Saturday, August 14, 2010

Iran to start selling oil in any currency

http://economictimes.indiatimes.com/articleshow/6308125.cms?prtpage=1

Again, the writing is on the wall with the world rejecting the USD.

Read page 95 http://www.jhuapl.edu/urw_symposium/proceedings/2009/Authors/Rickards.pdf where gold will be a constant. A new dollar/gold equilibrium. So, 1 oz of gold would equal a fixed amount of wheat, corn, oil, etc. But, 1 USD will then be equal to say 1/4000th of an oz of gold. This would be a realistic case of gold going to $4,000 an oz. We would have to convert the USD into gold to purchase a commodity as the seller of the commodity does not accept USD's.

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