Quote:
Originally Posted by tabs
Is this supposed to be something new? Go back in the achives of this Board for the past 5 years and you will find several Threads I have written on this topic. Very simply put, the US because it is the currency that oil trades for. it is able to manipulate the currency to the benifit of the US.
Everybody has to have piles of USD onhand to buy oil. So those USD are never traded they are held in reserve. So we can print more, it also puts other nations in a position of having to support the USD or risk having those USD become worthless. Get the picture.
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I noted that the video is from 2007 -- and didn't mean to suggest it is a "new" topic for the board. I just think, looking toward 2009, it is a good subject to revisit.
As for the USD being the "reserve" currency for oil trading -- there is no need for other countries to maintain this position -- and that's the whole point of the video.
What happens when other countries decide that they don't like our "printing" new dollars and decide to "cut their losses" on their dollar holdings and buy oil (and other goods) using other currencies?
Do you think our "printing" can go on indefinitely without other people in the world reacting to it
eventually?