" ... here’s the simple version: back the dollar with gold, and it’s a solid currency. Back the dollar with a solid manufacturing economy, and it’s a stable currency. Back the dollar with petroleum trading and military force, and you’re o.k. — so long as you’ve got enough military force to prevent oil-rich countries from selling their oil outside the dollar. Because if that happens, then the dollar is backed with nothing but propaganda and it will collapse. "
Interesting article on copvcia.com
http://www.fromthewilderness.com/fr...
" ... here’s the simple version: back the dollar with gold, and it’s a solid currency. Back the dollar with a solid manufacturing economy, and it’s a stable currency. Back the dollar with petroleum trading and military force, and you’re o.k. — so long as you’ve got enough military force to prevent oil-rich countries from selling their oil outside the dollar. Because if that happens, then the dollar is backed with nothing but propaganda and it will collapse. "
B Hecht
City of Houston
(My office is one block from the Enron trial)