Mike the Usurper wrote:

] Yep, I oversimplified a bit and it's also a more than a little
] disjointed (it was late, what can I say), but I think you've
] hit the nail with the Perfect Storm comment. This is one more
] contributing factor. Whichever one is the final straw will be
] the one that gets blamed, but it's never quite as simple as
] that.

It's interesting that the currency drop is more effect than cause, but is getting treated like cause. Particularly when we're looking at a 9 year pattern. WTF? How can analysts mislead people like this?

] The one that scares me is the petro-euro. If that happens,
] that would move the whole system away from the dollar making
] recovery much, much harder.

I dunno if that's all that bad. Considering that the nearterm gluttons for fossil fuels are PacRim countries (Japan, always the whore, and China poised to take first place at the table in a matter of months), it would likely stay dollars. But even if it did shift to euros (and the reasoning there is confounding, since most of the Middle East economy is bolstered by the Europeans, hence their aversion to the war in Iraq, particularly the French which still have something like $90B in outstanding Iraqi debt), that would probably indicate a move by the US to decouple itself from Middle East fossil fuels and onto something less volatile. If so, that could reignite the economy, and not necessarily stunt it. But this is just theory.

RE: Yahoo! News - Dollar Hits New Low, Gold at 16-Yr High