If the dollar keeps on falling, than why are world business still conducting business in dollars? Why are countries reserves still held in dollars? Please can someone share the mustery?
RE:I WONDER WHY
by Blazer on Jul 24, 2007 03:02 AM Permalink
ASEAN Countries tried in 1997-98. US just killed their economy. Saddam Tried, Iran trying.
In today's reality US economy is Bad and US is aware of that. No Country can be economically no 1 for ever and it looks like US decline has started unless they come up with something new.
RE:I WONDER WHY
by Zameer Deshmukh on Jul 24, 2007 02:16 AM Permalink
Some countries have already started conducting business in currancies other than dollar. More will follow the suit. This doesnt happen in ver short period of time.
RE:I WONDER WHY
by Maharaj Malik on Jul 24, 2007 02:36 AM Permalink
the simple answer golder drops are pegged to usd..the moment the focus shift from usd to other currency like it has started in some case
RE:I WONDER WHY
by indiman on Jul 24, 2007 03:07 AM Permalink
This is because oil can be only bought in US dollars at the only two oil exchanges in the world- The New York Mercantile exchange and the London exchange. This is due to secret agreement between OPEC led by Saudi Arabia and the United States after 1970s. So the US can keep printing billions of dollars and pump into the world system but the world countries have to keep buying the dollar inorder to buy Oil. This is why the Saudi governments lending rate exactly match the US lending rates. Saddam Hussein tried to throw a spanner in the works by saying he was going to sell oil in euro and he was taken out. Iran has gone one step furhter and set that they are going to set a oil exchange in Kish Island in Iran where Oil will be sold in Euros or the local currency. That move if that happens will shake the world and importantly US thats why all the war rhetoric against Iran. If Iran gets the nuclear bomb I think they will put their plan in place, thats why the US and Saudi Arabia is pulling all stops to prevent that. Till the day three or four major oil producing countries can say we will sel Oil in another currency all the countries in the world have to keep a good chunk of dollar reserves and the US will keep printing dollars and spending lavishly. This might be a reason why the US hasnt really pushed on Alternative sources of energy other than Oil because that will be a big blow.
RE:I WONDER WHY
by Ek Hindustani on Jul 24, 2007 03:22 AM Permalink
I was contemplating of throwing some light on the issue, but you coudlnt have said it and summed it better Indiman. Good analysis. I back this up. This is precisely what has happened. Also I'd like to add that the Venezuela's President is wanting to do the same, trade oil in Euros, thats why they are after him as well. The day Oil is traded in Euro's that will mean an END ot the US super power status. and that is what they are defending in the name of war on terror and war on islam as it is easier to occupy and control people under that guise for PR purposes and to fool their own citizens and the worlds. rather than go all out and say they are going in for oil. Its simple, if they really wanted to fight wars for human rights there are hundreds of other places they can go and occupy but do they do that. You guessed it right . NO. Anyhow. Its important for India to be smart here, as the coming super power and not get blown over in any scenario and to diversify, RBI should start buying EURO's and keep a decent bank of it. My two cents. Hindustan zindabad.
