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To: albyjimc2
The dollar reserve currency gives the US government a license to print money without fear of recourse.

Every time the price of oil goes up, the US government can print and spend more dollars because they will be soaked up by a world that needs more dollars to pay for oil.

If Euros can be used to pay for oil, then the US government can no longer indiscriminately print dollars.

All Americans would have to start living within their budgets.

For a country that needs ever higher levels of debt to pay off old debt, that is a prescription for bankruptcy and dramatically lower standard of living.

Think Argentina.


BUMP

22 posted on 02/25/2006 5:24:55 AM PST by capitalist229 (Keep Democrats out of our pockets and Republicans out of our bedrooms.)
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To: capitalist229; All

Appears you would have to explain Argentina to some of the posters here. They simply do not get it. Nor the fact that someone has to be willing to buy Dollars if there is someone who starts selling them. A run on the Dollar (like a run on a bank) will plummet it down.

So far the "responsibly minded" world has bought up extra dollars even though they no longer need the amounts available - just to keep the prime currency in place and viable. They have huge surpluses of Dolars, way beyond theri needs because of invtervention to keep the dollar afloat. Neo-Iran is not only irresponsbile but hell bent on doing harm. The people in charge have lived off meagre salaries and have no personal wealth to defend nor care about their citizens - and they win national wealth when oil and natural gas become primary barter items in a world where currency has little or possible no value. They win if that happens, not lose.


40 posted on 02/26/2006 9:26:42 AM PST by FARS
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