Redhots
Member
- Apr 9, 2006
- 507
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mtnbiker said:Quote:
Originally Posted by Redhots
Wait till they decide to stop holding our debt
Why would they want to do that?
I just started a thread that touches on that subject.
http://www.usmessageboard.com/forums/showthread.php?t=31324
But the short answer is like I said, if oil starts trading on the Euro like most of the industrilalized world wants it to whats the point of holding onto so many US dollars?
The American dollar is wedded to oil.
Currently oil can only be bought with US dollars. Saddam started selling Oil for euros, but that didn't last too long.
This is why China and others hold our debt at a loss to themselves, they need US dollars to buy oil. No oil to power industry and they join the 3rd word.
But what if they didn't need US dollars anymore to buy oil? Also after the huge value hit the dollar would take if other countries started buying oil based on the euro theres even more reason for them to.