Will the EuroDollar or the Yuan replace the Dollar as PetroCurrency?

Question

We know that "stabilize" the Middle East is code for maintaining the US Dollar as the key PetroCurrency.

Europe would not join the current conflict because they see the U.S. in a no-win position, and they want to position themselves and the EuroDollar to fill the void when the U.S. and British are finally forced to leave the region.

China is flying under the radar because no one sees them as having built the same relationships in the Middle East as has the E.U.

Projections are for Chinese petroleum consumption rates to jump exponentially over the next ten years, perhaps surpassing the U.S.--in economic ruin--as the world leader in oil consumption.

Will the Chineseand the Yuan edge out the E.U. or will the EuroDollar triumph over the dependent consumer?

Answer 1

clearly someone who knows how the world actually works. There are 2 levels of information people operate on...
Currently in america the propaganda/Fox News is the dominant world for most americans
The other is for people who can think and if anyone watched closely on the news prior to us deciding to really invade Iraq Saddam (the only bad guy to die thus far somehow we have stopped actively searching for Osama) had demanded that he be paid for his oil in Euro's.

My favorite propaganda has to be
"they hate us because we are free"

then not two lines later
"we are bringing them the gift of democracy"

adding those two up you cant imagine why we wouldnt be winning hearts and minds.

And to the question yes eventually a different currency will rule. But if you are watching the news the Japanese have gotten very close to us recently!! Which for all the xenophobes in the US wont come across too badly unless they perseverate on Pearl Harbor. What I am implying is that maybe canada, mexico, USA and Japan go under a similar currency as a Euro and viola we are back on top!! Sharing the glory some but better than what happened to the British when the Pound was traded in for a fancy new dollar.

Answer 2

The $ will long remain the curreny of the world for one simple reason. People, governments and more importantly, investors the world over trust and believe that the American system, even with all its faults and problems, is still the most dynamic, flexible, job producing, strongest and stable the world has ever seem or is likely to see into the future. China has a ton of problems that will surface as its economy matures (78,000 large riots as reported by the gov't last year over seizures of land and property to name just one.) and the Euro is not liked by many of the nations that use it. Italy and Holland have both comtemplated pulling out of it and others complain that it has hurt their economy. The US economy, for all its faults, is still and will be for a long time to come the driver of growth in the world.

Answer 3

Ok...lets get to basics.

As China's demand for oil rises, it will need to buy foreign currency in order to purchase oil. This will push the Yuan downwards, not upwards.

More likely there will be other factors that will be in play and besides, the Yuan is not floating. It is artificially kept low, in order to help China's domestic export orientated industries. Also an expensive USD is in China's interests, because they possess considerable reserves of US treasury bonds.

I don't know what makes you think the US will be in "economic ruin".

Answer 4

It's not called the Euro Dollar; it's not called the Euro Pound, or the Euro Mark or the Euro Frank or the Euro Drachma, or the Euro zloty or the Euro lira....it's JUST called the "EURO". Period.