Example of Iran's economic warfare against U.S.
http://abcnews.go.com/Business/wireStory?id=3883287
Yet again, another example of Iran doing what it can to gain strategic advantage over U.S.
Aloha.
posted by Dan G. @ 6:33 PM
2 comments
2 Comments:
How does OPEC changing their cash reserves to a different currency show Iran gaining (or even trying to) strategic economic advantage over the US? I'm missing the connection
OPEC is a major economic power/monopoly. For Iran to suggest that OPEC switch away from the dollar (and, potentailly, OPEC actually switching away from the dollar) tells the rest of the world that OPEC doesn't have confidence in the US dollar. This will cause others to lose confidence in the US dollar. This will cause the value of the US dollar to decrease, thereby diminishing the buying power of the US in the international community.
Currency markets are based upon perception of value of the currency. Anything that diminishes that perception, causes harm (and a decrease in value) to that currency.
Iran doesn't gain anything itself, but it does reduce our capabilities. So, in a race/contest/warfare, they have not gained ground, but their opponent has lost ground. So, they come out ahead.
Aloha
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