Reply #21: High Oil prices [View All]

[many a good man]

I think we can owe today's high market prices for crude to the imminent competition of the impending petroeuro exchange. As the dollar weakens, producer nations demand a higher dollar price; otherwise they'll want to jump ship and sell their oil in Euros instead.

Euro-pricing of oil would be like turning off the vacuum sweeper: there will be no way to finance our trade and budget deficits, or to keep the stock market propped up.

Europe would lose a lot of exports to the US so their cooperation is paramount. But I don't think they'd abide a US military intervention in Iran. Nor would Russia and China. The junta wouldn't be mad enough to attack Iran, would they??? (Deja Vu, fall 2002)