Oil Producers Shun Dollar

FT.com / World / US & Canada – Oil producers shun dollar

It looks like the dollar is taking a beating at least partially because Russia and OPEC countries are shifting their exposure to dollars by at least a few percent. A twenty-four month low in OPEC’s exposure to dollars is met with a twenty month low in the value of the dollar. It’s definitely hard to argue against their being a solid connection. And it appears it may be the number one tool that Iran will have against the U.S. Probably more effective even than funding Hezbollah.

Anyone want to put money on our going into Iran before they get a chance to shift any more? What about Russia? Just like old times. Actually, I vote for another space race instead.

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When the dollar talks back

When the dollar talks back – Opinion – International Herald Tribune

I guess that the joyride can’t last forever – at some point you’ve gotta pay the tab. As my dad is fond of saying, “There ain’t no free lunch.”

We’ve already seen that this government will do anything to ensure dollar hegemony, but there are forces here that may be unstoppable. This administration has pursued a fiscal policy that is clearly unsustainable – while at the same time, allowing the rise of a formidable currency competitor in the Euro.

A run on the bank is hard to stop . . .

Krugman agrees!

And then is a big baby about it.

http://www.nytimes.com/2005….

An article from Krugman in which he agrees with Bush’s push to shake the Chicom’s peg to our dollar. I’m sure many of you will find this interesting, and may have something to say about it.

Posted at 11:29 pm by Johnny B