My dear Shishir

Submitted by Debanjan Banerjee (India), Jul 30, 2013 at 12:06

"s for the oil and dollar , once this proves your utter ignorance of the working of the world economy.If the GCC switched to the Euro ,it doesnt mean that the U.S will stop recieving oil. It will only mean they would have to pay a tad more."

My Answer : The basic thing about economy is related with surpluses and deficits. The US thanks to her wars and other profligacies sits atop mountains of debts and thanks to globalization has a crumbling industrial base.

Now the only thing that keeps the US going is the dollar. Since dollar is the currency of the World , the countries with surplus dollars like Chna or the gulf Arabs invest it inside US government bonds or US arms.

That helps the US government to protect it's superpower status at the time of rising deficits.

Now if the Gulf Arabs stop selling their oil in dollars or China stops investing it's surplus dollars into US government bonds then how would the US be able to survive ?

How would it be able to maintain it's military bases around the World ?

How would it protect it's borders ?

And you talk about fracking ?? If the King Dollar is not there , even if the US have the technology it would not have the wealth to make it in a viable marketable product. China would get the technology cheap as it has been doing to the US solar panel industry of late.

So the US needs the King Dollar more than any one else.

Now please give me your counterpoint.

Take care

Debanjan

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