Know a bit more about petro-dollars

[Andy]

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.

 

[Pengwuino]

http://en.wikipedia.org/wiki/Petro-dollars

Doesn't look like there's anything to it other then defining a source of income. Never seen anyone say "wheat-dollar" or "car-dollar" though...

 

[Andy]

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?

 

[Pengwuino]

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.

 

[Andy]

Is this thread really boring enough for only you to reply to it?

 

[Pengwuino]

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.

 

[Andy]

yea, think i will dump it in the politics section for a laugh, try and cause a fight.