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Art
This thread is to discuss the likely future trend for the value of the USD, it's continuing role as the world's major reserve currency and the likely impacts on the US economy.
To kick it off here's a few interesting reads from the past few days;
A weakened dollar means more expensive imports leading to inflation, leading to higher interest rates which in turn leads to recession...
The dollar fall is likely to be compounded by politically inspired moves to reduce the worldwide demand for the greenback
With several of the world's largest energy suppliers moving away from the USD the need for their customers to hold large USD reserves is greatly reduced with potentially very serious repercusions for the US economy.
To kick it off here's a few interesting reads from the past few days;
http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=FT&Date=20060512&ID=5717754US dollar takes a pounding over deficit
Financial Times News - The US dollar suffered a severe sell-off on Friday, taking it to its weakest level against a trade-weighted basket of currencies since October 1997, as fears about the US current account deficit crossed world markets.
A weakened dollar means more expensive imports leading to inflation, leading to higher interest rates which in turn leads to recession...
The dollar fall is likely to be compounded by politically inspired moves to reduce the worldwide demand for the greenback
http://www.businessweek.com/ap/financialnews/D8HL5NS01.htm?campaign_id=apn_home_down&chan=dbThe Associated Press/LONDON
Chavez may price oil exports in euros
MAY. 16 7:09 P.M. ET Venezuela's president Hugo Chavez said Tuesday that he would consider pricing his country's oil in euros instead of dollars in line with a similar declaration made by Iran.
Earlier this month Iran's state television reported the country's Oil Ministry granted a license for its first euro-denominated market.
"That is an interesting proposal made by the president of Iran," Chavez told Britain's Channel 4 news. "We are free to choose too between the dollar and the euro."
http://en.rian.ru/russia/20060515/48107520.htmlRussia to set up oil-product exchange in 2006 - official
11:01 | 15/ 05/ 2006
MOSCOW, May 15 (RIA Novosti) - An oil-product exchange will start operating in Russia by the end of 2006, a deputy economics minister said Monday.
In his state of the nation address on May 10, President Putin said Russia, as a leading world oil exporter, had to set up its own oil exchange to trade crude and petroleum products for rubles.
Kirill Androsov, the chairman of a government task force on launching oil and petroleum product-traded exchanges, was upbeat about the timeframe for opening the bourse: "The oil-products exchange will open by the end of the year."
Androsov said that although work was being conducted in parallel, it was easier to organize an exchange for petroleum products rather than export oil as there were many buyers and that state purchases could boost the process.
The deputy economics minister said Russia could set up an exchange to trade in oil export by the end of 2007.
With several of the world's largest energy suppliers moving away from the USD the need for their customers to hold large USD reserves is greatly reduced with potentially very serious repercusions for the US economy.
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