UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: SuisseBear Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35652  
Subject: Re: foreign bonds and dollar vs euro Date: 4/21/2004 1:43 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
This would lead to further devaluation of the dollar perhaps causing oil to be priced in a more stable currency.

There is a case for this having already happened.

OPEC recently justified higher prices in nominal $ terms by pointing to a declining dollar having led to an erosion of their revenues when measured in purchasing power terms (yeah and I doubt they are using an hedonically adjusted CPI - they probably look at the cost of their extended London and Switzerland vacations when they're escaping the hot Saudi summer <gg>).

I'm led to believe that actually switching the pricing currency for oil nominally would be quite a longwinded process but since they're already making adjustments such a change would be more of psychological nature.

IMHO the more important element here is their choice of reserve currency - haven't looked up their "market share" but I'd think a possible move away from the $ may hurt US bonds thoroughly.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next


Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.