can admit it for once.
sarcasm aside, i never have a problem admitting i am wrong. unlike others here.

[Peter for President]

The big two are still trickling down. Five more cents on the pound since I first mentioned this. A couple more on the Euro.

GBP 1.86029

CAD 0.940999

EUR 1.47009

AUD 0.871201

[Peter for President]

I hadn't looked at this for a couple weeks (I usually glance at it once a day, but have been busy and out of town). I just looked at it today and it appears the dollar has been fairing its best in a long time over the past couple weeks. When I left, the conversion rate was approximately 1.58 Euro, 2.02 pound, .99 Canadian, and .95 Australian. Today it is at 1.49, 1.91, .93, and .88. While these numbers are far from great, it is very encouraging to see it move so much in the right direction in just a couple weeks. Usually when I glance at these numbers, they bounce up and down each day and it takes a couple consecutive days of decent negative or positive gains to make a cent difference.

http://www.x-rates.com/
Almost a month later and:

Pound: 1.75
Euro: 1.41
Canadian: .93
Australian: .81

Three of the four have moved quite significantly in that time.

[Jiddy78]

Almost a month later and:

Pound: 1.75
Euro: 1.41
Canadian: .93
Australian: .81

Three of the four have moved quite significantly in that time.

Now where's that hot dog dance again....

[Peter for President]

Hadn't updated it in a while, the dollar dropped vs everything for a bit but now is at long time bests (or very close) against everything major listed except the yen.

GBP
1.76549

CAD
0.928591

EUR
1.3854

AUD
0.777

[Peter for President]

Hadn't updated it in a while, the dollar dropped vs everything for a bit but now is at long time bests (or very close) against everything major listed except the yen.

GBP
1.76549

CAD
0.928591

EUR
1.3854

AUD
0.777
Wow. The rest of the world's economy is doing worse than ours right now other than Japan.

EUR/USD +2.280 %
CAD/USD +1.960 %
JPY/USD -4.255 %
AUD/USD +8.559 %
GBP/USD +2.071 %

I've never seen one even close to that 8.559% before.

Pound 1.73
Euro 1.35 (lowest in forever)
Canadian .90
Australian .71 (lowest I've seen, it was up to as high as .98 on July 15)

[ignorant]

but it is all the fault of the US.

Who cares if gas prices are higher in other countries, the US is to blame for everything wrong in the world.

[Peter for President]

Wow. The rest of the world's economy is doing worse than ours right now other than Japan.

EUR/USD +2.280 %
CAD/USD +1.960 %
JPY/USD -4.255 %
AUD/USD +8.559 %
GBP/USD +2.071 %

I've never seen one even close to that 8.559% before.

Pound 1.73
Euro 1.35 (lowest in forever)
Canadian .90
Australian .71 (lowest I've seen, it was up to as high as .98 on July 15)
It continues. Apparently it could be much worse than what we're seeing here.

Pound 1.61
Euro 1.28
Canadian 0.80
Australian 0.67

[Jiddy78]

It continues. Apparently it could be much worse than what we're seeing here.

Pound 1.61
Euro 1.28
Canadian 0.80
Australian 0.67

Time to go to Europe again. :)

[Peter for President]

Time to go to Europe again. :)
Personally I think Australia sounds fun. Especially when you consider that Australian women tend to love American guys.

[hannitykillspuppies]

Wow. The rest of the world's economy is doing worse than ours right now other than Japan.

EUR/USD +2.280 %
CAD/USD +1.960 %
JPY/USD -4.255 %
AUD/USD +8.559 %
GBP/USD +2.071 %

I've never seen one even close to that 8.559% before.

Pound 1.73
Euro 1.35 (lowest in forever)
Canadian .90
Australian .71 (lowest I've seen, it was up to as high as .98 on July 15)
and oil is down to 67 a barrell. coincidence?

[Peter for President]

and oil is down to 67 a barrell. coincidence?
Obviously not entirely.

[Hotpapa666]

The Yen has rebounded against the dollar and is right about 100 to 1 (which is very strong given the five year history.

[Roy Munson]

Time to go to Europe again. :)
If only flights weren't so expensive I'd be going in December...

[Jiddy78]

If only flights weren't so expensive I'd be going in December...

Go. Don't wait...Go.

Trust me.

$500 extra bucks don't mean sh*t. Just don't go spending nutso on the rest and you'll be fine.

[ignorant]

Go. Don't wait...Go.

Trust me.

$500 extra bucks don't mean sh*t. Just don't go spending nutso on the rest and you'll be fine.

my cousin is in Ireland for a couple months and i would consider going over there for a few weeks next year to see what it is all about.

Instead I am going to Mexico with some friends. I should rethink this.

[Peter for President]

Australia must really be struggling. I haven't seen (although I haven't looked) anything about them in the news specifically, but they are now down to being worth 61 cents on the US dollar when it was virtually 1 to 1 a couple months ago. The pound is well into the 1.50's now. Canadian is 0.78, which has virtually eliminated that huge surge (and smaller rise prior) that they had gained on the dollar. Euro is at 1.26.

[Vegas]

Australia must really be struggling. I haven't seen (although I haven't looked) anything about them in the news specifically, but they are now down to being worth 61 cents on the US dollar when it was virtually 1 to 1 a couple months ago. The pound is well into the 1.50's now. Canadian is 0.78, which has virtually eliminated that huge surge (and smaller rise prior) that they had gained on the dollar. Euro is at 1.26.

A friend of mine sold his house in Canada and converted the money to dollars a few months ago. At the time, the conversion rate was 0.97 to a dollar. He was all stressed about trying to time it right. He looks like a genius right now.

[Peter for President]

Then the Feds go and drop the interest rate again and the dollar tumbles today. It wouldn't surprise me if a lot of that ground made up is lost now.

[Vegas]

Then the Feds go and drop the interest rate again and the dollar tumbles today. It wouldn't surprise me if a lot of that ground made up is lost now.

Stocks will likely go up and commodity prices will go up.

[Peter for President]

The pound is down to 1.47. Euro has moved slightly down to 1.25. The other two have stayed relatively the same. The interest cut didn't hurt us here (at least yet) like I thought it would have.

[KinjaKahn]

The pound is down to 1.47. Euro has moved slightly down to 1.25. The other two have stayed relatively the same. The interest cut didn't hurt us here (at least yet) like I thought it would have.

A testament to the entanglement of economies and disappearance of wealth.

[Peter for President]

Pound is down to 1.41. Euro 1.26. Canadian .79. Aussie .63