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


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Join the forum, it's quick and easy

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


Neno

I can be reached by phone or text 8am-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

Would you like to react to this message? Create an account in a few clicks or log in to continue.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Commodities Depend on the Currency

    Lobo
    Lobo
    Moderator
    Moderator


    Posts : 28411
    Join date : 2013-01-12

    Commodities Depend on the Currency Empty Commodities Depend on the Currency

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

    Commodities Depend on the Currency

    Posted on December 8, 2015 by Martin Armstrong

    Commodities Depend on the Currency Russian-Gold
    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 Thu 28 Mar 2024, 2:57 pm