mai said:
It's not about states, it's about lack of those who could pay for ever-growing production costs. Players on global markets sell smth to have a constant flow of foreign currency in their pockets for overseas operation, understandably keeping a great deal of accounts nominated in reserve currencies or currencies of primary buyers such as dollar or euro. If global financial system is no more, these two effectively rendered as cut paper. What any company with any sign of strategic planning will do in such cirsumstances? Will try to hedge risks, move opertations to other places, work out other options of mutual trade like swaps etc. The notion that someone have to sell smth is silly at best, and again a wishful thinking that global energy market will remain intact. It won't, market will shrink significantly for various reasons up to physical destruction of certain region markets.
High amplitude fluctuaitons kill people, you know ;) |
if saudi arabia buys tanks and cars with oil, dollar or gold doesnt realy matter. they have to sell, they need the cars for keeping their people happy and te tanky if someone isnt happy. sames goes for all of the golf states. and then there are the other oilstates, some need toilettpaper, all want cars, all want chemical goods, most have to buy gasoline. the golf will turn to a desert if they stop selling oil, they produce nothing. and dont fear for the euro, china and the us are drowning in debt,(and the us in a trade deficit that will grow alot when CA is totaly out of water). japan is a zombie for 20 years and the uk is taking new loans faster than greece ever did...
