Iran Prepares the way for attack on Dollar supremacy

I took notice of this one.

www.mehrnews.com...

Could cause the US a lot of financial problems possibly destabilization of the currency. If this causes China to bail out of the dollar.........

Worrying.

Would the effect of the Euro replacing the Dollar lead to a collapse of the US currency worlwide with the need to possibly devalue. With Russia, China, Middle east oil producers poised to go for the Euro. Could this not be seen as an attack on the US. Well timed to cause the most problems internally in the US. 2006 will be a watershed year for the Dollar, hope it has water wings.

Or is it all a load of tosh. Any experts in the field points of view greatly appreciated.

Wow. I already knew that China could economically destroy the US through it's balance of payments. The Chinese hold a lot of US paper. But this raises an important issue. If Iran starts selling oil for Euros and, most importantly, they get other OPEC nations to go along with this, the dollar will lose it's supremacy and could cause China to call in all of that paper that it holds over the US.

This certainly could cause true economic mayhem not only on the world markets but on the US stock exchange as well. This is a story that is certainly worth following.

Well I guess Bush better hurry up and Liberate Iran just like Iraq before they go Euro.

I tell you who do this people think they are to go against the mighty dollar.

[edit on 7-12-2005 by marg6043]

Originally posted by benevolent tyrant
Wow. I already knew that China could economically destroy the US through it's balance of payments.

Apparently, in your astonishment and revelation, you somehow forgot that the American economy is the LARGEST consumer of Chinese goods, and that, if the US economy gets destroyed, the Chinese economy will likewise be severely crippled or destroyed.

Be sure that some of you remember this, because the US economy dictates the world economy: ECON 101. If the US economy becomes severely crippled or destroyed, not only will the Chinese economy implode, the world's economy will do likewise. What happened to Germany after WWI should be a lesson to all of you on this matter, when applied to the severe dis-stabilization of economies [ try reading some on John Maynard Keynes on this]. There is a repercussion and it is based on simple cause and effect.





seekerof

Its quite easy for a country to sell dollars be it in millions or billions. If Iran goes Euro for oil, then China (a major buyer of iranian oil/gas) would need to convert some or a large chunk of its dollar reserve into Euros. If this did have an effect on the Dollar in theory it would make lots of other currencies stronger against the dollar.

Weaker dollar, inflation, well you can get the picture. I'm looking at this from a neutral point of view - If most oil producing countries Russia, Iran, Venezuela, go Euro this surely would have a effect on the dollar. In britain back in 1992 we had black wednesday.

www.answers.com...

my own point of view was leading up to this my mortgage payments skyrocketed and things got expensive. This came about by a attack on the pound. My post kinda relates to is it an attack on the dollar and what effects if any it will have. Does it suit chinas purpose to continue to have a strong dollar. Will it have any effect if the oil standard is Euro rather than Dollar.

www.321energy.com...

Only a matter of time to attack on the dollar.