>Walter, the scenario fails because nations don't need to hold $ reserves to trade in oil.

Dollar used to be directly convertible to gold until sometime in 70s when
it became covertible to oil. By that time, great number of countries has already built their national money reserves in USD. National reserves are not built/held only to buy oil, but for meny other reasons.

There4 yes, you get *taxed* if you purchased X amount of USD by paying Y amount of money in currency Z, and tomorow it is worthed only X-1 (and ticking)

As for this being main reason to attack Iraq;
I would say rather one out of meny (bad) reasons.

What article does not explain is how serious chances Saddam had in defeating dollar as major oil trading currency. It was not only Saddam who desired this to happen. Russia and meny others would like this as well; Yesterday, Today and tmrw. They are loosing money on weakening dollar as well.

Imo, that will happen sooner or later.