What if OPEC's meeting is not about volume but currency?
So OPEC is meeting this weekend in an unscheduled sort of way. Recent comments by various members have suggested that the current price does not reflect the supply - demand balance, but stands by to increase production if necessary. Please, what producer or retailer wouldn't love to be selling product with a 30 percent premium to reality.
So for arguments sake, what if they are going to change the global pricing of oil from dollars to a basket of currencies?
What happens to the dollar? What happens to the US's balance of trade? Will someone finance our addiction to oil?
I cannot envision many positive impacts for the US economy in the short-run, in fact, there will be significant economic dislocation. The Federal Reserve stepping in and papering over the problem will only exacerbate it.
What can you do?
So for arguments sake, what if they are going to change the global pricing of oil from dollars to a basket of currencies?
What happens to the dollar? What happens to the US's balance of trade? Will someone finance our addiction to oil?
I cannot envision many positive impacts for the US economy in the short-run, in fact, there will be significant economic dislocation. The Federal Reserve stepping in and papering over the problem will only exacerbate it.
What can you do?
- Invest outside the dollar.
- Find an alternative energy to heat your house this winter.
- Brush up on your commuter etiquette.
- Buy CSCO. In my humble opinion,CSCO is the best hedge against higher oil prices. I love the internet!
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