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the oil dollar ...the oil euro?

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Politics & Debate
if bush brings america into such direpute that the majority of trading nations decided to boycot the dollar and trade in euros ...
especialy with oil ...would america go bust. i'm not hot on economics ...not even warm so try not to get to complicated ......pleeeese.

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    And that was a massive factor in the war on Iraq. Saddam Hussein had recently switched from dollars to euros when selling its oil, and the Americans didn't like it one bit.

    Dubya thinks that the oil is the one saving grace for the dollar, and if other nations stwich to the euro the consequences could be catastrophic.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Originally posted by Aladdin
    And that was a massive factor in the war on Iraq. Saddam Hussein had recently switched from dollars to euros when selling its oil, and the Americans didn't like it one bit.

    Dubya thinks that the oil is the one saving grace for the dollar, and if other nations stwich to the euro the consequences could be catastrophic.
    what would be the main problem. having to dig deep into their reserves to buy euros and other currencies? with the size of their balloning defecit do they have any real reserves?
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    In one of the posts i made earlier today is an article which points out how heavily the Bush deficit economy has plunged the US into future dire straights, essentially mortgaging the nation's economic prospects to foreign investors.

    http://www.guardian.co.uk/print/0,3858,4633701-111039,00.html
    Excerpt:

    In plain English, America relies on the rest of the world to finance its deficits. The rest of the world was happy to do so when the US economy was strong and returns were high, but investors will put their cash elsewhere if America looks weak economically. America borrows hundreds of millions of dollars from the rest of the world each day to cover its savings gap and, under George Bush, US dependence on foreign capital is set to increase.

    The decline of empire thesis is not exactly new. Paul Kennedy, the British historian, wrote the best-selling The Rise and Fall of the Great Powers back in 1988, where he coined the phrase "imperial overstretch". It was a great read, but then the US embarked on a record-breaking expansion that lasted 10 years and saw Wall Street shoot up to over 11,000 points.

    But that great economic expansion turned out not to be so great after all, culminating in a wave of financial misreporting and outright fraud at Enron and WorldCom. The twilight of empires can last a long time, but judging from his reckless unilateralism and his economic vandalism, George Bush seems to be determined to do his level best to hasten that decline.

    Should those investors determine that they no longer can confidently invest in America, the means of paying back the runaway deficit will be largely removed. Thus, in short, yes MR. Bush has put America on the edge of long term catastrophe.

    Let us pray for another intelligent and fiscally responsible administration to oust this one and restore us to positive budgetary figures.

    http://news.bbc.co.uk/1/hi/world/americas/2317645.stm

    http://www.aflcio.org/aboutaflcio/ecouncil/ec02252003c.cfm
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    before i get bitten ...i admit to a limited understanding of all this economic stuff. just bits coming back to me ...i was aware of saddam and his euro oil. thats what got me to thinking. plus some guy in the street recently campaigning to keep britain out of the euro.
    i seem to have formulated my own worse case scenario which i find quite disturbing.
    the usa and the uk have made a complete bollox of overthrowing saddam. the french and germans in bad books with the us and both of them sick of britains arrogance and sucking up to the usa.
    the united nations treated with contempt and now bush has to go crawling back to them. no WMD'S as most sane people expected. no threat. bush on the road to financialy crippling america. iraq in turmoil ...which i imagine is going to spread far wider than iraq.
    eastern bloc nations joining europe. europe wanting to fuck nato off and build it's own fighting force ...create a lot of investment and wealth that would ,i'm sure. britain left on the side lines and no chance of joining the euro.
    the euro becoming THE ...currency which the arab world will only deal in for oil ...the us fucked and the uk fucked. a kind of pay back time for the greed and arrogance and lies. is it actualy possible or am i being to pessimistic?
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