Im just getting back to this thread apologies if Im way behind the
flow. Anyway, Krugman is OK as far as he goes. As I mentioned before,
the euro-vs-dollar conspiracy crowd is simply wrong on the mechanics of
how these things work. Whether oil is denominated in dollars or not is
relevant, as
I suspect that the vicious war in Iraq would make nations more likely to
want to use an alternative to the dollar.
I agree that the privilege of issuing a currency that serves as a unit of
account offers the profits of seniorage, but I cannot see a war in the
face of world public opinion shoring
Max B. Sawicky wrote:
Krugman argues that the issue is a crock:
http://www.wws.princeton.edu/~pkrugman/oildollar.html
His argument looks right to me.
He plays it down a bit too much I think. We've borrowed immense piles
of money in dollars with no currency risk. The Fed could run the
printing
