Saturday, December 08, 2007

What do you mean my money's no good?

Iran drops the dollar:

Iran has completely stopped selling any of its oil for U.S. dollars, an Iranian news agency reported on Saturday, citing the oil minister of the world's fourth-largest crude producer.

The ISNA news agency did not give a direct quote from Oil Minister Gholamhossein Nozari. A senior oil official last month said "nearly all" of Iran's crude oil sales were now being paid for in non-U.S. currencies.

For nearly two years, OPEC's second biggest producer has been reducing its exposure to the dollar, saying the weak U.S. currency is eroding its purchasing power.

Iranian President Mahmoud Ahmadinejad, who often rails against the West, has called the U.S. currency a "worthless piece of paper."

Is there any greater indication on how far the dollar has fallen that even our "enemies" don't want it? The dollar has lost nearly 40 percent of its value in the past 7 years and the smoke and mirrors that the government has been using (not publishing m3, central bank bailouts, etc.) to mask that fact are not going to work. Our fundamentals are unsound.

The questions remain who are the people going to blame? What direction are we going to go to solve the problem?

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