Re: Putin: Russia to price oil in Euros

["David Schanoes" <Schanoes@xxxxxxx>]

Before we get too carried away with scenarios of the Revenge of the
Euro, let's consider the impact such a move will have on the oil
importing countries, particularly those countries of the deveoping
world, like Argentina, unless it negotiates a favorable contact with a
producer, a la certain Central American countries with
Mexico/Venezuela:

1.  The immediate impact will be a immediate increase in oil costs,
draining more resources away from these areas and to..... the oil
companies themselves-- ExxonMobil, BP/Amoco, Chevron/Texaco, Yukos,
ConocoPhillips, Elf, Fina, etc.

2.  The Euro denominated economies, which are twice as export oriented
as the US economy will find export markets drying up almost overnight.

3.  Bank distress will increase drastically producing demands for
immediate payment by the creditors on the debtors.  Starvation rations
will look like a feast .  OPEC 1 produced Pinochet.  OPEC 2  produced
the Contras and the lost decade in Latin America, and Reagan, and
Thatcher,  OPEC 3, the war in Iraq.  This variation on a theme will
produce privation that will dwarf all of the above. Although half the
world's population already lives on $2 or less per day, that number can
always be increased, and the bourgeoisie will make sure of it.

4. A rich man can always get through poor times bettter than a poor
man, so, although the Euro switch is a possibility, hold your applause.
It is an index of the self-demoliton of capital, not a measure of
progress.

dms






~~~~~~~
PLEASE clip all extraneous text before replying to a message.