Quote:
Originally Posted by ChazInMT
Just for discussions sake.
On point 1, where does the money go? Do the Arabs just bury the 5 billion dollars a week in the sand?
Sorry, but when people make this myopic point it sort of gets me going. Economics 101 taught me, US dollars are only good in the US. Japan has Yen, Europe Euros, Mexican Pesos....etc. You can't walk into a Saudi coffee shop and pay $5 for your morning joe, you gotta spend 20 Riyal for that.
So what's an Arab supposed to do with the US$ cash? Spend it in America. This means that a foreigner is the one buying real estate and shopping at expensive stores and eating really good meals, In the USA.
|
I could be wrong, but I don't believe the $5 billion a week has to stay US$... It can be converted to whatever currency desired in order to do things like build the tallest building in the world (
Burj Khalifa - Wikipedia, the free encyclopedia), or build schools that teach extremist views or purchase (or make) weapons that are used to kill soldiers and aid workers. Would it matter to the aid worker if the weapon that killed him (or her) was purchased in the US with US$? Probably not. Once the $5 billion a week is out of the US, it is a bit more difficult to get it back in the US to do usable work than if it never left here to begin with.