I read today that the motive for invading Iraq was this:

[KlatooBNikto]

That the UN imposed sanctions on Iraq weere going to be lifted and
Saddam Hussein had already revealed his intention to denominate his prices in Euros instead of dollars.If this was allowed to occur, all oil rich nations would follow suit.This would result in the collapse of the dollar, causing economic ruin for us.

Does anyone have any more information on this?

[stellanoir]

1. I've heard of that theory as well.

Seems plausible. Furthermore, that was one of the many reasons why France and Germany were so opposed to the invasion. They supposedly were in negotiations with Sadaam for exclusive oil contracts.

Heard it on NPR a couple years ago. n/l

[Owlet]

2. True..to a point

Saddam had already repriced Iraq oil in Euros. http://www.rationalrevolution.net/opec_iraq_euro.htm Other Opec countries were thinking about it, but hadn't taken any action before the invasion in March, 2003. One of the ironies of this whole episode is that, if the invasion was meant as a warning to other Opec members not to move off the dollar, then it had the opposite effect in relation to Russia which moved off the dollar about a year ago. http://www.money.telegraph.co.uk/money/main.jhtml?xml=/money/2003/10/10/cnoil10.xml&menuId=242&sSheet=/money/2003/10/10/ixfrontcity.html

This whole oil pricing business is so murkily complex that, though I've been trying to figure it out for years (strctly as an amateur using public sources) I confess to not knowing much more now than when I started.

[Flammable Materials]

4. If Bush gets elected, do you think OPEC will take it as a sign ...

... to tell America to piss off and go straight to Euros?

[BlueEyedSon]

3. Yes, Dollar (vs Euro) Hegemony and Peak Oil are the real reasons

Real Reasons for the US Invasion:
Military Solution to an Economic Crisis

Indeed the US has taken the contrary course. It plans to reverse the various trends mentioned above by seizing the world’s richest oil-producing
regions. This it deems necessary for three related reasons.

Loads more: http://www.rupe-india.org/34/military.html

[KlatooBNikto]

5. Great reference! Why is it that such a clear article is coming from India

Should we outsource our op-eds to India too?

[BlueEyedSon]

6. Because the ROW (rest of world) will be screwed if

our "projection of power" (i.e. oil/land/power grab) works. Especially Indian and China. BTW, that piece is from 12/2002. Use the contents links on the left, all the parts are great.

[ProfessorGAC]

7. That May Be, But. . .

. . .it is a canard. I don't doubt that the PNAC crew believe that oil priced in euros, not dollars, would some how affect the economic hegemony of the U.S. and negatively impact our economy.

But, there is NOTHING in either economic theory or in econometric data to support such a belief. Economic dominance is not a function of the currency of choice. It's productivity, consumption (a function of middle class vibrance), innovation, and macroeconomic diversity that drive such dominance. You can call the currency "Fred" and it wouldn't matter.

Recall that during WWII and for 10 years after, the dominant international currency was the Swiss Franc, followed the British Pound. But, during that period, which country dominated the global macroeconomy. The U.S.! The currency is just a abstract choice and is not indicative of either a hegemony or dominance.

Like i said, however, i do believe that the two dimensional thinkers in this administration, and in PNAC believe that the currency leads the results. So, you're not likely wrong about the motivations for the war. It's just that THEY were wrong.
The Professor

[KlatooBNikto]

8. It was my understanding that because of the large external debt

that the US has run up especially with China and Japan the redenomination of that external debt in Euros would affect the intrinsic value of the dollar.How this would affect our economy, I have no idea.May be you can elucidate that, Prof?

[TahitiNut]

9. " OPEC has ... already turned to pricing oil in euros"

OPEC has for all practical purposes already turned to pricing oil in euros

;-)

[KlatooBNikto]

10. If that dreaded day is already here, was the War on Iraq a way to

minimize the impact of OPEC's power by seizing Iraq's oilfields?