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coalition

False economies.

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[QUOTE=coalition;418226][SIZE=+1]How to save the EURO, and get rid of the US Derivative Albatross around the neck of the World.

The effect of an OPEC switch to the euro would be that oil-consuming nations would have to flush dollars out of their (central bank) reserve funds and replace these with euros. The dollar would crash anywhere from 20-40% in value and the consequences would be those one could expect from any currency collapse and massive inflation (think Argentina currency crisis, for example). You'd have foreign funds stream out of the U.S. stock markets and dollar denominated assets, there'd surely be a run on the banks much like the 1930s, the current account deficit would become unserviceable, the budget deficit would go into default, and so on. Your basic 3rd world economic crisis scenario.[/SIZE] [SIZE=+1]The United States economy is intimately tied to the dollar's role as reserve currency. This doesn't mean that the U.S. couldn't function otherwise, but that the transition would have to be gradual to avoid such dislocations (and the ultimate result of this would probably be the U.S. and the E.U. switching roles in the global economy).
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[FONT=Times New Roman][SIZE=3][COLOR=#000000]In the aftermath of toppling Saddam it is clear the U.S. will keep a large and permanent military force in the Persian Gulf. Indeed, there is no "exit strategy" in Iraq, as the military will be needed to protect the newly installed Iraqi regime, and perhaps send a message to other OPEC producers that they might receive "regime change" if they too move to EUROs for their oil exports.[/COLOR][/SIZE][/FONT]
[FONT=Times New Roman][COLOR=#000000][SIZE=4]Iraq was destroyed for only one reason, to [/SIZE][SIZE=3]protect[/SIZE][SIZE=4][SIZE=3] the Oil Dollar. Iran, and [/SIZE]coincidentally[SIZE=3] the EURO, is being [/SIZE][/SIZE][/COLOR][/FONT][FONT=Times New Roman][COLOR=#000000][SIZE=4]targeted by the US for daring to allow IRAQ and IRAN to replace the hierarchy of the $ as the single trading currency of OPEC. The $Trillion US Intelligence Budget is concentrated upon protecting the $ by destabilising any country who want to escape the tyranny of the $ Dollar. Shouls the EU not be countering this despotism with equal ferocity as opposed to entering Coalitions against Middle Eastern OIL suppliers, who only want freedom from US Empire domination.
It is beyond time to clean out the Augean stables.[/SIZE][/COLOR][/FONT][/QUOTE]
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