The Real Reasons for the Upcoming War With Iraq

[eurobillsandcoins]

Now that the war is finished, you will NOT believe what I heard on the news today ...

The US are planning to use the DOLLAR as the official currency in Iraq ...

This is like a bad horror movie ...

If Britain agrees on that, yes, expel !

Expel the UK if the US wants Irak to use the dollar as official currency. This has gone too far, the US dollar to me is a sign of greed, filth and over indulgence.

[Olivier]

Now that the war is finished, you will NOT believe what I heard on the news today ...

The US are planning to use the DOLLAR as the official currency in Iraq ...

This is like a bad horror movie ...

If Britain agrees on that, yes, expel !

Poor Irakis, who change a weak currency for a future weak currency...

[francky]

Poor Irakis, who change a weak currency for a future weak currency...

[Olivier]

Poor Irakis, who change a weak currency for a future weak currency...

BTW, I have read two interesting articles on that topic in Courrier International. One of them is in the Jakarta Post, which says that the best weapon for the anti-war is to sell all their dollars and buy other currencies (yen, euro... ).
Indonesia has decided to adopt the euro as its trade currency.

Another article from the Boston Globe, in which we can read how to counterbalance the american domination.
The journalist speaks about the cost of the US policy of dominating the world. He says that if the Europeans decide to buy their oil in euro, it's a catastrophy for the US Treasury.

[francky]

The journalist speaks about the cost of the US policy of dominating the world. He says that if the Europeans decide to buy their oil in euro, it's a catastrophy for the US Treasury.

Can we do that?
I always hear that is the vandor who impose the dollar

[John S]

Now that the war is finished, you will NOT believe what I heard on the news today ...

The US are planning to use the DOLLAR as the official currency in Iraq ...

This is like a bad horror movie ... !

Maybe not as bad as it sounds. Think of it. In order for the US to impose the deficit dollar on Iraq, it will have to print more dollars (it might have already done so in anticipation of this day). The more dollars that are printed and put into circulation, the weaker the dollar becomes. The US dollar really has nothing to back it up. Just the faith of other countries.

It's relative strength grew when there was no currency that could support a large economy. But, now there is the euro. No matter what the US does or tries to do, it can not compete value for value witht he euro. The dollar is a currency of deficits and the euro is a currency of surplus and profits.

The US is moving milliards of dollars to Iraq. At a time when the US has exported much of its manufactoring base, the dollars Iraq receives will not go to buy American goods and services. They will have to convert their dollars to other currencies, most likely the euro, in order to buy industrial goods.

see:

http://www.cleveland.com/search/index.s ... .xml?bxbiz

and:

http://www.cleveland.com/search/index.s ... .xml?bxbiz

The conversion (selling) of an over abundance of weak dollars on the world market will continue to drive the dollar down in value. Nations holding dollars in reserve, will then want to sell them even more, or else be stuck with a worthless currency.

An article in today's newspaper states:

ALGIERS, ALGERIA

OPEC's target:

$25 a barrel (ca 27.25 €)

OPEC members will take steps to stabilize oil prices when they meet next week, with a target price of $25 a barrel, Algeria's oil minister said yesterday. Worried about a possible price crash, oil ministers for the Organization of Petroleum Exporting Countries plan to meet Thursday in Vienna, Austria. Oil prices have fallen sharply since peaking at almost $40 a barrel on Feb. 27, before the U.S.-led war in Iraq. "Prices will be stabilized," Oil Minister Chakib Khelil said.


If this is the case, the low cost of oil will mean that Iraq will not earn a lot cash fast enough to pay for a quick recovery. This will mean rising debt. Coupled witht he use of the deficit dollar, the situation will be worse, for both Iraq and the dollar economy.

The ten new countries ascending to the EU effective 2004-05-01 will make matters worse for the dollar, as well. These countries still hold most of their reserves, as well as trade outside the eurozone in deficit dollars. Once a part of the EU family, the relationship with the deficit dollar will end. If Turkey, ever does become part of the EU, the power of the euro will extend to the borders of Iraq. By that time, the euros would easily flow into Iraq, and by shear value, replace the dollar or dollar based dinar that will be in place.

The US will attempt to compensate for the weakness of the dollar by printing more and more dollars. But, the more and more that are printed will have to be exchanged for other currencies, driving the dollar even weaker, and the euro even stronger. The US will have to keep printing more and more deficit dollars to keep up with the ever increasing weaker dollar. Eventually, this will cause a total collapse of the dollar.

The EU will be able to pay the costs of investments in the assension countries from the increasing strength of the euro. It is a win-win situation for the EU and a lose-lose situation for the US and dollar hegemony.

[John S]

<Can you supply a link to the artidles?
John>

It's no more online... but I will try to find it anyway.

www.courrierinternational.com

Olivier

(sorry, John, I edited your post)

[John S]

Poor Irakis, who change a weak currency for a future weak currency...

BTW, I have read two interesting articles on that topic in Courrier International. One of them is in the Jakarta Post, which says that the best weapon for the anti-war is to sell all their dollars and buy other currencies (yen, euro... ).
Indonesia has decided to adopt the euro as its trade currency.

Another article from the Boston Globe, in which we can read how to counterbalance the american domination.
The journalist speaks about the cost of the US policy of dominating the world. He says that if the Europeans decide to buy their oil in euro, it's a catastrophy for the US Treasury.

see:

http://articles.ibonweb.com/magarticle.asp?num=1188

http://mail2.factsoft.de/pipermail/nati ... 15269.html

[Olivier]

The journalist speaks about the cost of the US policy of dominating the world. He says that if the Europeans decide to buy their oil in euro, it's a catastrophy for the US Treasury.

Can we do that?
I always hear that is the vandor who impose the dollar

Francky, if a union of 450 consumers tells to Saudi Arabia, Koweit, Venezuela and Russia it want to pay in euros, if the euro has taken value against the dollar... I am sure they won't hesitate.

There are 280 millions of US citizens,
and soon 450 millions of European citizens...

O.

[Skylimit]

Maybe not as bad as it sounds. Think of it. In order for the US to impose the deficit dollar on Iraq, it will have to print more dollars (it might have already done so in anticipation of this day). The more dollars that are printed and put into circulation, the weaker the dollar becomes. The US dollar really has nothing to back it up. Just the faith of other countries.

I am a bit puzzled by this statement.
If your thesis is, that one of the reasons for invading Iraq because it was selling oil in Euro's, ..., with Venezuela and Iran, and eventually the Opec, also playing with the idea, then the invasion clearly took away the Euro-momentum that could swing the pendulum in the Euro direction.

If officially the dollar becomes the currency of Iraq, then forever the Iraqis will be obliged to sell their oil in dollars, because it is their currency.
It does not only take away momentum, it also is a natural dollar strongholder, because as long as all oil-producing countries sell their oil in dollars, all world economies must hold massive dollar reserves ...

Nevertheless, the neighbouring countries of the Eurozone, sell dollars, and buy Euro's .... especially the 10 new member states, but very important is Russia, ...
I don't know if you know this but in russia all prices are marked in dollars
(the don't call it dollar -> but it is the roebel/dollar unit) But since the introduction of the Euro, all these dollars are being sold ... and prices are indicated in Roebel and Euro now.
it is the largest quantity of dollars abroad.

The Asian Tigers are also reshaping their portfolio, and so does China and Japan.

I don't know what is happening in the Magreb countries and in Africa.
I guess pretty much the same.

Combine this with the weakness of the American economy, and the deficit and debt, and the dollar must go lower. (which it has ... 83 cents to 1,085 is a long way) I don't know if the alliance Bush has with the Marshall and Fiji Islands will change must to these facts ...

[BossaNova]

well, as good it sounds, the truth is that the collapse of american economy couldn't bring many advantages to europe..

remember the saying: when us economy gets a cold, the world gets a pneumonia...


bn

[Olivier]

Maybe not as bad as it sounds.

For the Americans...

Think of it. In order for the US to impose the deficit dollar on Iraq, it will have to print more dollars (it might have already done so in anticipation of this day). The more dollars that are printed and put into circulation, the weaker the dollar becomes. The US dollar really has nothing to back it up. Just the faith of other countries.

Yes, they oblige the Irakis to "buy" a part of the US debt.

They will have to convert their dollars to other currencies, most likely the euro, in order to buy industrial goods.

That's why I told the Irakis will get a future weak currency...
The American just postpone the collapse of their currency.

The conversion (selling) of an over abundance of weak dollars on the world market will continue to drive the dollar down in value. Nations holding dollars in reserve, will then want to sell them even more, or else be stuck with a worthless currency.

I am glad I have sold all my last US dollars...

The ten new countries ascending to the EU effective 2004-05-01 will make matters worse for the dollar, as well. These countries still hold most of their reserves, as well as trade outside the eurozone in deficit dollars.

It's going to change soon, I guess...

Even the Bank of Canada has sold 12% of its reserves (in US dollars) to buy euros.

If Turkey, ever does become part of the EU, the power of the euro will extend to the borders of Iraq. By that time, the euros would easily flow into Iraq, and by shear value, replace the dollar or dollar based dinar that will be in place.

The euro will go there, even if Irak does not have a border with the Eurozone. Euro is used in Russia, in Serbia... these countries are not just close to the eurozone.

I guess the situation will have changed very much within 10 years. It has already changed much since 1999 and 2002 !! Look! We have used the euro only for more than a year!!
Our national currencies seam already so far behind!

The US will attempt to compensate for the weakness of the dollar by printing more and more dollars. But, the more and more that are printed will have to be exchanged for other currencies, driving the dollar even weaker, and the euro even stronger. The US will have to keep printing more and more deficit dollars to keep up with the ever increasing weaker dollar. Eventually, this will cause a total collapse of the dollar.

A US dollar = 1 turkish pound?

Sell your dollars and buy roubles!!

The EU will be able to pay the costs of investments in the assension countries from the increasing strength of the euro. It is a win-win situation for the EU and a lose-lose situation for the US and dollar hegemony.

True...

[Olivier]

http://articles.ibonweb.com/magarticle.asp?num=1188
http://mail2.factsoft.de/pipermail/nati ... 15269.html

I have read this paragraph:
"The Euro, however, is not in common use yet in business transactions in Indonesia. Achmad Kartasasmita of ABN Amro Bank said the Euro is not a popular choice for Indonesian business because most of Indonesia's exports are to Asian countries, the United States, Canada and Australia, and almost all commodities from oil and gas to agricultural products are bought and sold in dollars. Exports to Japan, for instance, are also conducted in dollars as are other transactions outside the Euro zone. Even trading between Indonesia and countries of the European Union are still carried out in dollars. It is no wonder that Indonesians are reluctant to switch to the Euro. "Everyone is adopting a wait and see attitude toward the performance of the Euro," said Kartasasmita."

That's I said to Francky just above. If the Europeans decide to sell and buy in euros and no more on dollars, things will change!
It's weird that transactions between Indonesia and Europe are done in dollars!
If Japan buy airbus planes, why should Europe be payed in dollars? If we buy goods from Japan, why should we pay in dollars?

[Olivier]

If your thesis is, that one of the reasons for invading Iraq because it was selling oil in Euro's, ..., with Venezuela and Iran, and eventually the Opec, also playing with the idea, then the invasion clearly took away the Euro-momentum that could swing the pendulum in the Euro direction.

In fact, it's just amazing that the euro has become an alternative to the dollar so fast !

If officially the dollar becomes the currency of Iraq, then forever the Iraqis will be obliged to sell their oil in dollars, because it is their currency.
It does not only take away momentum, it also is a natural dollar strongholder, because as long as all oil-producing countries sell their oil in dollars, all world economies must hold massive dollar reserves ...

Not necessary... The link is not so clear. Russia has the rouble, Venezuela the peso, Nigeria (I don't know)... they sell their oil and gaz in dollars.

It takes only a decision for the opec countries to sell in euros, they will still have to change their euro/dollar in their own currency.

It's more a political decision. Obviously, about Irak, it's not the future iraki government which will decide but the White House...

Nevertheless, the neighbouring countries of the Eurozone, sell dollars, and buy Euro's .... especially the 10 new member states, but very important is Russia, ...
I don't know if you know this but in russia all prices are marked in dollars
(the don't call it dollar -> but it is the roebel/dollar unit) But since the introduction of the Euro, all these dollars are being sold ... and prices are indicated in Roebel and Euro now.
it is the largest quantity of dollars abroad.

True!

This change is done little by little...

Russia's major client and customer is the European Union! Most of the investments in Russia comd from the EU... why should we have to use a foreign currency such as the dollar?!

I don't know if the alliance Bush has with the Marshall and Fiji Islands will change must to these facts ...

[Olivier]

well, as good it sounds, the truth is that the collapse of american economy couldn't bring many advantages to europe..

remember the saying: when us economy gets a cold, the world gets a pneumonia...

bn

The solution for the USA would be to start to produce goods and to export, and to fight their huge debt and deficits...