Quote:
Originally Posted by island911
The Saudis can, at any moment, stop selling oil to the US. Or, stop taking USD for oil sold.
Perhaps they want to drink the oil, rather than have the goods and services of the USA. 
There is oil all over this globe. The Saudis are just one source. |
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foreign holders of the USD are not going to shoot themselves in the foot and dump USD enmass.
Oil consumption vs oil production is tight even though the world has suffered through a global depression and not recession. The world let alone the industrial nations DEPEND ON OIL TO FUNCTION...the USA would collapse in a week without oil being imported (the USA would run out of oil being held in reserve a week later). Without oil production you would be living like your forefathers did in 1700. The world would be in a veritable new Dark Ages...
The Gulf states are heavily invested in the USA and Europe, they are not going t shoot themselves in the foot. HOWEVER it is becoming apparent to them and the rest of thee world that their perception of American financial omnipotence was a myth which has been dispelled. No longer does the world look up to the USA for it's financial expertise...they have seen behind the curtain with this crisis. The world is going to start moving away from the USD as the reserve currency..if for no other reason to protect themselves from another debacle such as the one the world has just gone through.