Believe In America.com

jim · Joined: 08 Mar 2006 Posts: 1

Watch what happens when OPEC, Iran, Russia, North Korea and others start trading oil against the Euro instead of the U.S. dollar. And yes, they are going to do it.

As it was said by a U.S. economist:

Patriot · Site Admin Joined: 10 Jan 2006 Posts: 471

While I think this could be ugly for the U.S. in the short term, the long term effect is a little less certain. The reason being that at this point Europe has a trade surplus with the United States and we are the worlds foremost consumer nation. When the dollar loses its buying power Americans will not consume as much and will mean we wont be buying from France, Germany etc. And poof goes their surplus. But they will more than likely be buying from us because their currency will have more buying power.

The real threat is when Japan and China, the two countries who owns most of Americas debt, call the note. When they finally say that the good faith and credit of the U.S. is no longer good enough, so pay up.

America is over 8 trillion in debt. We dont have the ability right now to pay up. The flip side of that equation is, where will Japan, China and the rest of the world sell all their junk? It will definitely be a world crisis not just an American crisis.

Patriot

The Fox · Joined: 23 Jun 2006 Posts: 112

Sandlapper · Joined: 24 Jun 2006 Posts: 12

I agree with you, Patriot, about China and Japan. That is one of the scariest scenarios we are faced with. MOST of our debt is held by them and look how volatile our relationship with China has been. And, we sit back and let them build up their military--even HELP them build it up. We are FOOLS.