Given the latest OPEC discussions, I am curious how oil prices, U.S. dollar, and commodities in general will perform on Monday. According to the New York Times article Critics Assail Weak Dollar at OPEC Event (free registration required), Venezuelan President Chavez and Iranian President Ahmadinejad made disparaging remarks toward the U.S. dollar.
“The dollar is in free fall, everyone should be worried about it,” Mr. Chávez told reporters here. “The fall of the dollar is not the fall of the dollar — it’s the fall of the American empire.”
During a news conference after the meeting, Mr. Ahmadinejad added: “The U.S. dollar has no economic value.”
Mr. Ahmadinejad said that oil, which was hovering last week at close to $100 a barrel, was being sold currently for a “paltry sum.” And Mr. Chávez predicted that prices would rise to $200 a barrel if the United States were “crazy enough” to strike at Iran, or even at his own country.
If these two clowns do have an effect within OPEC to switch away from the U.S. dollar, then that might have an adverse effect on the dollar. I also curious if their actions will encourage others to want to diversify their currency holdings. Do Russia, China and other countries make more of a concerted effort to diversify?
I am not sure what to make of this development. However, it does bear watching.
Model Linda T along with Cam, an actor at Heritage Park, are featured in the photograph, which is hosted at Flickr. If you click on the picture of Linda, you will be taken to where you can view a larger version and see even more pictures of her.
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