Posted on 07/31/2009 7:04:41 AM PDT by SeekAndFind
This is a Marxist explanation for American wealth that has been embraced by State and Defense Department chuckleheads with a vested interest in huge foreign aid programs and overseas military bases. The US had the highest per capita income in the world and the smallest military spending among the major countries before WWII. That is why Europeans (as well as people from other continents) flooded into the country by the tens of millions.
The Chinese, and everyone else, need dollars to buy oil. When and if they don't need dollars to do that, then everyone can start wringing their hands.
What prevents them from doing it? They can get together and trade oil for sticks if they want to do so.
It's an excellent question. The answer: The US Military.
In 2001 Saddam started pricing his oil in Euros, this was a godsend to Gemany/France, but would have destroyed the US of A if other OPEC countries followed (Iran is still trying).
But now the situation is rectified: Iraq, Kuwait and Saudi which represent most of the world's oil supply now all price in dollars.
And will for the forseeable future.
You are delusional. If China and Russia decided to price in another currency, there is nothing we would/could/should do about it militarily.
China and Russia don't control OPEC which controls world oil, which is priced in dollars.
What about their friends, Iran and Venuzuela? You’re right. Oil will always be denominated in USD. That’s just the way it is an it’s very unlikely it will every change.
Iran, Venuzuela and Russia are still trying to price in Euros or some alternative. In 2006 Iran stopped accepting dollars for oil and started an "oil bourse" to compete with NYMEX, I don't think it's working so well. The problem is they don't control enough of the world's oil to make it work.
You’re right. Oil will always be denominated in USD. That’s just the way it is an it’s very unlikely it will every change.
Yup. We've got OPEC surrounded: boots on the ground and Nuclear Aircraft carriers a blink away.
So the dollar is on the "oil standard" and despite Soros' best efforts, the fears that it's going to collapse any time soon are exaggerated.
I was being sarcastic. I find it laughable that you think that our military is going to fight to keep oil denominated in dollars. It makes no sense on several levels. Good luck.
It makes perfect sense and it's exactly what is taking place in Iraq and the mid east in general.
Why do you think our military has troops in Iraq, Saudi Arabia and Kuwait? Why are there US Carriers all over the Persian Gulf? To promote democracy?
HA.
No doubt they are there for several reasons. One of the reasons is undoubtedly to keep oil flowing. This is a different issue from keeping oil denominated in USD. For some reason you seem to think that if it isn’t denominated in the dollar it will not allow us access to buy it. Not sure why you think this other than you don’t know what you’re talking about. bye.
No doubt they are there for several reasons. One of the reasons is undoubtedly to keep oil flowing. This is a different issue from keeping oil denominated in USD. For some reason you seem to think that if it isn’t denominated in the dollar it will not allow us access to buy it. Not sure why you think this other than you don’t know what you’re talking about. bye.
No doubt.
One of the reasons is undoubtedly to keep oil flowing. This is a different issue from keeping oil denominated in USD. For some reason you seem to think that if it isn’t denominated in the dollar it will not allow us access to buy it.
That is NOT what I said nor what I think. Try some economic and reading comprehension courses.
Bye.
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