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June 02, 2008 – Comments (2) | RELATED TICKERS: TELOZ , DOM , WTU
The dollar's demise has been linked to high oil prices in part because oil is bought and sold in U.S. dollars.
So, given the dollar's demise, who can lay credit to it faultering? And, when exactly (or within the ballpark guess) did it's demise start?
We've been running both a current accounts deficit (we buy more stuff from foreign countries than they buy from us) and a governmental spending deficit for years. We also have a net personal savings rate around zero. The fall of the dollar is just these chickens coming home to roost. Of the three, the personal savings rate is probably the easiest the fix in the short term. The fall of the dollar will help the first one (especially if we start doing coal to liquids to cut our oil imports) and the government deficit ones seems intractible.
Makes sense to me.
So, I am also reading into this that the FED throwing tons of money in the M&A company sink hole hasn't helped with strengthening the dollar either. And, just read recently that LEH stills needs more cash =/
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