Quote:
Originally Posted by noone1
How do so many people miss the point that in doing so, all the countries that have massive amounts of USD's and USD investments would be depreciating their assets beyond belief?
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Sure... it's just the same as a bank terminating all relationships with a corp heading for insolvency. They prefer to cut their loses before losing even more.
The reality is it is not a corp but a country, and it's not just about money when shit hits the fan and any country will be supported to a basic level.
OPEC countries have no desire to lose money, nor do they have a desire to inflict damage globally because of the problems of one country. At the same time, they have been very tolerant of dollar fluctuations and some members obviously are considering change. That may come, at least initially, in the form of a dual petro-currency where there is not total reliance on the dollar - tho hard to see that happening in the near future, but they have learned a lesson from recent times and doubt that lesson will be forgotten.
Bottom line - sure there are trillions going to be lost, but that is nothing in relation to the current debts of the US - it's a matter of when ya decide to cut your losses, but suspect OPEC will stay with the US dollar, at least for the foreseeable future, and other OPEC members may go their own way on oil currencies.