Re: [A-List] Correction to "Engdahl: Why Iran's oil bourse can't breakthe buck"

[Michael Hudson <michael.hudson@xxxxxxxxxxxxx>]

Hugh, I think your critique of Bill Engdahl's article is a bit unfair. I
think he was making precisely the points that you are pointing out,
including his citation of Cook. I actually saw an early version, and thought
he touched all the bases, without any biased agenda. The point he's trying
to make is the fact that keeping sales proceeds in dollars -- or more to the
point, in central bank holdings of US Treasury bills -- gives America a free
ride and leaves the dollar holders with at best a depreciating asset.
    Your point that Iran has been taking payment in euros is besides the
point. When I buy records from Britain, I pay in dollars, so the CD store
"takes" these and then turns them over to its bank, which turns them over to
the Bank of England to hold. Everyone takes payment in any given currency.
So your point, Cook's point, Engdahl's point, my point and Henry Liu's point
all turn out to be the same point.
    Michael Hudson


On 3/10/06 11:11 PM, "Hugh Whinfrey" <hugh@xxxxxxxxxxxx> wrote:

> No, "orgument" is probably the best word for it.
>
> The article dances all around the inconvenient fact that
> Iran has been taking settlement in Euros for well over
> half of its oil exports since at least 2003. It is a major
> omission that, once taken into consideration, shows only
> how superficial the orguments Engdahl presents are. Whether
> it is deliberate misinformation or just shoddy research, I can't
> say as I have little idea of the guy's agenda. He seems sincere
> enough so I'd give him the benefit of the doubt.
>
> In fact, if we go along with Cook's point that it only concerns
> what currency the revenues are invested in then the Iranians
> would look pretty silly pricing in dollars, taking settlement in euros
> and then converting those euros back to dollars for investment
> purposes. Odds are they are already being invested in euro-denominated
> instruments and have been for several years now.
>
> Hugh
>
>
> ----- Original Message -----
> From: "Sabri Oncu" <soncu@xxxxxxxxxxx>
> To: <a-list@xxxxxxxxxxxxxxxxxxx>
> Sent: Friday, March 10, 2006 10:25 PM
> Subject: [A-List] Correction to "Engdahl: Why Iran's oil bourse can't breakthe
> buck"
>
>
>>> Dear A-List members.
>>>
>>> What say you about the oruguments of William Engdahl?
>>
>> Apparently I invented a new word for the English language: "orugument". I
>> meant, "argument". I blame it on my new keyboard, which is less loud than
>> the previous one during typing but to achive this they somehow seem to have
>> used some dampers or suspenders in the construction of the machine, which
>> makes it difficult to realize whether you hit a wrong key or not.
>>
>> Best,
>>
>> Sabri
>>
>