Know a bit more about petro-dollars

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The discussion centers on the concept of "petro-dollars," which refers to the revenue generated from oil sales that are typically conducted in U.S. dollars. Participants express curiosity about the implications of switching from the dollar to the euro for oil transactions, particularly in relation to OPEC's potential move towards a "Petroeuro." Some members highlight that this shift could significantly impact the U.S. economy, as the dollar's status as a reserve currency helps offset the country's trade deficit. The conversation also touches on historical instances, such as Saddam Hussein's switch to the euro during the Oil-for-Food Programme, which some believe contributed to the 2003 invasion of Iraq. While there is skepticism about the claim that a complete transition to euro-based oil sales could bankrupt the U.S., participants agree that it would have noticeable economic repercussions. The thread also includes light-hearted banter about the lack of engagement and potential for more heated discussions in political forums.
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know a bit more about "petro-dollars"

Think this is the right place for this thread but please move it if needs be wise mentor person.

Just watched a really interesting programme about a conspircay theory on the iraq war. Just wanted to know abit more about "petro-dollars" but i haven't got time to search the web for it. Thanks people.
 
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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.
Thats quite interesting, I'm absolutely useless with economics but last 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?
 
Andy said:
Thats quite interesting, I'm absolutely useless with economics but last 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?

It's far-fetched, but there would indeed be noticable impacts. It's probably less now because the dollar (as far as I've noticed when i was even able to notice) has been gaining strength vs. the euro.
 
Is this thread really boring enough for only you to reply to it?
 
Andy said:
Is this thread really boring enough for only you to reply to it?

My penguiny stench is scaring people off. You'd probably get 100x more responses if you toss this in P&WA so we can hear how Bush is to blame for something related to it.
 
yea, think i will dump it in the politics section for a laugh, try and cause a fight.
 

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