Only months after the euro-launch, Saddam's Iraq announced it was switching from selling oil in dollars only, to euros only -- breaking the OPEC agreement. Iran, Russia, Venezuela, Libya, all began talking openly of switching too -- were the floodgates about to be opened?
Then aeroplanes flew into the twin-towers in September 2001. Was this another Houdini chance to save the US (petro)dollar and the biggest financial/economic crash in history? War preparations began in the US. But first war-fever had to be created -- and truth was the first casualty. Other oil producing countries watched-on. In 2000 Iraq began selling oil in euros. In 2002, Iraq changed all their petro-dollars in their vaults into euros. A few months later, the US began their invasion of Iraq.
The whole world was watching: very few aware that the US was engaging in the first oil currency, or petrodollar war. After the invasion of Iraq in March 2003, remember, the US secured oil areas first. Their first sales in August were, of course, in dollars, again. The only government building in Baghdad not bombed was the Oil Ministry! It does not matter how many people are murdered -- for the US, the petrodollar must be saved as the only way to buy and sell oil -- otherwise the US economy will crash, and much more besides.
2007-05-10 08:06:28 · 5 answers · asked by Anonymous in Politics & Government ➔ Politics
Repugnicans send me into my own personal depression whenever I see what they have done to the US.
2007-05-10 08:16:04 · answer #1 · answered by Anonymous · 0⤊ 2⤋
No, and no. Though other currencies, most notably the Yuan, do need to gain 'strength' relative to the dollar, as they are currently undervalued. And, that correction, when it finally happens, could be viewed as a 'weakening' of the dollar, it's unlikely to be a collapse.
The currency oil (or any other commodity) is traded in is only an issue when it comes to exchange rates. Oil, for instance, is a volatile comodity (no, not just in that it burns - it's price shifts rapidly). Trading oil in a relatively stable currency - like the dollar or euro - doesn't reduce that volatility, but it doesn't add to it, particularly if you're trading oil in your own currency. Trading a commodity in another currency adds exchange-rate volatility to the volatility of the commodity, making trades riskier. That represents a problem for the market, but, the futures market already allows hedging against commodity and exchange rate volatility, so it really isn't the kind of issue that could trigger an economic catastrophe - even though it is by no means a trivial thing.
2007-05-10 15:19:33 · answer #2 · answered by B.Kevorkian 7 · 0⤊ 1⤋
Yes, it will eventually be an inflationary recession, everything is going up, I am sure the dollar is not worth it's face value and it is declining in foreign in foreign markets against other major currencies like the Euro, the Yen and Canadian Dollar, take good care of your jobs.
2007-05-10 15:19:44 · answer #3 · answered by Jorge D 4 · 0⤊ 0⤋
As the first answer said, you'd better move away from here....they're more into name calling and dumb answers in this forum. My answer...yes. That's why Gates and Buffet are investing in euros and why Halliburton, the Carlyle Group (Papa Bush) have their money in offshore accts. and the reason the Bush family is buying land in S. America.
2007-05-10 15:22:32 · answer #4 · answered by SueB 3 · 1⤊ 0⤋
Yes, move away now.
2007-05-10 15:13:10 · answer #5 · answered by Lavrenti Beria 6 · 1⤊ 1⤋