Declining American Dollar Damages Foreign Policy

Saudi Arabia and the United States have beenas the oil pricing standard may make it decline
friends for some time. To the average publicfurther which is likely to hurt Saudi Arabia further.
within the country most Americans view SaudiThe dollar has declined significantly over the past
Arabia as sponsors of terror citing the countriesfew years. This decline is up to 15% against the
Muslim background. However, Saudi ArabiaEuro in the past 12 months alone. As the dollar
regularly supports the United States and has donedeflates American buy less products from
so again in the last round of OPEC meetings.overseas which hurts our allies and business
Venezuela and Iran wanted to open discussionspartners. In addition, the decline in the dollar
about valuing oil against a new currency standardreduces the value of investments made by
then the dollar. They were hoping the moveforeign countries in the Euro. When countries
would be symbolic that the world should movepurchase American dollars or make investments in
away from seeing the United States as a leaderAmerican dollars they can find that the dollar is
and move towards some other supper power likedeflating which means they are losing money on
China or the European Union. The 12 membertheir investment. Each dollar is worth less then it
OPEC dignitaries flew into Riyadh and Saudi policewas a few years ago and therefore their
and helicopter blocked roads, and protected theinvestments have shrunk. To counter this a
sky with helicopters and the dignitaries made it tonumber of countries have begun to diversify their
their place of residency. The meeting was calledholding in foreign currency to more stable
to discuss oil exports and the cost of oil. Incurrency like the Euro. The declining value of the
addition, the meet is to ponder ways of reducingdollar is a double-edged sword for the United
emissions. A secret broadcast came around whichStates. On one end the declining dollar increases
showed that Venezuela and Iran were behind theAmerican exports because American products
move to change how oil is priced into anotherbecome cheaper but on the other end America
currency. Venezuelan representative Angela's dehas less foreign influence because countries aren't
Morais stated, "The weakness of the dollar isselling as many products in the United States. The
affecting us all" and "But that's a global-scalecurrent crisis the country has to face is the
problem. It's not for an individual organization toamount of dissention that a number of disgruntled
tackle." He was referring to Saudis insistence oncountries are beginning to show now that their
keeping the American dollar. Saudi Arabia doesn'teconomies are not so tightly tied to the U.S. We
want to see the American dollar collapse as muchmay see a growing trend of countries attempting
of its economy is based on the American dollar.to hurt American interests and business
They have hundreds of billions of dollars investedpartnerships around the world.
within the United States and removing the dollar