They haven't done it sooner because it's a futile gesture on their part that does nothing to help them, pisses off a big part of OPEC, and doesn't do much to harm the US economy.

It's more like a snub to DC than anything else. Of course, those idiots in Washington will bleat on and on about how they are telling us off and we need to make them pay.....meaning of course they get on TV saying it and a bunch of other people go make them pay.....and then pay the bills for making them pay.

It will ripple the markets a bit, gold and other commodity prices might jump for a while, and the stock market will panic as they always do....for a couple of days.

20 years ago it would have been a big deal, but the days where the US set world currency prices and exchange rates are far behind us. Currency prices will stabilize and all those countries that buy T bills will still keep buying them. Where else are they going to put their money? In Europe?

Someone doesn't understand hegemony...

 

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I don't think you're fully factoring in what those countries will use as their debt instrument of choice if they can't buy their oil in dollars.


It means they don't need our treasuries or have any real use for our currency... (At least that's how I read it)


TO KAY: There are at least 10 other linked articles within that one article so you might want to actually look through those before being your usual dismissive self.

 

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Oh, well if its on the internet I guess its correct.


edit - none of the links provide any support for the claims made in the article. They dont try to provide any causal relationship. Disaster is just presented as a statement of fact.

Well we can't know everything. I have other areas of expertise.

Although you failed to answer the questions I see.

 

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Even assuming your doom and gloom is true (which it isn't) a cheaper dollar means less imports and more exports and more competitive manufacturing and more competitive American labor.


Cheap shit from China would cost more, though.

Also - Iranian oil bourse

 

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They don't need our t-bills now.

If they just want cash in dollars, they can get them from any bank they want. You don't buy T-bills to buy oil, you buy T-bills because it's a safe haven for your money and you know you are going to get it back when you want it.

That wont change if some countries start buying some oil with other currency. It's a loss of prestige, not a loss of financial power. I know many people are convinced the US is broke, under impossible to pay debt, and doomed, but that is not the case. Not even fricken close.

T-bills are going to keep selling like hot cakes for a while yet. The only thing that would reduce their sale is a dramatic switch to austerity by the US Government. Not going to happen.

I could see that being true if america had a manufacturing base, which it no longer does.

 

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Keep thinking that thought and you might eventually get somewhere....


I'll give you a hint: expensive dollar = less manufacturing, cheap dollar = ...