If Iran decides to recieve European payment for crude oil in EUROS?

Question

instead of US dollars, will the US invade?

( Saddam switched to euros in 2000 (and later converted his $10 billion reserve fund at the UN to euros) and the euro gained 17% against the depreciating dollar. Iraq was invaded to put in place a government that would stifle OPEC's movement towards the euro, keeping the dollar as the standard oil currency. Iran is OPECs second largest producer and if it switches to the euro, the dollar will crash.
Perhaps this is the reason for the Iraq war - the axis of evil isnt terrorism per se, but American bankruptcy.)

China's main supplier is Russia but is in major talks with OPEC who would like to be the number one supplier for the country with the largest standing army in the world. Meanwhile Bush is in talks with China to close the US-China trade gap and make the yen more valuable!

Answer 1

Also, in the (many) months before invasion , at a meeting of Arab oil producers , Saddam (alone) proposed a cut in production to the west (esp. USA) actually suggesting that this could be used as a threat against the USA economy for its continued financial and military support of Israel (seeing himself as the champion of pro-Palestinian interests).

I remember thinking on that day that he should have kept his big mouth shut. He paid the price for this outburst and for giving $100's millions to Palestinians each year. He made the two most powerful enemies in the world.

Iranians occasionaly murmer about production cuts for political purposes but they are ver careful not to use the same kind of rhetoric as Saddam, anyway it goes without saying that any attack on Iran will lead to an enormous price spike.

A serious prolonged cut in production is much more dangerous to the vulnerable US economy than a switch to Euros (which is inevitable anyway).

In fact when the Chinese and Japanese finally work out that they have bought a pup in terms of US treasury debt and start dumping it then nothing will hold up the dollar (although Investors like Berkshire Hathaway have lost US $ billions trying to short the dollar too soon).

America is the worlds largest debtor simply because it continues to write new debt an sell it knowing full well that it can never hope to repay. China is partly responsible for this state of affairs as it continues to eat up all the debt that the US can serve up (and payment in US $).

China has continued to buy in an attempt to keep its own currency artificially low against the $ in order to compete and send even more trade goods into the USA (bought on consumer credit $) on a currency held up by manic Chinese and Japanese buying. China therefore subsidises its own exports by buying US treasuries.

You never thought of America as being in receipt of US $ trillions foreign aid, did you?

Although banks are quietly divesting themselves of US $ and buying alternatives (incl. Euros) they are reluctant to dump the (potentially) worthless pieces of paper (US treasury bonds) as that will affect the value of their current holdings.

If they do, USA will have to sell of acres of real estate and assets (i.e. Texas, Alaska etc....) or simply go to war with china in order to avoid payment.

It has occured to me that if they (US) were to exclusively supply China with Iranian oil that this would gain great favour with the chinese, although I believe that the canny chinese are starting to make their own arrangements with Iran.

China has been very quiet so far with regards to the oil market but if America does make a grab for iranian oil I think that they may just find a new adversary (china) which they would be well advised to leave well alone.

"Let China sleep, for when she awakes the whole world shall shudder".

Many other commodities would also probably switch to being denominated in Euros as the new anchor/reserve currency.

This would also mean a switch of the balance of economic (and eventually military) power of biblical proportions.

Witness the end game

End of empire, as new powers emerge.

Answer 2

The decline of the US dollar will actually help reduce the debt and lower the amount of imports the US has while it increases the exports. The Euro may become the dominant instrument in trade but the position of the US as the leader country in economic matters will not change. The financial control of the large corporations goes beyond national boundaries. The rise of the Euro did not cut the British pound much and the US has far greater assets than the UK. The move against Iraq was not over finances. Look at the real influences. The rest of the world took payoffs and left Saddam abuse his people just as they are now taking payoffs from Iran. Wise up.

Answer 3

It used to be dollars but now countries like Russia, Iran, Venezuela take it in any form they can. to reduce over reliance on the USA. This is a good reason not to bomb people or they will stop doing business with u.

Answer 4

Does China (who gets one quarter of OPEC output) pay with US dollars or Euros?

Answer 5

Yes. I also heard that was true. That was why we went in and took Saddam out, before he refused to sell us any oil. (the us dollar was worth less than the euro)Another interesting aspect of Saddams removal was that it took us 21 days after we set foot in Iran/Iraq that we toppled Saddam's big Statue to the ground. Kids and people were running around yelling, "He's fallen, He's fallen!". The angel Gabrial told Daniel that it took him 21 days to withstand the King of Babylon and in Revelation the words ,"Babylon has fallen" is quoted here from an angel! thought you might find that interesting.

Answer 6

Good point.
Yeah, it does seem to be about control of energy resources. Cheap oil must be in the U.S. constitution...

Answer 7

that's not even a question. But good info for all would-be currency speculators. Sell your greenbacks people.

Answer 8

Well, that would be the end of the petro-dollar... and a sizable chunk of the us wealth.

Answer 9

well she asked if US will invade?

and most likly yes... but the reason will be shown as iran had WMD... or iran has terrioist you know the usual