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

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

Unlikely. The Euro looks solid but there are major factors on why OPEC won't dump the dollar, much less the world for the Euro or another currency.
People do not understand how widespread the dollar is used as a benchmark. No other currency is widespread as the dollar and if a transition where to happen, the global markets would fail or at least countries would start a recession before the transition is complete.
Why? Remember the USA is a consumer market. Other countries sell their items to the US and other countries- but no other country buys items like the US does. This especially applies to China. China did threaten to sell off their entire or a major sum of dollar foreign reserves once, but if they did then they would be effectively kill their #1 consumer and so it would stunt China's growth as well.
Financially everything is tied to the markets in the US. Every country can start talking with balls about how everyone can live better without the US but this is not true. Everyone is dependant on the US in one way or another.
Europe is panicking about a weak dollar because it makes their exports expensive. They will take action soon if the Euro becomes too powerful.
Remember, OPEC is just a thumb compared to China and the EU. Don't worry too much about it. They won't drop the dollar anytime soon.
$8/gal is nothing too. Our gas is $3 a gallon because we get a heavy govt. subsidy. Most nations are paying twice more than you and everyone else living in the US is.

Should the dollar fall through the crapper anyway without OPEC's actions, everyone's screwed. A likely scenario would be that countries might get the US back on its feet. It sounds unlikely, but if that doesn't happen then there will be a global depression.

Answer 2

Let U.S. join the Europa, then convert U.S. Dollar to Euro