Iran started this earlier in the year by demanding Japan pay for their oil in yen, which the Nipponese were very happy to do.
Saudi will not make a move with the dollar for the sake of W and the sale of some 20 billion in military equipment. Once the sale is over and the ink is dry, well...
Get ready for the peso to catch up to the dollar.
This same story has been posted several times on FR over the last several days.
If we could just kick China free we could really turn things around here.
This must be true since it has been posted several times.
I hate to watch my retirement funds slowly become worthless compared to other world currencies.
From The Economist last week (http://www.economist.com/finance/displaystory.cfm?story_id=9804394):
“Another argument against a sudden crash is that the dollar is already quite cheap. In real effective terms, it has slowly fallen by some 20% since its recent peak in 2002. That decline is already helping to shrink America’s external deficit. Monthly trade figures for July showed exports growing at a 14% annual rate, whereas imports grew by 5%. This differential, notes Jim O’Neill of Goldman Sachs, is the biggest in years. Add in the probability of sharply slower domestic demand in America, and the current-account deficit could shrink a fair bit over the coming months. A smaller need for foreign funds would itself put a floor under the dollar.
All told, the doom-mongers’ script may play out in reverse. Instead of a financial crisis prompting a dollar crash, it may accelerate the unwinding of the imbalances that had the worrywarts so unnerved in the first place.”
Fears Of Dollar Collapse As Saudis Take Fright
The Telegraph (UK) | 9-19-2007 | Ambrose Evans-Pritchard
Posted on 09/19/2007 4:43:56 PM EDT by blam
http://www.freerepublic.com/focus/f-news/1899155/posts