“Soft despotism is a term coined by Alexis de Tocqueville describing the state into which a country overrun by "a network of small complicated rules" might degrade. Soft despotism is different from despotism (also called 'hard despotism') in the sense that it is not obvious to the people."

Sunday, December 09, 2007

Denominating Oil Outside of Dollars

Now let me think about this for a second. Assuming oil would be priced in Euros, does that have any long term consequence to the dollar? Probably not, but it could get risky for oil producing countries who wish to sell to the US. Just ask any Japanese or German manufacturer how a declining dollar improves their export business.

Any currency mechanism that makes oil more expensive for the United States, will dampen US demand and have an adverse effect on the world economy. It will accelerate the long term trend, now established, that the US must replace foreign imported oil. A No Dollars Thanks Very Much

greater demand for Euros would place an unwanted burden on European economies which are heavily weighted towards export markets.


Oil Min: Iran Has Halted Oil Transactions In Dollars

TEHRAN (AFP)--Major crude producer Iran has completely stopped carrying out its oil transactions in dollars, Oil Minister Gholam Hossein Nozari said on Saturday, labeling the greenback an "unreliable" currency.

"At the moment selling oil in dollars has been completely halted, in line with the

policy of selling crude in non-dollar currencies," Nozari was quoted as saying by the ISNA news agency.

"The dollar is an unreliable currency, considering its devaluation and the oil exporters' losses," he added.

The world's fourth-largest oil exporter, Iran has massively reduced its dependence on the dollar over the past year in the face of U.S. pressures on its financial system.

The U.S. has successfully encouraged major European and Asian banks to cut their dealings with Iran in a bid to make the Islamic republic give way on its controversial nuclear program.

Washington has also blacklisted major Iranian banks for alleged support of terrorism and seeking nuclear weapons, charges denied by Tehran.

Iran has reduced its assets in dollars held in foreign banks and urged OPEC to take collective action to price oil in other currencies such as the euro, instead of the U.S. currency which is used across the world at present.

The decline of the dollar, which has weakened considerably against the euro and other currencies in the past 12 months, has affected the revenues of OPEC members because most of them price and sell their oil exports in the U.S. currency.


  1. Hey, Rufus obviously wrote this, why not give him credit?

  2. I'm trying to figure out how Mercedes can import a pretty nice new model Merc here for 32k at these rates.

  3. I'm going to start redenominating who are our "allies."

  4. Untapped reserves...

    Estimates of the oil resource in place within the Green River Formation range from 1.5 trillion (Smith, 1980; Dyni, 2003) to 1.8 trillion barrels (Culburtson and
    Pitman, 1973; Federal Energy Administration, 1974). About 1 trillion barrels (Smith, 1980; Pitman, Pierce, and Grundy, 1989) are located within the Piceance
    Basin, meaning that this 1,200 square mile area in western Colorado holds as much oil as the entire world’s proven oil reserves (BP Statistical Review, 2005).

    Oil Shale Development in the U.S.

    Reality is more impressive than your imagination in some areas cutler

    TacSat-3: a potential revolution in space-based operational intelligence gathering

    spy satellite debated on hill

    You might want to read the Richelson's The Wizards of Langley.

  5. does this mean iran is out of the us dollar forgery business?

    if so, great news...

  6. Mon Dec 10, 12:01:00 AM EST

    General space-borne MASINT capability is one thing, what we were talking about another, I think.

    Would love to be wrong though.

  7. I'll see if I can pick up the book sometime in the future, though.

  8. I thought it was li'l Kim in the counterfeiting business, but he's probably got lots of company.

  9. 2 Million USD needed here:
    Flying Humans Hope to Land With No Chute

    Jeb Corliss wants to jump from a helicopter and land without a parachute.
    Video: Wing Suit Landing Quest

  10. You might do fine, then next time crash and die...:) roulette

  11. "General space-borne MASINT capability is one thing, what we were talking about another, I think."

    associated with nuclear weapons, reactors, processes, materials, devices, and facilities

    scroll down to space based energy detection...

    again, it would be interesting to know the capabilities

  12. What is "Occupation" said...
    does this mean iran is out of the us dollar forgery business? if so, great news...

    No, it just means that there's an intermediate step, they have to convert their forged dollars to Euros.