[OPE-L:8448] "an oil CURRENCY war"

From: Hans Ehrbar (ehrbar@econ.utah.edu)
Date: Sat Feb 08 2003 - 22:14:57 EST

Response to Jerry's [8445]:

I talked to several people about the currency war thing, and
they seemed unconvinced, while to me it was such a
revelation to hear that Iraq had switched to pricing their
oil in Euros.  I have been thinking about it for a long time
how the USA gets away with having their national currency
serve as world currency, and one of the ideas floating
around in this respect is that they are a debtor who cannot
go bankrupt because they have the guns.

Until now I had been thinking that the anti-war movement
really saves the US ruling class from themselves because the
war on Iraq is not in their best interest.  For the same
reason I had also thought that the anti-war movement has a
small but real chance to stop the war.  But punishing Iraq
for switching to the Euro, and at the same time grabbing so
much oil under their own control that they can make OPEC
powerless and can prevent other OPEC nations from switching
to the Euro, is a war goal which suddenly makes the war on
Iraq a thoroughly rational thing to do for the US
ruling class.  If they do not follow through, they may lose
the dollar hegemony in a matter of five years, especially
after all the political resentment against the US that Bush
has set in motion.  This can be catastrophic for the US
economy.  Not only is the US economy addicted to oil, they
can also no longer survive without the privilege of being
able to print dollars and buy everything in the world with
their paper dollar.  And the world wide public, even those
who are most anti-war, has no idea that this is why they are
going to war!


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