Wizdom
15-05-04, 21:51
Saudi oil props up the U.S. dollar globally?
Pressure Point - 09/05/2004 09:49:00 GMT
Saudi Arabia has agreed with the U.S. to sell all oil in dollars, also it has ensured that the dollar is the operating currency for all of OPEC.
And because every country depends on oil at some level, this shows that the U.S. economy has a huge advantage. Every country must have considerable reserves of dollars on hand to purchase oil. For example Japan, the world's second largest economy which is utterly dependent on oil imports, has trillions of dollars in reserves.
But if oil were suddenly sold in euros, the U.S. dollar's economic domination would end overnight, and will go directly to the Euro instead. If Japan and all of Europe, for example, suddenly converted all their dollar reserves into euros and subsequently cut all those trillions of dollars out of the U.S. economy, the U.S. economy will surely collapse.
In late 2000 Iraq did: it switched from selling its oil only in dollars to only accepting euros. Iran, number two on the Bush Administration's Axis of Evil list announced that it is considering doing so as well. OPEC began discussing the advantages of an across the board switch from the dollar to the euro. This is something the U.S. could not possibly accept. This information has been largely suppressed in the U.S. media.
Thus, by Saudi Arabia selling its oil in dollars, it will maintain the U.S. economy, and so strengthen its position all over the world.
Pressure Point - 09/05/2004 09:49:00 GMT
Saudi Arabia has agreed with the U.S. to sell all oil in dollars, also it has ensured that the dollar is the operating currency for all of OPEC.
And because every country depends on oil at some level, this shows that the U.S. economy has a huge advantage. Every country must have considerable reserves of dollars on hand to purchase oil. For example Japan, the world's second largest economy which is utterly dependent on oil imports, has trillions of dollars in reserves.
But if oil were suddenly sold in euros, the U.S. dollar's economic domination would end overnight, and will go directly to the Euro instead. If Japan and all of Europe, for example, suddenly converted all their dollar reserves into euros and subsequently cut all those trillions of dollars out of the U.S. economy, the U.S. economy will surely collapse.
In late 2000 Iraq did: it switched from selling its oil only in dollars to only accepting euros. Iran, number two on the Bush Administration's Axis of Evil list announced that it is considering doing so as well. OPEC began discussing the advantages of an across the board switch from the dollar to the euro. This is something the U.S. could not possibly accept. This information has been largely suppressed in the U.S. media.
Thus, by Saudi Arabia selling its oil in dollars, it will maintain the U.S. economy, and so strengthen its position all over the world.