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Is This What's Going On?

Reported by Melanie - December 6, 2004

Earlier today I posted this: Blame OPEC, It's Easier than Being a Grown Up.

Meanwhile, I just came across an article titled: Opec sharply reduces dollar exposure, at the website of London's Financial Times. The article says, in part:

Members of the Organisation of Petroleum Exporting Countries have cut the proportion of deposits held in dollars from 75 per cent in the third quarter of 2001 to 61.5 per cent.

Middle Eastern central banks have reportedly switched reserves from dollars to euros and sterling to avoid incurring losses as the dollar has fallen and prepare for a shift away from pricing oil exports in dollars alone.

Private Middle East investors are believed to be worried about the prospect of US-held assets being frozen as part of the war on terror, leading to accelerated dollar-selling after the re-election of President George W. Bush.

COMMENT: Is this why the Bush-loving Fox News channel is priming its viewers to hate OPEC? Our economy depends not only on oil but on foreign investment in our dollar. If foreigners are abandoning the dollar due to the Bush administration's policies, what better way to divert attention away from the dollar's troubles (and Bush's policies) than to make those who are taking their money elsewhere appear to be the bad guys? The bonus point is that if oil and gas prices rise this winter, that's their fault too (not Bush's lack of leadership in the energy area).

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