 |
PM |  | |
Quote | | |
Reply | | |
Full Topic | |
| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
| Posts: | 6399 |
| Status: |
Offline
|
| Mana: |    |
One barrel of oil contains a measurable amount of power and therefore a measurable amount of purchasing power and as such oil has become a global accurate currency.
When the dollar is no longer chosen as the currency used in oil trading the purchasing power of the dollar will no longer have that measurable amount of power that is provided by oil power.
What happens next?
Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.