Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality

Iraq Dinar/News is a popular topic among many topics this board offers.

See the footer of the board for our Facebook and My business pages.

Be sure and join our Dinar Only Newsletter Email list. It is located on the right. Your User Account Email when joining the board is for with in Neno's Place use of board information which you can control in your profile settings.

Neno

NOTES:
For "Advertising" with in my board to our Membership and Visitors see our "Sponsor Ad Info" in the Navbar. Neno's Place receives a low of 50,000 views a week to over 100,000 plus many times thru out the year.

I can be reached by phone or text 7am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.
Established in 2006 as a Community of Reality

Longest Dinar holding Community. Reach Admin by Private Message. Copyright © 2006-2017


Commodities Depend on the Currency

Share

Lobo
Moderator
Moderator

Posts : 17902
Thanked : 880
Join date : 2013-01-12

Commodities Depend on the Currency

Post by Lobo on Tue 08 Dec 2015, 10:47 am

Commodities Depend on the Currency

Posted on December 8, 2015 by Martin Armstrong


QUESTION: Mr. Armstrong, you said the decline in commodity prices will not reduce production but can actually accelerate output. How can this be? It does not make sense.
ANSWER: Your perspective is too narrowly focused and solely dollar based. Because the commodities are declining in dollar terms with the dollar rising, in local currencies outside the USA the cost of production declines, and thus in local currency many commodity producers will make even more. Hence, they increase production. It all depends upon the base currency of a producer. Your reasoning applies to dollar-based producers.
In the case of OPEC, they simply need the money. They also have to compete with ISIS selling oil cheaply to fund their worldwide revolution. The budgets of most Middle Eastern countries increased sharply so now they need to exceed previous quotas to make ends meet.
This entry was posted in Q&A and tagged Commodities, ISIS, OPEC by Martin Armstrong. Bookmark the permalink.

    Current date/time is Tue 06 Dec 2016, 9:53 am