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|Subject: Re: “The End of Dollar Hegemony”||Date: 2/25/2006 1:11 PM|
|Author: imdajunkman||Number: 15563 of 35527|
My guess is that the "invincibility" of the US dollar is about the same that that of the former Soviet Union. The current preception is that the dollar has strength, just as the USSR was once considered formidable."
Whoever considered the ruble formidable? As for Syria and Iran switching to Euros, that is more likely political than economic.
My apologies for the unclarity of the sentence you quoted. Yes the ruple is a joke, but the might of the Soviet Union as a nation was considered invincible by Western nations. Hence, the "Cold War". Currently the dollar is considered just as invincible, but I see cracks forming in the defence walls over two key questions: mounting SU debts and the pricing of oil in Euros.
Yes, I would concede that Syria's switch to the Euro is more "political" than economic. But that is not the case with Iran, nor is it the case with Norway, who is also talking about opening their own oil exchange this fall and conducting its business in Euros.
You want to root for the home team (the US of A) and you should, as we all should. But turning a blind eye to the rest of the world (which is a different matter than isolationism, which I do support) will only bite us in the butt.
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