US Dollar DROPPING ?

There is speculation that this is the reason we went to war on Saddam's government. It predates the Bush Administration. When Iraq started trading in the Euro in 1999, the rest of OPEC were sceptical about whether it would be the right move. Then when Iraq started profitting from the switch, they began toying with the idea. It's not a very popular theory though, it's not very widely reported on and a has been rejected by a lot of political commentators. It is interesting though, that none of the coutnries that use the Euro were willing to go to war, while the UK, Australia and Canada all backed it. What's also interesting is the US does not have very good relations with other countries who have talked about changing to the Euro such as Iran, Russia and Venezuala. Here is my source, apparently it was written in March 2003 before we went to war: http://www.globalpolicy.org/nations/sovereign/dollar/2003/03oil.htm

Indeed the US Dollar is dropping and will definitely be replaced by the Euro as the primary currency for the purchase of oil is they continuously drop in the following months. I believe that one reason that the US Dollar is dropping is because US President Bush is too busy dealing with terrorism instead of dealing with his own country's economy. I may be wrong but thats what I believe. Dropping of the US Dollar caused lot of companies dealing with foreign investors here in my country (Philippines) to close. There are really disadvantages of the dropping of the US Dollar. I guess if it continues to drop, all we can do is to adapt to changes like the Euro replacing the dollar as the primary currency for oil purchases. best of luck -Thanks for sharing -

Well its not only case against Euro only USD also loses against INR also which made a significant difference here, rather I would say a devastating difference. Since the value of dollar is dropping the MNCs here are laying off their employees. Very bad condition for IT market.

Well the Euro is certainly a more stable currency overall..... In my line of business we too use the Euro as the main currency wherever possible as the US dollar shifts can really make a difference to our bottom line. As some of our business lines involve high numbers at very low cost per unit; even the slightest drop can dramatically affect our margins. I guess it all comes down to which currency has more of a global acceptance too; and the Euro seems to definitely be gaining ground on that front. Yes this will have a major effect on the US dollar on world exchanges but price is price no?

i think not in short time euro can change position dollar, even dollar losing value against euro

if this will happen, it is a big lost of the USA

I heard that this was the main reason we went into Iraq and another reason why we might go into Iran. I think if it happens and thats a big if that it would only happen if certain parties had their hand in it like big oil. I dont see them letting go of all their profits unless it was some kind of power move to bring the US to our knees and further under their control. I would say that I dont believe they would do something like that but lets face it their big oil! One thing is for sure if this does happen I think we would suddenly find a different power source instead of oil.