| How much of a threat to American power and way of life would it be if countries traded oil in euros instead of the dollar. At the moment America is getting a free ride on the back of this trade, but if the euro takes off (and in just 6 years of existance the euro now account for 20% of world trade) then all that debt that America owes could cause BIG problems to the American economy.
So who's threatening to trade oil in euros? Iraq started to but after the overthrow of Saddam Hussein, it changed back to trading in dollars (now why and who would have done that?). Venzuella, Iran and North Korea are other countries that have said they want to change to the euro.
"the impact of the Iran oil bourse on the American dollar—and U.S. economy could be worse than Iran launching a “direct nuclear attack.”
Iran didn't change to euros this March but that doesn't mean to say they won't. If it's that much of a threat to American power, is military intervention in Iran and regime change justified?
| quote: |
Will Iran’s oil kill the U.S. dollar?
9/14/2005 3:45:00 AM GMT
If Iran launched its IOB, the U.S. dollar will weaken and the euro strengthen
Speculations have begun regarding whether the proposed March 2006 launch of the Iranian oil bourse (IOB), will become the catalyst for a significant blow to the position of the U.S. dollar?
Iran is about to begin pricing its oil in euros. Unfortunately, just about everyone would benefit--except the United States- Without some form of U.S. intervention, the euro is going to establish a firm foothold in the international oil trade.
The U.S. dollar has been the strongest currency of the world for more than half a century, with about 70% of percent of all currency reserves in American dollars.
http://www.aljazeera.com/cgi-bin/re...service_ID=9752
|
| |
