A Hypothesis - discuss
That George W ... old oil man that he is, favoured invasion of Iraq because Saddam threatened to sell oil in Euros, and in doing so threatened the convertability of US dollars into oil.
Currently all oil buyers need to purchase $US in order to buy oil (as all OPEC transactions are based on US$ transactions), thereby artificially inflating demand for US currency.
To what extent does petro-dollars ( people who want oil neet to buy USD to buy oil) allow the US to support the debt far above their trade deficit?
If a large oil supplier sold oil in Euros, they may have encouraged other oil producing nations to sell in Euros, and in doing so reduce demand for US currency. This could shake confidence in the USD, especially amongst people who buy it for no other reason other than it is a defacto global currency.
Is the war on terror an endgame strategy the US?
They gave up there power as a manufacturing giant long ago (50's - 60's). Have they lost the economic basis as hegemonic power?
Is nuclear terror the only power they have left?
Is Europe prepared to use current Israeli actions to make a play for Middle Eastern oil fields by offering Euro convertability for oil? Or will they use it as an opportunity to sure up Russian resources
How will Japan, China and India bounce?
Currently all oil buyers need to purchase $US in order to buy oil (as all OPEC transactions are based on US$ transactions), thereby artificially inflating demand for US currency.
To what extent does petro-dollars ( people who want oil neet to buy USD to buy oil) allow the US to support the debt far above their trade deficit?
If a large oil supplier sold oil in Euros, they may have encouraged other oil producing nations to sell in Euros, and in doing so reduce demand for US currency. This could shake confidence in the USD, especially amongst people who buy it for no other reason other than it is a defacto global currency.
Is the war on terror an endgame strategy the US?
They gave up there power as a manufacturing giant long ago (50's - 60's). Have they lost the economic basis as hegemonic power?
Is nuclear terror the only power they have left?
Is Europe prepared to use current Israeli actions to make a play for Middle Eastern oil fields by offering Euro convertability for oil? Or will they use it as an opportunity to sure up Russian resources
How will Japan, China and India bounce?