This week’s Georgia Straight had an interesting article by Braun McAsh about the connection between the US dollar and oil.
My understanding is that oil has always been bought and sold in US dollars only, creating a substantial global demand for the US dollar and keeping the dollar’s value high against other countries’ currencies.
Shortly before the US invaded Iraq, Iraq had started selling their oil for Euros too. Iran started selling their oil for Euros on March 23, 2006, which is why they are now on the US radar according to McAsh.
Here’s a link to the article, which is much clearer than the blurb I’ve written here:
Military action may halt currency meltdown
By Braun McAsh Publish Date: 4-May-2006
Let’s imagine that one morning you awake to find that gasoline is $10 a litre at the pumps. The Canadian dollar is worth half the U.S. dollar, which itself has been seriously devalued against other currencies. Any product that requires gas to transport to market now goes for 10 times its previous value—$12 for a head of lettuce, for example. Absurd? Consider the following.
While drinking my coffee this morning I was thinking about Calgary’s loss last night. It occurred to me, then, that the top four teams in the Western Conference were knocked out in the first round of this year’s NHL Playoffs.
NHL Playoffs first round results:
Edmonton (8th) beat Detroit (1st)
Colorado (7th) beat Dallas (2nd)
Anaheim (6th) beat Calgary (3rd)
San Jose (5th) beat Nashville (4th)
Things were exactly opposite in the Eastern Conference, where the top four teams downed their opponents.
Stephen Colbert’s brilliant performance unplugged the Bush myth machine — and left the clueless D.C. press corps gaping.
By Michael Scherer
May 1, 2006 | Make no mistake, Stephen Colbert is a dangerous man — a bomb thrower, an assassin, a terrorist with boring hair and rimless glasses. It’s a wonder the Secret Service let him so close to the president of the United States.