OPEC has stated they may take action against the dollar and convert to the euro.Catastrophic for the economy?

Question

If they choose to dump the dollar.. which seems likely, will prices of gas increase to above $8 / a gallon. How will the economy fair?

Answer 1

They might convert, but we import about 20 million barrels a day into the United States, way more then any other country. I don't think it would cost a whole lot more, just that the dollar would continue to slip and cost the US more that way.

Answer 2

Who's to say this hasn't been a long planned decision by OPEC (who may have terrorist sympatheic board members) in a economic/terrorist effort to slam the U.S.???

Think about it: Such a economic blow is the one terrorist strike Homeland Security CANNOT thwart or protect the United States from. Our presence in Iraq is "really" doing the U.S.A. some good in stabalizing Oil barrel prices, isn't it?

Despite our evident failure there----Bush is quick to quote: "we're winning the war on terrorism...." purportedly.

However, dollar to euro conversion will unlikely spike up per barrel oil prices. Such a equally inept move by OPEC will backlash in their face, standing to hurt their allied and beloved countries--who can quite easily find ways to retaliate than the United States dares to. As current events stand: OPEC can direct face the U.S. and Britain--but they can't deflect enemies from ALL possible points on Earth.

Imagine a behemoth black bear, swarmed by angry stinging bees. The bees mount an attack on the bear that will call for it to fall in defeat. OPEC is the bear--and they better tread quite carefully.

Bottom line: OPEC can't realistically take on the entire world and expect to win.

Answer 3

if OPEC dumps the dollar, we all walk to work and school. Won't be able to afford any luxuries, like food and clothing. World creates single new currency--the OPEC--and we all face east towards Mecca. Then we bend over and kiss "it" goodbye...OR...we invade and take over the Middle East and restore order, after which oil returns to $ 30 a barrel, and we live happily ever after.

Answer 4

I don't think OPEC has got the muscle to do that. I'm worried about the economic growth of Indie and China and their demand for oil and other enrgy sources. I think America should really look hard at additional energy options like oil from coal. It will lower their vulnaribality of oil.