I’ve moved, and for the most part settled in, so with the exception of a week away coming up soon, I hope to get a bit more active in blogsville.
I’m thinking of reviewing some articles I started and put on hold and maybe putting them out to get me back on the horse.
27 February, 2007 at 10:32 am
Dear Steve – Can I make a readers request???
I would like an market head/economist smarter than me to unravel this whole USD/ Iran / Euro oil trading proposal and the effects it could have on the USD.
My take on it is that, in order to hedge future energy requirements traders have to buy USD denomiated hedgeing instruments, and that this massive “natural” demand for future USD reduces the USD forward points lower than they otherwise might be given the countries external debt levels.
Putting it another way, with all that oil in the ground priced in USD it acts as a defacto gold standard underwriting the value of the USD??
Any articles or guidance to clarify this?
Cheers
Rod