China could collapse the US Dollar

i'll believe the euro has truly arrived when movies start wanting ransom in euro rather than dollars ;)
 
JayM said:
Why hasn't it happened yet? Accepting euro instead of USD for transactions is not the most difficult thing to achieve.
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Because countries that try it get added to the Rogue Nation list faster than you can blink. Iraq did it, and got invaded. Iran has threatened to do it, and they've got the US breathing down their necks as well.

People say the Iraq war was just about oil, and it's true that it did have certain benefits to certain members of the US upper class, but the fact of the matter is that the selling of oil in Euros could have wrecked the US economy.

Russia has bemoaned the fact recently that they have to trade in dollars for all their oil deals.

Trading oil in dollars forces every country to keep a US currency reserve. This increases the value of the Dollar artificially. It's not hard to imagine what would happen if countries were no longer compelled to have at least some dollars on hand.
 
If OPEC decided they wanted to price in euro you think the US would invade each of those countries and put them on a rogue nationsl list?
 
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Xarog said:
Because countries that try it get added to the Rogue Nation list faster than you can blink. Iraq did it, and got invaded. Iran has threatened to do it, and they've got the US breathing down their necks as well.

People say the Iraq war was just about oil, and it's true that it did have certain benefits to certain members of the US upper class, but the fact of the matter is that the selling of oil in Euros could have wrecked the US economy.

Russia has bemoaned the fact recently that they have to trade in dollars for all their oil deals.

Trading oil in dollars forces every country to keep a US currency reserve. This increases the value of the Dollar artificially. It's not hard to imagine what would happen if countries were no longer compelled to have at least some dollars on hand.
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So what's going to change, and when? You said "watch it happen".
 
milomak said:
If OPEC decided they wanted to price in dollars you think the US would invade each of those countries and put them on a rogue nationsl list?
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Make perfect sense :D

I can see Algeria, Angola, Indonesia, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela all being invaded. :cool:
 
milomak said:
If OPEC decided they wanted to price in euro you think the US would invade each of those countries and put them on a rogue nationsl list?
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OPEC is not interested in the currency - their only concern is the commodity.
 
So if it happens in 20 years [the switch to the Euro instead of the US$], would you still say "I told you so." Give us a timeframe for when they should've, in your mind at least, switched to the Euro. Because if you don't give us a timeframe, then you're being like one of those people who magically "predicted buildings will fall on September 11".
 
uhm.. that's the usual globalisation tricks of trade so to speak.. much like the US and Europe protect their farmers with subsidies..
 
milomak said:
Are you suggesting that OPEC wouldn't care if oil was priced in Zim dollars?
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rofl. you really are taking things too seriously. OPEC do not care whether the world pays US dollars or Euros for their oil - as long as their price is paid ;)
 
So you post a 2004 article to support what view exactly? That Opec in the past contemplated switching to Euro? Anyway, it would seem that the push was not for a full switch, but more for an either/or...
Several members of the Organization of Petroleum Exporting Countries are seeking formal talks on using the euro, as well as the U.S. dollar, when determining price targets for crude, a senior oil minister within the cartel said Monday.
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just showing you that OPEC did in fact care enough to consider what currency (or currencies) oil should be priced in.
 
milomak said:
If OPEC decided they wanted to price in euro you think the US would invade each of those countries and put them on a rogue nationsl list?
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That's highly unlikely. Like Bobbymac said, Opec cares about making a profit.

(Besides, the majority of the pro-us governments inside the M.E. largely depend on American support to retain their power.)

JayM said:
So what's going to change, and when? You said "watch it happen".
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In the next few years, unless America does something drastic to deal with their debt. Eventually the house of cards WILL fall, and when that happens, the only thing the US Dollar will still be on parity with is the Zim Dollar.

Dominic Rooney said:
So if it happens in 20 years [the switch to the Euro instead of the US$], would you still say "I told you so." Give us a timeframe for when they should've, in your mind at least, switched to the Euro. Because if you don't give us a timeframe, then you're being like one of those people who magically "predicted buildings will fall on September 11".
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It's not hard to predict that it's going to happen - the writing is on the wall. But you're absolutely right that it's most likely going to take quite a few years to happen... unless something drastic happens like China dumping their Dollar reserves into the market.
 
OK Zarog, let's take a long bet. I bet that the US dollar will be worth more than the ZIM dollar in 5 years time, even if the national debt stays over 8 trillion USD (that should be long enough to cover your "in the next few years" statement, which is still very vague). Hell, I'll even bet that it will be at greater than parity to the ZAR. I'll let you choose one of the two, because I'm a nice guy. Let's make the bet a nice round figure - say R100K. (Sounds like a lot now, but in 5 years it'll be chump change).

If the US debt shrinks below 8 trillion, bets are off. If ZAR or ZIM$ > USD (your choice) in 5 years, you win.

Keen? I'm willing to pay the legal fees to get this in writing - all you have to do is sign, and show up with the money when you lose. ;)
 
JayM said:
OK Zarog, let's take a long bet. I bet that the US dollar will be worth more than the ZIM dollar in 5 years time,
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Learn to recognise hyperbole. And while you're at it, learn to read. It's Xarog.

Though you did point out one unintended inconsistency. I meant to say the depreciation rate will be at parity.

even if the national debt stays over 8 trillion USD (that should be long enough to cover your "in the next few years" statement,
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Which actually refers to about 2 decades...

which is still very vague).
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With good reason.

Keen? I'm willing to pay the legal fees to get this in writing - all you have to do is sign, and show up with the money when you lose. ;)
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Not really, since this bet would have nothing at all to do with what I was saying...
 
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