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

[John Valentine]

Once again, by his adhreence to hooey, "Apes for Evolution" proves anew that there is truly room left for growth, evolutionary or otherwise, even in the "higher" apes.

[ApesForEvolution]

Are you disputing what I asserted in post 37?

[John Valentine]

Yep. Sure am. In spades.

[ApesForEvolution]

Then, please - by all means, share what you know about world currency and trade...

[John Valentine]

You are the one pronouncing that the economic theory and practice of the past 200 years is wrong and should be stood on it's head, so why don't you go first.

But, I'll endorse the article linked in post 21 above as quite representative of mainstream thought on the subject.

[Publius6961]

It's way too complicated for this useful idiot.
That move was not Iraq's.
Clearly it was the pressure from the two self-perceived strongest members of the E.U.

I'll let the readers guess who that might be... he he he.

The "prestige" factor alone would maintain their illusions.

[ApesForEvolution]

That's what I thought. For the record, the monetary system in both theory and practice changed dramatically in this country just 70 short years ago. The nation was taken off the gold reserve. The dollar only remains as strong as the nation's strength is to dominate our world. After Sept. 11, 2001, it appears that the dollar can be weakened very substantially and very quickly.

[John Valentine]

I was composing this reply a few hours ago when I hit a mystery key on my computer and sent the whole thing to oblivion.

Look, anything, gold, the money of any nation, you name it, is worth exactly what others are willing to pay for it, no more and no less. Gold, schmold, it makes no difference except to maintain monetary discipline. Gold is certainly not a necessary adjunct to monetary stability.

The Euro, for example, is not backed by anything, not even a nation. As money goes it is pure hype and little else, but it has been gaining against the dollar for some time.

I for one think that is a very temporary situation, for many reasons, and the US Dollar will reestablish its value vis-a-vis the Euro within the near term.

But whatever its value at any moment it is purely reflective of the market in its endless chase of an elusive and ever disappearing equilibrium.

The "sword" has nothing to do with the value af any nations currency except indirectly, as a nation is perceived to be strong and enduring. But if that were the ONLY consideration the Euro would be 40 cents US, as Europe now stands exposed as totally inept militarily and politically.

But, just wait. Nature's balance will reassert itself, and quality will out.

But don't get hung up on gold. Gold has no more absolute intrinsic value than paper. It is all in the perception of others that value is found.

If the paper is not kited, it will be good. Gold can be debased too and often has been, and prople have been burned bad over the years.

I took issue with your assertion that the value of the dollar is somehow enforced by the sword. I still take issue with that. I think it is utter nonsense.

If the US Dollar has any value it is due to trust and faith in the sincerity and honor of the United States, as well as in it's strength. It is not a matter of "enforcement" by the sword.

[nopardons]

The goldbugs never learn.

You are correct; gold is only worth whatever someone says it is and THAT has changed many times, throughout history. Some peoples thought/think certain shells are more valuable than gold. In other times and other places, it was pepper.

And as for this silly letter to the editor, by an empty headed kid,it's apparent that he's never taken an eco class, nor one in history.