Quote:
Originally Posted by Agamemnon
I've heard about this issue during some economics classes in university, that some countries are interested in switching to the Euro for their 'baseline' trading currencies, and divesting themselves of their dollars. I'm not sure if this is a solely-Looger created notion. I've also heard that if a lot of countries were to do this it would cripple the US currency as there would be a LOT of outstanding dollars in the world held by other countries for sale.
But then, I didn't pay a lot of attention in economics classes (BORING), so I probably don't have a clue.
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I no little about economics but this is what I understand.
This issue has been brought up as a reason for the invasion of Iraq as Saddam was going to start selling oil in Euros instead of US dollars. Iran is threatening to do the same. The Saudi Arabia and OPEC sell oil in US dollars thus forcing everyone to buy US dollars in order to purchase oil. If OPEC switched to the Euro, the US is in big trouble.