USA can thank China....

[natedogg]

Good thing my savings are heavily allocated to foreign stock funds ... [img]/images/graemlins/smile.gif[/img]

natedogg

[ALawPoker]

I wasn't suggesting you didn't know what you are talking about, I was just looking for the actual information, since your OP didn't really elaborate.

[ConstantineX]

This is kinda shocking to me, even though the United States fully deserves it. Accumulating such huge reserves in the first place was at least as much a political decision as an economic one, since buying Treasuries has such a pitiful return compared to other investments the Chinese could have made. Why now? Awfully hard for the Administration to deal with this alongside the Iraq War and the escalating tensions in Pakistan. And the Chinese sell-off would put downward pressure on the dollar, which would certainly encourage other oil-exporting countries with dollar pegs to float after they realize they are trading a sharply appreciating asset (oil) for a sharply depreciating one (dollars). With China needing World validation for the 2008 Olympics, I expect to see heavy political pressure applied in the next couple of weeks.

[bobman0330]

One question I'm wondering about is how much is the recent run-up in oil prices due a decline in the dollar and how much is due to a real increase in the value of oil?

[ConstantineX]

[ QUOTE ]
One question I'm wondering about is how much is the recent run-up in oil prices due a decline in the dollar and how much is due to a real increase in the value of oil?

[/ QUOTE ]

Alot of the headline increase has to do with the depreciation of the dollar, and also further expectations of inflationary (for oil) depreciation of the dollar. Apparently Europeans haven't registered any change at all in their crude oil prices. There are also valid concerns about oil supply constraints published by the IAEA about global demand expanding much faster than previously expected.

[AlexM]

[ QUOTE ]

We could use a good, hard slap in the face and learn a lesson: Don't use stupid fiat money.

[/ QUOTE ]

[ConstantineX]

Nothing wrong with fiat money per se. The problem is with the monopoly of any sort of money. The term "fiat" is a distraction, since in AC-land you can bet there'd be entities guaranteeing money with any sort of physical assets.

[AlexM]

[ QUOTE ]
Nothing wrong with fiat money per se. The problem is with the monopoly of any sort of money. The term "fiat" is a distraction, since in AC-land you can bet there'd be entities guaranteeing money with any sort of physical assets.

[/ QUOTE ]

Right. There wouldn't be fiat money. People would laugh at you.

[ALawPoker]

[ QUOTE ]
Nothing wrong with fiat money per se.

[/ QUOTE ]

Nothing wrong with preemptive war "per se." Sometimes I can point to some immediate positive consequence. But any justification is ultimately shortsighted. Unless you're a bona fide magician, it's tough to benefit from money that has no inherent value in the long-run.

[slickss]

[ QUOTE ]
Apparently Europeans haven't registered any change at all in their crude oil prices.

[/ QUOTE ]
At least in Scandinavia, we've had fuel prices topping $2 per liter (apx $8 per gallon) for years now. Fuel, because of the government's aggressive pro-climate policy, is heavily taxed.