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Who Would Want The Euro To Fail

Updated on June 5, 2012

Euro Bail Outs

It is looking increasingly likely that the funds provided by the countries in the more affluent European Union comrades may fail to rescue the countries nearly bankrupted due to the change over to the Euro.

Greece and its people are calling for a return to its former currency the Drachma, as the austerity measures bite deep .If the economies of the countries in the union which are also under threat fall further would they revert back to their previous currency

Who Would Want The Euro To Fail ?

Central Bankers and Moneylenders

Possibly, on a divide and conquer strategy.Low interest rates have caused all the problems for the countries in the euro scheme as well as other European countries that aren't. They went on a debt spree and are now paying the cost with all sorts of measure inflicted on their populations.Such as higher taxes, pension cuts as well as health and public services being reined in.

The domineering money lenders would be happy to see the currency weaken in their mission for one world currency.

As long ago as the 19th century ,Europe wanted a common currency throughout the continent.France even wanted a universal currency founded on a system of gold coins minted by France,America and Britain.These plans were thwarted by Britain's refusal to go decimal.

The USA.

The US has not had a strong dollar since the 1980's and over the last 40 years has lost 20% of it's value.Some economists would still consider the dollar to be reasonably strong.

Iran is the fourth leading oil exporter and India and China rely heavily on Iranian oil for their booming economies. It is now common knowledge that these countries want to trade oil for gold and possibly trade for oil with other commodities that they export.

Basically India and China , who take 40% of Irans oil exports don't want to pay with dollars.

Oil For Dollars

In 1975 any country that wanted to buy from any OPEC affiliate, had to pay with US dollars.This strengthened the dollar, the oil trade was now running through the Federal Reserve. Everyone now needed the dollar and it cemented itself as most nations second currency.How did this happen?

1973 The Richard Nixon Oil Deal

President Nixon offered to protect King Faisal's oil rich region in Saudi Arabia from its feared and unruly neighbours Iran and Iraq.In return for this, the King accepted the deal to only allow his oil to be sold for the US dollar. A further favour was to finance the US economy by purchasing treasury bonds with their own profits.

A remarkable business deal from the president who "always tried to do his best for the nation".He quit his post in 1974.

Nixon though left a legacy for the nation that would make money on virtually all oil sold, and bringing the USA cheaper oil.

1999, Iraq To Sell Oil For Euros

Saddam Hussien seemed prepared to break the dollar stranglehold on oil by selling it to Europe for Euros.

By the autumn of 2000 many of the European nations had convinced the Iraqi leader to by- pass OPEC and effectivley sell its oil for food in euros. Russia and other nations became interested in the idea.

In the spring of 2003 Iraq was invaded by the USA as part of the war on terror campaign believing they had weapons of mass destuction. No weapons were found, but with the removal of the dictatorship, it ensured no oil would be sold for euros.

Oil For Dollars

Due to the sanctions applied to Iran, Europe's countries with flagging and failing economies will not be able to buy oil in euros, even though it could help the near bankrupt nations.

Iran is strongly allied with China and Russia who are prepared to trade for oil in other currencies and not the dollar.

This would cause the dollar to weaken.The strength of the dollar lies in the fact the oil industry trades on the back of the US dollar.If other countries were to follow suit and buy their oil in other currencies ,this could have a dramatic effect on the dollar as it loses its status as a reserve currency and the world realises it has other alternatives to the dollar.

Action on Iran

Iran like Iraq previously is now being judged by the west on its current regime and their ability to create nuclear weapons.Sanctions have been enforced and assets seized.

Despite sanctions there is still a great threat that Iran will be invaded just like its neighbour Iraq.Whether the west will intervene or one of its surrounding enemies will take action, it is not known.

History repeating Itself?

It is now likely Iran will suffer the same fate as Iraq for the same reason.This is not about gaining oil or protection from nuclear weapons.

It is about safeguarding the dollar as a standard for trading in oil, and Americas ability to print dollars and gain cheap oil.Trading in gold would see the dollar rendered valueless.

When you look back in history the cause of most wars are not because of atomic arms,but because of usury and central banking.


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    • ronaldoh profile imageAUTHOR


      6 years ago from England

      Thanks again Perspycacious for your interest,I agree it's good to share links.

    • Perspycacious profile image

      Demas W Jasper 

      6 years ago from Today's America and The World Beyond

      Thanks for the link! More Hubbers could do the same for a good Hub on a similar or same topic, and raise "Hub awareness" by at least one third or more. Doing it when the topic is as important as the world economy, is a must, especially as the HP sidebar suggestions often have some which seem at times to be far from the topic being presented. When they are "on topic" choose one and link it...even after your own has initially been published. We are a group that shares, so share some links Hubbers.

    • ronaldoh profile imageAUTHOR


      6 years ago from England

      Thanks for looking in Chris, and appreciate your points.It's hard to see Greece ever getting out of thIs mess. The debt is simply too great, it's just a matter of time,other countries economies are being affected by paying for the bail out.

    • CHRIS57 profile image


      6 years ago from Northern Germany

      There certainly is a strong indication for gambling and speculation on the Euro.

      However if you rate the overall economic situation of all countries in the Eurozone together, then you will find that all figures look more promising than for the US, and the UK by the way. Actually the financial pressure on the Euro initiated structural reforms in their real economies. In that aspect even Greece is doing more than the US for example to improve its situation.

      So at the end of the day not political money gambling but sound real economics will succeed.

      And - yes, Richard Nixon was the last good president, the Republicans had. Puuh - what do i write, there should be some newspaper articles left showing me in front line protesting against Nixon/Watergate in 1974.

      Good hub, pleasure reading it. Thank you.

    • ronaldoh profile imageAUTHOR


      6 years ago from England

      Thanks for your comments perspycacious, yes it maybe out of President Obama's hands. I think Germany will ensure the EU will survive , they have already taken democracy away from Greece and Italy.

    • ronaldoh profile imageAUTHOR


      6 years ago from England

      Thanks Kathleen for your comment. . This is an article from the Guardian in 2003.

      Last year, in a little noticed Opec speech to a Spanish Finance Ministry conference, Javad Yarjani, a senior Iranian oil diplomat, said: 'It is quite possible that as bilateral trade increases between the Middle East and the European Union, it could be feasible to price oil in euros.

      The above is an a excerpt from the article.

      Thanks for the tip ,I will include and add sources to hubs.

    • Perspycacious profile image

      Demas W Jasper 

      6 years ago from Today's America and The World Beyond

      Good Hub. On the contrary, depending on the rapidity of the demise of the Euro (and the recent bailout of Greece only delays the process to buy enough time to absorb a Greek failure) disrupting the international monetary systems prior to November's US Election is probably the last thing President Obama would work towards. International and US Banks could be another story! If the Euro fails, is it the end of the European Union? There is the subject for your next well-researched Hub.

    • Kathleen Cochran profile image

      Kathleen Cochran 

      6 years ago from Atlanta, Georgia

      Interesting perspective and you certainly did some research. Wish you had included some of your sources. Up and interesting.


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