Quote:
Originally Posted by Linkster
as soon as the rest of the OPEC nations convert to not accepting US Dollars - which one has already done recently - and only accept Euros for oil contracts - all support for the US economy will be gone.
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That is NOT going to happen and even though you won't believe me I'll tell you why.
Most OPEC nations take their oil profits and invest them in US treasuries and US denominated securities.
Their portfolios are massive. They can't divest themselves of dollars and switch to another currency without simultaneously driving the value of their assets into the ground.
They're not going to do anything to hurt the US economy while they own so much US debt.
They're in the same boat with us and if it sinks we all drown. So it will be dollars for oil for a very long time.
Plus the idea that the only reason there is support for the US economy is because oil is traded in dollars is ludicrous. We have the strongest, most stable economy in the history of the world.