Thread: Offshore Baht hits new 11-year high

People in the UK are not in debt of course, they buy things with cash, especially homes and cars. They didn't spend any money on Iraq, or in Afghanistan. The social welfare extended to their vast immigrant problem, and the general use of the free health care system by all, must be leaving their books well balanced. The US is the only one with a deficit. Would be interesting to see what the figures are for many of these countries, and how much in the black they really are, as well as the ability to pay for it. Wonder how many stories will come out when the aftershock of the US economy settles.

Originally Posted by britmaveric

$ yet to hit its prime. The future is bright. Once oil is out of the equation, which I believe is coming sooner rather than later. We will be having a good laff about this.

Oil is certainly NOT out of the equation.
In fact oil is a major factor in the equation right now and will be for a long time.

One only has to look back at how the 1974 oil shock crippled the US economy to think how the new world oil shortage might affect things. Currently, world demand is outstripping supply and OPEC is reluctant to turn up the taps on their limited supply just to keep the west in cheap gasoline. This situation is hurting the worlds developed countries far more than developing nations. Just look at growth in places like China, India and all of SE Asia compared to the west.World demand for oil is increasing rapidly and the worlds biggest producer, Saudi Arabia will run out of easy to access good quality oil in 10 to 30 years. Luckily, :-), Iraq has huge reserves of oil that could keep the USA going for decades after their Saudi friends run out of the good stuff. I guess it was just a blessing in disguise that the US mistakenly thought Saddam had weapons of mass destruction to threaten the free world and incite an invasion.

A world oil shortage will hit the developed countries much harder as their growth figures are much lower than the developing countries. I mean who cares if growth in China slows to only 3% growth. But I bet a lot of people here would care a lot if growth in the USA dropped from 3% growth and went into minus figures dropping the country into recession.

I don't think the oil fields of Iraq are going to be the gold mines that Bush and Co thought they were going to be. I think the cost of protecting the oil there, politically and militarily, is going to be greater than the cost of doing without. But that's just me.

^ Panda, nice analysis

Panda, you need to take a valium or Xanax pill. Iraq is a very small blip on the radar of oil supply needed to fuel the American machine. You should be more concerned about Venezuela or something if you're looking for the next victim....

oil ...smoil


dkimages.com

Originally Posted by mellow

People in the UK are not in debt of course, they buy things with cash, especially homes and cars. They didn't spend any money on Iraq, or in Afghanistan. The social welfare extended to their vast immigrant problem, and the general use of the free health care system by all, must be leaving their books well balanced. The US is the only one with a deficit. Would be interesting to see what the figures are for many of these countries, and how much in the black they really are, as well as the ability to pay for it. Wonder how many stories will come out when the aftershock of the US economy settles.

In some ways the UK might be worse.

The government is throwing billions away on unreformed education and health systems. Debt is at mad levels - I had a thai student staying in the Uk, he span the bank a cock and bull story about wanting money for "tuition" (read Ice, Ketamine, coke, nightclub admission fees) and trousered a £3000 loan. He then moved out ). The Northern Rock bail out exposes every man, woman and chid in the country to approx £12,000 of liabilities. House of cards.

Every penny I can liquidate is now being sent on a one way ticket to Malaysia and Thailand.

Way offtrack there Chinthee !
Iraq has the second biggest reserves of oil after Saudi Arabia.
Venezuela is but a piss in the pond compared to what lies under Iraqi ground.

And as I said, the good quality Saudi oil is running out fast. Its going to get a lot more expensive to recover in the future.

Supply and demand. It really doesn't matter what country you buy your oil from in a world market. You pay for quality (which reduces refining costs) and transport costs. USA buys its oil from Venezuela, despite its low quality, because its cheaper overall considering transport costs. But Venezuela doesn't have long term reserves to supply US needs over the next few decades like Iraq does.
And anyhow, it doesn't matter which country the oil comes from, the thing that matters regarding price is supply onto the world market.

^Actually, you're quite wrong on all counts. The largest prospective reserves are in Kazakhstan, which Chevron and the US have been honed in on for years....The US will get most of this, along with China.

Venezuela oil has been customized to the American market. That is, Venezulean oil is very heavy, and this requires specialized and very expensive refineries that can extract higher products from such sludge.

Do you have any idea what you are talking about?

Originally Posted by Zavier38

Originally Posted by mellow

People in the UK are not in debt of course, they buy things with cash, especially homes and cars. They didn't spend any money on Iraq, or in Afghanistan. The social welfare extended to their vast immigrant problem, and the general use of the free health care system by all, must be leaving their books well balanced. The US is the only one with a deficit. Would be interesting to see what the figures are for many of these countries, and how much in the black they really are, as well as the ability to pay for it. Wonder how many stories will come out when the aftershock of the US economy settles.

In some ways the UK might be worse.

The government is throwing billions away on unreformed education and health systems. Debt is at mad levels - I had a thai student staying in the Uk, he span the bank a cock and bull story about wanting money for "tuition" (read Ice, Ketamine, coke, nightclub admission fees) and trousered a £3000 loan. He then moved out ). The Northern Rock bail out exposes every man, woman and chid in the country to approx £12,000 of liabilities. House of cards.

Every penny I can liquidate is now being sent on a one way ticket to Malaysia and Thailand.

The UK has massive DEBT and no way to pay for it. Not even reserves of $USs!
Buggered if I know how they will get out of it?

Panda is a fraud. He cannot argue issues on the merits.

Originally Posted by mellow

I'm surprised that so many European countries are in such good shape, considering the many problems most of them are facing. Or maybe the real facts about their financial status is a well kept secret, which may cause great dismay once found out.

I don't know squat about economics but I do work in the UK so watch the telly. What I see is every second commercial offering ways of writing off debt. As far as the UK goes I think the people are massively in debt maybe so is the rest of Europe. Since much of the world has copied everything American post WWII it just may be the USA will be the first to go through this crisis with the rest of the world to follow. History has shown the USA to be remarkable resilient and it usually comes out smelling like a rose.

As for its huge spending on the military and Iraq keep in mind much of that money stays in America as it is paying for items made there plus salaries of American service men and contractors.

Originally Posted by chinthee

^Actually, you're quite wrong on all counts. The largest prospective reserves are in Kazakhstan, which Chevron and the US have been honed in on for years....The US will get most of this, along with China.

Venezuela oil has been customized to the American market. That is, Venezuelan oil is very heavy, and this requires specialized and very expensive refineries that can extract higher products from such sludge.

Do you have any idea what you are talking about?

Agree about the low quality of Venezuelan oil.
As for playing down the Iraqi reserves of oil putting up Kazakhstan as a substitute, I have to inform you that you are a bit off track there.

Kazakhstan doest even rate in the top ten when it comes to oil reserves.

Oil reserves - Wikipedia, the free encyclopedia

I guess I do have some idea what I am talking about . Do YOU?

Way, way off track there mate Im afraid. Lost the plot a bit I think.

Originally Posted by chinthee

Panda is a fraud. He cannot argue issues on the merits.

Take it easy . Settle down and have another drink. Its only a an internet chat forum you idiot.

Originally Posted by Panda

Originally Posted by chinthee

Panda is a fraud. He cannot argue issues on the merits.

Take it easy . Settle down and have another drink. Its only a an internet chat forum you idiot.

Panda, my dear boy, you really don't know anything do you young boy? When you want to play with the adults you let us know and we will certainly consider your application.

Originally Posted by mikenot

Originally Posted by bkkandrew

And how, exactly, will oil become 'out of the equation'?

Well some people think that "peak oil" is not all that far off, and if that happens it certainly would n't do the US economy any good (and many other countries ditto!) That would take oil out of the equation.
Of course some people also say peak oil is a myth, and that we will always discover more oil resources.....yeah, right.

Which is prescisely why oil is ever closer to the equation, rather that out of it! Peak oil = ever more expensive prices = ever more influence on world (inc. USA's) economies.

Britmaveric, on the other hand, gets further out of the equation of reality on a daily basis. I wonder if you are joining him...?

^^^ Hmmm ironic coming from someone who doesnt deal with reality himself.

Originally Posted by britmaveric

^^^ Hmmm ironic coming from someone who doesnt deal with reality himself.

And how would you know?

Oh I forgot, just another of your baseless comments that ignores all facts...

^^^ Ahhh from the lad who speaks with fork tongue?? Now I am impressed...

lucky my savings is not in us dollars or gb pound the danish krown is one of the worlds strongest curensies as well as the euro

Originally Posted by britmaveric

^^^ Ahhh from the lad who speaks with fork tongue?? Now I am impressed...

What are you on about now?

You are either:

• Drunk;
• Wearing a white garment, distinguishable by 'fasten at the back' appendages;
• Final proof of the Pattaya effect...

Either way, grow up.

$4 a gallon gas? Predictions surprise Bush

Peter Maer of CBS News Radio asked: "What's your advice to the average American who is hurting now, facing the prospect of $4-a-gallon gasoline, a lot of people facing ... "

"Wait, what did you just say?" the president interrupted.
"You're predicting $4-a-gallon gasoline?"

Maer responded: "A number of analysts are predicting $4-a-gallon gasoline."

Bush's rejoinder: "Oh, yeah? That's interesting. I hadn't heard that."

Let's move across the channel now and look at France. They have a VERY large Arab immigrant population, with a very large unemployment problem. Yes, they had new elections, but the prior socialists, I assume have done a wonderful job in giving away or emptying the country's coffers, they must of course have some well balanced books, all in the black. They also buy their houses and cars with cash, wouldn't dream of using a credit card while on unemployment, after qualifying for it, for a year or more, by only working a couple of months. The constant social unrest by the poor unfortunates, with their burning and looting must not have an economic impact either, nor the free medical care for all. Another economy to be envied and copied. The small trader problem which surfaced, another small drop in this tiny bucket. Europe is big, there are a couple of other tiny economic problems as we move east or south yet to be discussed, how strong will the Euro be down the line when it all unravels.

Originally Posted by chinthee

Originally Posted by Panda

Originally Posted by chinthee

Panda is a fraud. He cannot argue issues on the merits.

Take it easy . Settle down and have another drink. Its only a an internet chat forum you idiot.

Panda, my dear boy, you really don't know anything do you young boy? When you want to play with the adults you let us know and we will certainly consider your application.

Us now is it?
Need some back up do we?

Originally Posted by Bexar County Stud

$4 a gallon gas? Predictions surprise Bush

Peter Maer of CBS News Radio asked: "What's your advice to the average American who is hurting now, facing the prospect of $4-a-gallon gasoline, a lot of people facing ... "

"Wait, what did you just say?" the president interrupted.
"You're predicting $4-a-gallon gasoline?"

Maer responded: "A number of analysts are predicting $4-a-gallon gasoline."

Bush's rejoinder: "Oh, yeah? That's interesting. I hadn't heard that."

If GW could have got the Iraqi oil pumping at full potential it would have flooded the market and driven the world price down for the worlds biggest oil consumer (USA). The original deal was to privatize the Iraqi oil industry under US and British company management and get some bulk oil flowing onto the world market to compete with OPEC and drive down the price. The west boxed itself into a corner putting sanctions on Saddam and restricting Iraq's oil exploration and hence exports. But the Chinese and Russians started moving in and signing contracts with Saddam to develop the Iraqi oil industry. So Bush and Blair had to move in and take over to make sure that they had control of the Iraqi oil industry.

The problem is now twofold. The new democratic government in Iraq has decided to go with OPEC and ration out their oil reserves rather than to let the Brits and Yanks take control and rape the countries reserves by flooding the world market. And of course the Iraqi resistance keeps sabotaging the pipe lines.

Now that world demand for oil from China and India is pushing up the world price higher and higher, its still crucial for the USA and UK to get the Iraqi reserves onto the market and hold the price down. Not quite the big drop in price to put OPEC on the back foot hoped for at the start, but at least a compromise solution to maintain the Status Quo and keep world oil prices stable.

It will be interesting to see if Obama still wants to pull out of Iraq if he becomes president and gets the full picture?

Originally Posted by Panda

OPEC on the back foot hoped for at the start, but at least a compromise solution to maintain the Status Quo and keep world oil prices stable.

Shit, I didn't realise that an aging rock band still had so much influence! Or needed help from the States.