Topic: W A R - on May 9, 2004 at 3:40:00 PM CEST
#19 U.S. Dollar vs. the Euro: Another Reason for the Invasion of Iraq
President Richard Nixon removed U.S. currency from the gold standard in 1971. Since then, the world's supply of oil has been traded in U.S. fiat dollars, making the dollar the dominant world reserve currency. Countries must provide the United States with goods and services for dollars — which the United States can freely print. To purchase energy and pay off any IMF debts, countries must hold vast dollar reserves. The world is attached to a currency that one country can produce at will. This means that — in addition to controlling world trade – the United States is importing substantial quantities of goods and services for very low relative costs.
... Comment
