From 2003 and ..........................Information Clearing House
By Nick Beams
''A shift by OPEC to the euro would rapidly confront the US with an
economic “nightmare scenario.” Major oil importers would need to
transfer some of their funds from US dollars reserves—stocks, bonds
and other assets—into euro reserves. This would see a sharp fall in
the value of the dollar, possibly setting in motion a further withdrawal
of funds as investors became nervous over the value of their dollar
assets. Suddenly the burgeoning US debt, which at present plays little
or no role in day-to-day financial calculations, would become a factor
of considerable importance.
In other words, a switch in the financial basis of the oil export
market, or a significant part of it, would have major consequences for
the global financial position of the US, quite irrespective of whether
oil was freely available or the price charged for it. However, if the US
were in control of Iraqi supplies, either directly or through a puppet,
it would be in a much better position to block any currency shift by the
OPEC countries.''
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