http://www.dailyreckoning.com.au/rate-cut-damns-us-dollar/2007/11/02/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 http://www.dailyreckoning.com.au/rate-cut-damns-us-dollar/2007/11/02/comment-page-1/#comment-4325 Alan Fri, 02 Nov 2007 06:30:51 +0000 http://www.dailyreckoning.com.au/rate-cut-damns-us-dollar/2007/11/02/#comment-4325 I have a question. Logically if the US dollar is doomed,what would happen to the "profitability" of oil companies and miners ? I suppose that a basket of currencies, which presumably would include initially an overweighting of US dollars, would be established for the settlement of contracts. It has already been suggested that this may be on the agenda at the next OPEC meeting. Since there are differing national interests, such as whether a country is pegged, or maybe a trading partner, it seems unlikely that a consensus would be achieved. However in a doomsday scenario presumably this would happen, and be extended to all commodities. I cannot work out whether this would be a good thing or a bad thing for your average profitable oil producer, and how much it would depend on the country in which it is listed. Maybe it's hypothetical as the scenario might be part of a global recession, but I would be interested to hear people's thoughts. I have a question. Logically if the US dollar is doomed,what would happen to the "profitability" of oil companies and miners ? I suppose that a basket of currencies, which presumably would include initially an overweighting of US dollars, would be established for the settlement of contracts. It has already been suggested that this may be on the agenda at the next OPEC meeting. Since there are differing national interests, such as whether a country is pegged, or maybe a trading partner, it seems unlikely that a consensus would be achieved. However in a doomsday scenario presumably this would happen, and be extended to all commodities. I cannot work out whether this would be a good thing or a bad thing for your average profitable oil producer, and how much it would depend on the country in which it is listed. Maybe it's hypothetical as the scenario might be part of a global recession, but I would be interested to hear people's thoughts.

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