Now it gets really ugly! With Chavez backing Iran's plan to open their own oil bourse and sell oil in Euros, tensions with the U.S. will only escalate further. If this happens, the U.S. Dollar will weaken further. Other countries (Russia and China) may join in with this arrangement which will compound the problem further. Interest rates will have to rise to defend the dollar but will have a devastating effect on the housing market and the overall economy. Does anyone else see a "Perfect Storm" brewing?
How many countries can the U.S. invade simultaneously to prevent this from happening? Stay tuned...
Venezuela has backed a proposal to sell oil in euros instead of U.S. dollars, Energy and Mines Minister Rafael Ramirez said on Thursday.
In an interview with state television, Ramirez said "Iran has an initiative that we support. They are going to start to do oil transactions in euros."
The remarks came ahead of a meeting of the Organization of Petroleum Exporting Countries (OPEC) in Venezuela's capital on the same day.
Ramirez, who is also the president of the state oil company PDVSA, said "If a market in euros is created, with the euro as a reference, we could send our supplies so they are sold under this (currency)."
Responding to Ramirez's remarks, Edmund Daukoru, president of OPEC, said some member countries had raised the possibility but added that they had not formally tabled the proposal to the bloc.
The idea of selling oil in euros was first floated in 2004. Iran, a member of the OPEC, also supports the proposal
