Signs of the Decline:
Josh Marshall has them here
If America keeps on spending and borrowing at its present pace, the dollar will eventually lose its mighty status in international finance. And that would hurt: the privilege of being able to print the world's reserve currency, a privilege which is now at risk, allows America to borrow cheaply, and thus to spend much more than it earns, on far better terms than are available to others.
The Financial Times
Members of the Organisation of Petroleum Exporting Countries have cut the proportion of deposits held in dollars from 75 per cent in the third quarter of 2001 to 61.5 per cent. ... Private Middle East investors are believed to be worried about the prospect of US-held assets being frozen as part of the war on terror, leading to accelerated dollar-selling after the re-election of President George W. Bush.
One of the things that the 1970s oil crisis revealed quite starkly was that when it comes to international politics, America's oilmen have more in common with the Middle East's oilmen than they do with the their fellow citizens. The OPEC embargo of the US drove up oil prices, badly hurting the US economy and causing considerable disruption in the lives of many Americans. And the US Oil industry was happy about it.
Every time I think Bush can't be that
evil or that
corrupt, he does something to prove me wrong. But here I go again:
Bush can't possibly be so corrupt as to willingly tank the American economy just to drive up oil prices. He's done enough for the price of oil, hasn't he?