Threat of switch to Euro currency inspired war

BSU DAILY NEWS ^ | 4.18.03 | Matt Sharp

[Enemy Of The State]

Threat of switch to Euro currency inspired war

April 18, 2003

Dear Editor,

Oil has been traded with U.S. dollars since 1971. Other countries must stockpile dollars to be able to purchase oil, which gives America the dominant economy. The only economic bloc to contest America's power is the European Union. Yet, the EU still has to hoard dollars to buy oil, making the Euro's power limited indeed.

Iraq switched to the Euro in 1999. Of course, America didn't take this seriously, since the Euro was relatively weak.

However, within two years the Euro was gaining on the dollar. Venezuela also has been thinking about making the switch. Now our government is scared.

Our government owes $12,000 per citizen of America. That's $12,000 times 280 million. Do the math! We haven't had to pay this, because our debt never reaches the bank. The world subsidizes us, and we keep printing more money for trading.

Now, what would happen if oil nations switched to the Euro? An almost overnight crash of our economy.

So, what to do?

Hmm...how about invade Iraq, force them back to trading oil for the dollar, and send a message to the rest of the world that the dollar is here to stay. To the optimists who say this war was for democracy and freedom, wake up. Our government put Saddam in power. In 1989, it gave him $1 billion in loan guarantees, when it knew he was gassing Kurds. Now we care about the Iraqi people?

Democracy? Please...what about the democratically elected leaders our government has killed? Lumumba and Allende come to mind. Democratically elected leaders overthrown? Does Bosch of the Dominican Republic, Ortega of Nicaragua, or Arbenz of Guatemala ring a bell?

We, the people, must stop the malfeasance of our government. We must demand justice, social equality, and true freedom, and do it now.

Matt Sharp

senior

[dighton]

Good catch. Here's a corrected link.

[alloysteel]

Clearly.

The overwhelming strength of the Euro was reason for the US to go to war? Why, then, was it about 2/3 of a BILLION dollars, in US currency, that was recovered in the blocked-up residence found by the USMC? If the Euro was so strong, those boxes would not have been filled with dollars. The US dollar is still recognized by a far greater portion of the world's population as the premier currency, and no other nation's currency is subject to as many counterfeiting attempts.

[AlaskaErik]

We, the people, must stop the malfeasance of our government. We must demand justice, social equality, and true freedom, and do it now.

We did stop it. The Clinton/Gore nightmare is over.

[Cicero]

This thesis is out there among some Bush haters, but also among the economic alarmists and doomsayers. I don't believe that either oil or the dollar was the primary reason for our war against Iraq, but they may well be among the secondary considerations.

As for oil, it's perfectly true that we need to deal with one of radical Islam's most powerful weapons: its control over most of the world's oil reserves and its ability to undermine the world economy. Saudi Arabia has the power to virtually destroy the world economy almost singlehandedly, if they become desperate enough; and Saudi Arabia also happens to be at the very root of Islamic terrorism. One reason we had to go into Iraq first is that we had to secure the world's second-largest oil reserves (plus Kuwait) before we could venture to confront the Saudi problem.

Yes, the Euro is sick; but recently the dollar has been even sicker, since it is has been declining against the Euro and has broken through the support level. That is mostly because of our huge and growing balance of payment deficits and our current economic malaise.

Malaysia has been leading the way toward a gold-based dinar, on which oil payments could be based, hoping to replace the dollar in trading among the Muslim states, and I don't doubt that France is trying to lead the way toward a Euro-based world economy, and that Chirac has been secretly working with the Arab countries to implement this dream.

Gold and the British Pound used to be the two chief mediums of exchange. They were replaced by the U.S. dollar after Britain suffered a string of deficits going back to 1914. Nothing says that the dollar will not similarly be replaced if we continue to run huge balance of payments deficits and if the world loses confidence in the American economy as a place to park their funds.

So, there is likely a smidgen of truth in this article. There were many reasons for fighting the war against Iraq. This may be one of the subsidiary reasons. Like the need to preserve our oil supply, it is a perfectly legitimate national security consideration, although not enough in itself to justify fighting the war.

[LS]

Sigh. Every time I think the "youts" of the nation may actually have it together, someone like this nincompoop pops up. Our best and brightest are thousands of miles away, still trying to sort out the "good" Iraqis from the "bad." This dipwad ought to take the tour.

[Mike Darancette]

Iraq switched to the Euro in 1999.

How many boxes containing Millions of Euros have been found?

[JZoback]

Post# 21 Excellent read

[stripes1776]

Threat of switch to Euro currency inspired war

If this is the sort of critical thinking they teach in college these days, it makes you think a college degree isn't worth much any more.

I heard some weirdo on "Coast to Coast" (Art Bell's program without Art now) say the same thing. Maybe the guy was another graduate of Ball State.

[Tokhtamish]

But the reasons for switching to the euro by the oil countries are not economic. They are political. It is economic warfare against the United States, striking the only way they can. If Saudi Arabia could freely switch to the euro it could dictate our Mideast policy.

What if a wave of hyperinflation means that America can no longer afford a world class military ? What if it means America becoming an IMF basket case like Argentina and baby boomers spending their golden years scrounging in garbage pails ? I support the war but I agree that this is a very hard economic self interest rationale that was totally compelling.

[VOA]

I don't know macroeconomics from shinola...
but I'm getting the feeling that the Democratic Party/Anti-War/Anti-Dubya
partisans are going to make the "Clinton-Conspiracy" extremists look
very, very sane.

[lilylangtree]

Something similar was reported on a radio show called "Goldline" about 8 weeks ago. That the EU is fed up with having to trade in dollars. And Mexico was having a fire sale to unload dollars. Plus in June or July some countries (2 or 3) automatically switch to trading in dinars. Apparently, in the world market in order to trade, dollars is the currency, which in turn makes the US stronger financially. However, the EU and others are trying to break that tradition. Don't entirely discount this info. It's worth watching.

[Hillarys Gate Cult]

This urban legend about oil rich countries switching to the Euro shows up every three to five years in those Middle Eastern countries who's currencies are tied to the US dollar. It began when petrodollars started flowing to those countries (about 30 years ago ) , and won't end anytime soon. Not saying that it won't ever happen, but it's usually just wishful thinking on some European's part. I'm surprised anyone fell for it.

Before the Euro, the rumor usually had those countries switching from the dollar to whichever currency was trading the strongest at that time. The British Pound, Swiss Francs, or the most popular, German Deutschmarks were the front runners.

[Republican Wildcat]

Here's another one. You can leave feeback on their forum below the article (click on source link).

[Brad’s Gramma]

Who ME? Little ole innocent ME leave feedback? Send an email?

Awwwww.......come on. You must have me confused with someone else BUMP! :-)

[John Valentine]

If you are posting from Indonesia, you are staying up late.

Really, it makes little or no difference whether Indonesia denominates its debts in Rupiah, Dollars, Yen or Euros.

These are all paper transactions, and are dwarfed by the enormous quantity of money exchanged every day -1.2 TRILLION dollars. This dwarfs the daily trade in securities on all worldwide markets combined, and dwarfs by an even huger amount the total daily trade in oil.

By the way, I also have a home in Indonesia, but the press of my own economic requirements keeps me away too much of the year...

[ApesForEvolution]

The national currency of Iraq is not the Euro. The international oil wholesalers and retailers almost exclusively base their indexes on the US Dollar.

Big difference.

About the rest of the story, a little truth mixed with a bunch of hooey makes for an opinion I guess.

[ApesForEvolution]

Yes, there is truth in this. The *ONLY* thing backing the US Dollar, the favored index currency for world trade, is the sword.

[Former Proud Canadian]

This kid spent 16 years becoming educated and came to this conclusion? Something is very, very wrong here.

[Princeliberty]

Saddam was allied first with Soviet Union
when he came to power.
Then we through Iran supported Kurdish
rebels who really had Saddam on the ropes.
Then Saddam cut a deal were he stopped
be a Soviet ally and we cut off aid to
the Kurds.

[AFPhys]

Thank you for that excellent link (and very long read)...