Originally Posted by
bedrock
The gulf states do pay for their own oil by agreeing to only accepting ever-devaluing dollars, and thereby propping up those dollars which foreign countries must have in order to get oil. Those countries that agree to accept currencies outside the dollar do so at their peril. I guarantee the House of Saud is doing whatever it is doing with US approval.
The dollar's days of global exclusivity are numbered. It will likely remain a significant part of a "basket" currency, perhaps even a strong majority, but its exchange monopoly days are limited.
Its way easier to take out a Libya or Iraq here or there for threatening to go off the dollar. Its another thing altogether when Russia, China, Brazil and many, many others are talking about incrementally switching to other alternatives.
It won't be that big of a deal for us either, if we learn to live within our means. That might include sitting out a few "Arab Springs" and not providing their military welfare for them for free, or paying them to take our airplanes and transfer jobs to them. Oh well.
They have ZERO leverage over us. None. Especially if the EU stops carrying their water, which has potentially started already. They have massive replacement lift ambitions with the US and EU and many other markets having nothing to do with the ME.
Let them choke on their super jumbos.