Buying their way into Europe. Why this is important….

The Moscow Times has an article today, with a slight Russian bent, that explains why this is not only has major economic ripples to the US economy (especially if others follow suit) but also has political connotations with the EU (like giving Russians visa free travel). At present, the world’s oil is traded in dollars. This means that other oil producing nations have a huge pool of US dollars available to handle the oil transactions. If this was switched to Euros, or if even the #2 player in oil (Russia) switched to Euros, this would require the oil import-export crowd to stock up on Euros at the expense of the dollar. There would be an immediate impact of dollar dumping and a longer term impact of the Euro being needed and the dollar losing its importance. Of course, this may be a few years away, but this is a story that needs to be watched far closer than it is in the US media.]]>

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