Bloomberg: Soaring Oil Prices May End Dollar's Global Status, Study Says

Bloomberg reports:

"Soaring oil prices may cause an energy crisis that will eventually lead to a new world financial system based on multiple currencies instead of the U.S. dollar, according to a Rice University study.

Rising inflation fed largely by oil-producing countries will force Western governments to tighten monetary policies, undermining export-driven economies in China and India, according to a study released by the Houston-based university's Institute for Public Policy. That would undercut energy demand, ending cheap credit worldwide that is fueled by so-called petrodollars and further undermining the global economy.

...

China, India and Middle Eastern oil producers such as Saudi Arabia have an interest in working with Western governments to establish a financial system based on a range of currencies that would offer similar stability to the days of the gold standard ...".

But what's the knowledge behind that attempt of reforming the financial system?

USD is not good or bad itself, if not to consider its usury nature (credit bubble) that can be true for any currencies or for their set. What's the difference to have one credit bubble or the several ones, which will be connected via mutual exchange?

The stuff for thinking is in this dialogue, for instance.

From my point of view there is a way to parallel current financial system by natural money in order to have a choice in sense of democracy, freedom and liberty (if they and you are serious about that values). Then to see what works better.

No irony here. Changes without changes save nothing, but can destroy everything globally.

The best way to avoid confrontation is not to use credit money for oil trading

Insisting on who must be on the knees is senseless. If someone can give something in exchange for oil or for any other stable natural money, why not do it?

Back stream

Imagine the part of the world which does not export oil, gas, food etc. for money as usual any more. These commodities do not grow in prices because they are being sold for natural money (i.e. commodity backed). Will the small commodity exporters turn their export to that center of globalization in order to find more social, economic and political stability?

It's worth thinking about it because the mentioned center can be distributed - being "born" in one part of the world it could re-connect people without "developed" vs. "developing" worlds separation (from globalization 1.0 to 3.0).

Let me invite you to read "G-7 Central Bankers Stymied By 'Crude Oil Vigilantes'" by Gary Dorsch and think.

Bread is head of everything in Russia

Rosbalt informs that Russia may form an international grain organization. Journalists like to compare such ideas with OPEC because there is NOPEC.

Except Russia Ukraine, Kazakhstan, Hungary, Bulgaria, Romania, Turkey and Belarus can be the members of this organization. Why not Poland, Canada and the US?

Currently Russia is the 3d biggest grain producer in the world. Historically Russia exported grain and the excessive focus on export was one of the reasons for instability in Russian Empire and led to the Russian Revolution in 1917 and civil war.



If this international grain organization will sell grain for rubles it would prevent import of inflation and risks of hunger.

I think agriculture can be socially effective and profitable if "project economy", but I prefer the terms "collaborative economy" or "knowledge business" (the economy and business of free Knowledge Persons), would applied.

Imagine land and fuel owners, holders of agricultural knowledge, sales persons, etc. form the temporary projects as the flat one level collaborative economic units of Knowledge Persons, produce and sell food, and share the results.

In contrast to industrial approach the collaborative economy may turn out zero investments and lead to natural money and the Global Natural Money Board.

I understand - there are many "if", but as Russians know: "... вот новый поворот ... что он нам несет ... ты не разберешь пока не повернешь ... и пугаться нет причины, если вы еще мужчины ... выезжайте за ворота и не бойтесь поворота, пусть добрым будет путь ...".

Rice and other natural money

As you may know a few South-East countries want to establish the cartel in order to manage the situation with the tripled price of rice.

The Asian Development Bank opposes that initiative.

I don't know how this kind of cartel can assist its members in preventing price war and risks of hunger. It depends on how their monetary system is being connected with the global monetary system. But if to think about rice money similar to oil & gas money, the creators of rice money might benefit twice - by forming both rice based market with fair and controlled prices and rice money emission center. It would be good and for those who can supply goods and services needed for rice producers.

Rice money, oil & gas money and other natural money might be mutually exchangeable like USD, EUR, GBP, etc.