A bit of American history


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Declining American Dollar Damages Foreign Policy

Saudi Arabia and the United States have beenremoving the dollar as the oil pricing
friends for some time. To the average publicstandard may make it decline further which is
within the country most Americans view Saudilikely to hurt Saudi Arabia further. The
Arabia as sponsors of terror citing thedollar has declined significantly over the
countries Muslim background. However, Saudipast few years. This decline is up to 15%
Arabia regularly supports the United Statesagainst the Euro in the past 12 months alone.
and has done so again in the last round ofAs the dollar deflates American buy less
OPEC meetings. Venezuela and Iran wanted toproducts from overseas which hurts our allies
open discussions about valuing oil against aand business partners. In addition, the
new currency standard then the dollar. Theydecline in the dollar reduces the value of
were hoping the move would be symbolic thatinvestments made by foreign countries in the
the world should move away from seeing theEuro. When countries purchase American
United States as a leader and move towardsdollars or make investments in American
some other supper power like China or thedollars they can find that the dollar is
European Union. The 12 member OPECdeflating which means they are losing money
dignitaries flew into Riyadh and Saudi policeon their investment. Each dollar is worth
and helicopter blocked roads, and protectedless then it was a few years ago and
the sky with helicopters and the dignitariestherefore their investments have shrunk. To
made it to their place of residency. Thecounter this a number of countries have begun
meeting was called to discuss oil exports andto diversify their holding in foreign
the cost of oil. In addition, the meet is tocurrency to more stable currency like the
ponder ways of reducing emissions. A secretEuro. The declining value of the dollar is a
broadcast came around which showed thatdouble-edged sword for the United States. On
Venezuela and Iran were behind the move toone end the declining dollar increases
change how oil is priced into anotherAmerican exports because American products
currency. Venezuelan representative Angela'sbecome cheaper but on the other end America
de Morais stated, "The weakness of the dollarhas less foreign influence because countries
is affecting us all" and "But that's aaren't selling as many products in the United
global-scale problem. It's not for anStates. The current crisis the country has to
individual organization to tackle." He wasface is the amount of dissention that a
referring to Saudis insistence on keeping thenumber of disgruntled countries are beginning
American dollar. Saudi Arabia doesn't want toto show now that their economies are not so
see the American dollar collapse as much oftightly tied to the U.S. We may see a growing
its economy is based on the American dollar.trend of countries attempting to hurt
They have hundreds of billions of dollarsAmerican interests and business partnerships
invested within the United States andaround the world.



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