- #1
Andy
- 73
- 12
Watched a TV programme the other ngiht about conspircay theories to do with the iraq war. After watching this i was still unsure as to what the term petro-dollar meant so had pengwuino look it up for me. He found this,
http://en.wikipedia.org/wiki/Petro-dollars
which contains this.
Now then I'm absolutely useless with economics but the other night the tv programme claimed that if the Oil was sold in euro's rather than the dollar then it could bankrupt America. That seems abit far-fetched to me but does that sound possible to anyone out there? And does it sound like Bush would go to war not to dfeat terrorism but to safe the US economy?
http://en.wikipedia.org/wiki/Petro-dollars
which contains this.
More recently, speculation has arisen that OPEC may switch from the US dollar to the Euro, inaugurating the Petroeuro. So far, OPEC has resisted this move although some OPEC members (such as Iran and Venezuela) have been pushing for a switch to the Euro. During Iraq's Oil-for-Food Programme, Saddam Hussein did switch to the Euro and some commentators claim this switch was another factor contributing to the 2003 Invasion of Iraq. As noted by Cóilín Nunan, "A move away from the dollar towards the euro could have a disastrous effect on the US economy" because the US's negative balance of trade is largely offset by its role as a reserve currency.
Now then I'm absolutely useless with economics but the other night the tv programme claimed that if the Oil was sold in euro's rather than the dollar then it could bankrupt America. That seems abit far-fetched to me but does that sound possible to anyone out there? And does it sound like Bush would go to war not to dfeat terrorism but to safe the US economy?