Link: Oil Standard, Greasemonkey conversion of US Dollars to Barrels of Oil.
Oil Standard is a web browser plug-in that converts all prices from U.S. Dollars into the equivalent value in barrels of crude oil. When you load a web page, the script seamlessly inserts converted prices into the page. As the cost of oil fluctuates on the commodities exchange, prices rise and fall in real-time.
Seeing the cost in oil of a new iPod on Amazon.com, or the balance in your bank account is startling. More than just a play on the concept of the ‘Gold Standard,’ or the old ‘Standard Oil’ company, this is a glimpse into the moment when oil will replace (or already replaced) gold as the standard by which we trade all other goods and currencies.
Related posts:
it’s been around since 1973, i believe first proposed in 1971:
Search Amazon for “Recycling petrodollars–a prime challenge for banks today?” (Swiss Credit Bank special publication)
“the US Treasury can print money and buy oil, which is an advantage no other country has” – former U.S. ambassador to Saudi Arabia, Chas Freeman
the assumption is that everyone wants oil. they can print more currency to buy dollars (not oil), so what matters is the exchange rate from that currency to dollars. if they print more currency, their currency falls in its relation to the dollar and, therefore, they won’t be able to buy any more oil by firing up their presses.
similarly, if the U.S. prints more dollars, the price of oil will rise in its relation to the dollar, but the other countries will have to buy more dollars so the dollar is not weakened in relation to the other currencies, only to oil, so there is no cost to the U.S. in the international market.
again, the assumption is that everyone wants oil. when countries are dependent on oil, they’re really dependent on the currency oil is priced in, which is currently dollars.
What? Any country that can print money can use it to buy oil.