News Article : The Shadow War : Euro vs. Dollar

[Mr. Robin Parsons]

Originally posted by damgo
I think the USA has such a successful economy mainly because
1) it has a stable, established government
2) it has a long history of relatively laissez fair capitalism
3) it has long-standing and trusted financial institutions
4) there is an expectation/culture of (relative!) trust that the system will work as designed (function of the above)
5) it has lots of natural resources and a big population

All but #5 also hold for most of the other highly successful modern economies -- Japan, Australia/New Zealand, Western Europe, etc. Siv, if modern US economic success rested on the use of the dollar as a global currency, why would these other countries be doing just as well? (or almost as well)

All the facts I listed should be easily checkable... which do you think are false?

Most of the rest of those countries do do well, because they are partners with the US, Trade partners, just like Canada.

But a better question, one that might reveal the answer you seem to be looking for, is why some of the Other countries do NOT do as well, that answer might just lead you to the realization of just "Why" it is so important, to the American economy, to keep the Greenback as the Fiat currency, in the Oil business!

 

[damgo]

For those of you interested in the actual consequences of the US account deficit and the currency OPEC uses, here are two good speeches to start with. Not as catchy or easily digestible as grand conspiracy theories, alas, but far more interesting IMO:

The U.S. Current Account Deficit
Gov. Donald Kohn, to the 12th European Banking Congress, 11/22/02
http://www.federalreserve.gov/boarddocs/speeches/2002/20021122/default.htm

The Choice of Currency for the Denomination of the Oil Bill
Mr. Javad Yarjani, OPEC dept head, Oviedo, Spain, 4/14/02
http://www.opec.org/NewsInfo/Speeches/sp2002/spAraqueSpainApr14.htm