Central banks prepare for turmoil after Greek vote http://www.reuters.com/article/2012/06/16/us-eurozone-crisis-idUSBRE85D0CA20120616
How shock waves will hit US if Greece drops euro http://hosted.ap.org/dynamic/storie...ME&TEMPLATE=DEFAULT&CTIME=2012-06-16-09-58-56
You can buy OPEC oil only with US dollars. How can you get US dollars if Americans doesn't need/buy anything from you. Looks like US is operating a Ponzi/Pyramid scam on global scale since Nixon Shock.
But that would involve a transaction cost. Otherwise you can build up the dollar reserve via legislation aimed to limit the dollar outflow like Argentina is currently doing.
Debt crisis: EU leaders set to announce â¬750bn Spain and Italy bailout deal Pan-European Government funds are set to be used to buy Spanish and Italian bonds, which have recently hit record highs â in a move which will send a strong signal to financial markets that the German administration is prepared to back its weaker economic neighbours. http://www.telegraph.co.uk/finance/...ounce-750bn-Spain-and-Italy-bailout-deal.html Negotiations at the summit are expected to focus on plans for a European-wide banking union. http://www.telegraph.co.uk/finance/...and-Italy-to-be-bailed-out-in-600bn-deal.html Zieg Heil !
There is only about ~900 billion paper and coin dollars. There is about ~14 trillion dollars worth of credit supplied by banks. There is about ~55 trillion dollars in total debt, again, supplied by banks. What backs the dollar is the faith that the 14 trillion dollars will some day pay the 55 trillion dollars off. Looks like US is operating a Ponzi/Pyramid scam on global scale since Nixon Shock.
Umm...no you couldnt. The reason being is we dont have their currency to give them(or at least we dont have enough of it.) For instance....The US buys saudi oil with dollars. Lets say one day they give the saudis 1 billion US dollars for oil. The saudis say "Hey, we dont want dollars, we want Saudi riyals" So they go to the exchange and say "I want to exchange all these dollars for saudi riyals" The woman at the exchange booth says "Sorry, we only have 10 million saudi riyals right now. You are not buying enough american goods with your riyals so we dont have enough to give you in exchange for your US dollars. But we can give you some nice treasury bonds that pay interest!" ...and the cycle keeps going every day. Now you know why they are pissed at us.