Iran brands US dollar 'worthless'?

Question

http://news.bbc.co.uk/1/hi/world/americas/7101050.stm

Iranian President Mahmoud Ahmadinejad has suggested an end to the trading of oil in US dollars, calling the currency "a worthless piece of paper".
The call came at the end of a rare Opec summit, and was opposed by US ally Saudi Arabia.
The Iranian president had wanted to include the attack on the dollar in the summit's closing statement.

He is not the first, Jay-Z has apparently used Euro's instead of Dollars in his music and some model doesn't want to get paid in Dollars.

Has the Dollar become weak???

Moses - LOL, debate is the word like

cowboydoc - Your country has a reputation of taking away FREEDOM from other countries, Iran are standing up to western extremists, America doesn't own the earth

Answer 1

Mr. Ahmadinejad could be right, but the last oil-producing country to start selling its oil in euros was Iraq, and that country was invaded and destroyed by the Americans and their puppet Blair very soon afterwards.

Simpletons in this country go on about how strong the pound is against the dollar as if this were somehow important.

The fact is that the pound is weak against the euro, comparing it with the feeble dollar gives a false impression.

The sooner Britain enters the twenty-first century and joins the euro, the better for all of us in Britain.

Answer 2

The dollar is exceedingly weak against the Euro, which currently is far more stable.
Two of the most senior members of OPEC are looking at changing the oil currency because it will greatly increase their wealth.
Saudi is trying to stop it on behalf of the Americans who put their strings.At the present, with oil in $ it is bringing down oil producers while proping up America.
Should the oil states change, it will cause a rececion in America, the likes of which has not been seen before.
The weakness of the $ is being caused by Chinas growing exports, and Americas declining exports, leaving America with a big bill at the end of each month.
You can`t spend what you don`t have...!!

Answer 3

That just goes to show how stupid Ahneedashave is. The oil market is far to volitile for the Euro or Pound or any other currency to take over. They don't want it. Like most things the worlds economies are more than happy to let the US bear the responsibility, that way they can whine with no accountability. Chinas economy may be growing, but it certainly is NOT nipping at the heels of the US economy, it hasn't even taken over Europes largest economy (Germany), and Germanys economy isn't even close to the US economy either. Just look at the dollar value over the past 20 years, it's all ups and downs. Kamran, are we taking financial advise from gangsta rappers and models. Yes, I guess they are known for their vast mental resources. I wonder how much military hardware the US has stokpiled over the years, and how hard it must have been to sell it when the dollar is valued so high, general consumer exports as well. Hmmm. I think the dollar will come back eventually. Like it always has in the past. As for Ahneedashave, he is driving his own economy into the dirt, inflation is high, his closest ally Syria is starting to critisise him, the Syrian people think he is insane, his own government ministers are rebelling against him, he is just a mouthpiece, and not a very good one at that. Stupid, uneducated people might believe his non-sense, but most that can read past a grade 6 level don't.

Answer 4

Until November 2000, no OPEC country dared violate the dollar price rule. So long as the dollar was the strongest currency, there was little reason to as well. But November was when French and other Euroland members finally convinced Saddam Hussein to defy the United States by selling Iraq’s oil-for-food not in dollars, ‘the enemy currency’ as Iraq named it, but only in euros...
This little-noted Iraq move to defy the dollar in favor of the euro, in itself, was insignificant. Yet, if it were to spread, especially at a point the dollar was already weakening, it could create a panic selloff of dollars by foreign central banks and OPEC oil producers. In the months before the latest Iraq war, hints in this direction were heard from Russia, Iran, Indonesia and even Venezuela...All indications are that the Iraq war was seized on as the easiest way to deliver a deadly pre-emptive warning to OPEC and others, not to flirt with abandoning the Petro-dollar system in favor of one based on the euro.

Iraq was not about ordinary chemical or even nuclear weapons of mass destruction. The ‘weapon of mass destruction’ was the threat that others would follow Iraq and shift to euros out of dollars, creating mass destruction of the United States’ hegemonic economic role in the world."

The model is Gisele Bündchen and the story is about her in the link

Answer 5

Cowboydoc
That system ended when the United States government ended the convertibility of the US dollar for gold in 1971.

Fiat money or currency (the Dollar) is a type of currency whose only value is that a government made a "fiat" (decree) that the money is a legal method of exchange. Unlike commodity money, or representative money, it is not based in any other commodity such as gold or silver and is not covered by a special reserve. Fiat money is a promise to pay by the usurer and does not necessarily have any intrinsic value. Its value lies in the issuer's financial means and creditworthiness.

Answer 6

Yes. The dollar has been weak for a long time! But dont be fooled into thinking the Euro is any better. The value of the Euro is propped up by the vlaue of the £ sterling which continues to be the single STRONG cxurrency in the world!

Answer 7

The dollar will recover BUT its time as supreme currency is over and the US's time as the economic world power has already started to end with China yapping at its heels but if the oil currency changes the country who prints that new currrency will be the new Economic giant.

Answer 8

I doubt the dollar has become "weak" you should know your facts though.
The world does not exchange the "dollar" or equivalent, for trade goods but, deals in the gold standard by moving the funds through world banking channels. It has always done this with all countries.
So, if your a supporter of Ahmadinejad I suggest you let him know that we do have other options and, further more, he does not represent the Iranian government but has a "puppet" job and, his colleagues complain that he should keep quiet and quit upsetting all governments since he has nothing to say about anything.

Answer 9

Most probably it will hit $175 in the first year of the invasion. This is due to supply curtailment. On the second year it will stabilize on that ($150) level because our reserved could be depleted by then due to the war expenditures. But on the third year it will start to go down as we recover, provided we win the war... On the fourth year, our currency will strengthen because by then we will be controlling 3/4 of global oil production, with Iraq, Saudi, Kuwait and Iran in our pocket.

Answer 10

Yes it has obviously become weak...there was talk that the Euro would take over as the worlds trading currency......what I dont understand is that if the dollar is so weak, why, here in the UK are we paying so much for petrol when you now get 2 dollars to the pound....it was cheaper when we got 1.5 dollars to the pound....now that I don't understand.