That is absolutely downright scary. It will suck up billions of dollars annually as a hidden tax going to Chavez's regime.
They'll regret it later.
There are so many factors I believe are going on here that it is scary.
First, I truly believe that Iran, and now possibly Chavez are doing this, not so much because of the devaluation of the dollar (after all, the price just goes up), but because they want to FORCE a devaluation of the dollar. Economic warfare.
But I will also say that "our" Fed isn't doing much to slow the slide of the value either. With constant printing of more worthless (or getting there) paper money, on top of the huge and escalating debt, our dollar isn't helping itself out.
I believe we have built ourselves into an economic corner. We need more paper money to keep the economy rolling, but that same additional cash (not to mention debt incurred) is literally killing us. It is a very real picture of consumers in the US. And unfortunately, like many consumers, Bankruptcy is a very real threat. How can we continue to run into debt and not expect a fall at some point?
Axis of evil.
There is an old saying that, "The only way to win at poker is to Make Change". That is precicely what is going on here...taking advantage of the "spread".
Drive up the Euro, that should make France really happy. :)
We should nationalize Citgo.