ECB pressed to cut rates as euro soars

Tom O'Lincoln suarsos at
Thu May 8 17:46:36 MDT 2003

>>i'm intrigued by the petrodollar-vs-euro/inter-imperialist
rivalry issue, and therefore maybe there is some relevance to the
continuing rise of the euro?  there are some downsides for the eurozone
though, aren't there?  wouldn't their exports become less desirable?<<

Yes exactly. This is why I've never believed the dollar versus euro thing
as it relates to the Iraq war.

The theory about the war was that the Americans had to grab Iraq to stop
Saddam selling oil in euros, for fear that this would push  up the value of
the euro and pull down the dollar.

Well now the Americans control Iraq, and what's happened? Rising euro and
falling dollar. And who's worried about it? The Europeans.

That said, it's entirely possible that sections of the US ruling class are
naive about this and did see currency movements as direct reflections of
imperial power. To that extent, the euro-dollar thing might be part of the
ideological background to the war.

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