culture, politics, commentary, criticism

Tuesday, January 16, 2007
America's greatest hope: gradual decline. The American dollar, that glorious symbol of what nobody elsewhere seems to want anymore (
Investment News):
Before the euro marked its fifth anniversary Jan. 1, a number of countries demonstrated their trust in the European currency over the U.S. dollar -- a stark contrast to five years ago. The United Arab Emirates, home of the Middle East business epicenter Dubai, said at the end of last year that it would convert some of its reserves into euros from U.S. assets.

That followed Indonesia, Russia, Switzerland and Venezuela making similar moves, and China reportedly is considering a shift in its currency reserves, as well.

Iran and Venezuela also have proposed that the Organization of Petroleum Exporting Countries, based in Vienna, Austria, begin selling oil denominated in euros.

All this occurred as the euro rose more than 11% versus the U.S. dollar last year.

"Why should you invest in the U.S. [dollar] if you are Arab or Chinese or somewhere else in the world if you can in the euro?" asked Axel Merk, president of Palo Alto, Calif.-based Merk Investments LLC and manager of its Merk Hard Currency Fund (MERKX), which invests in a basket of hard currencies. The basket is filled mostly with euros.

For the one-year period ended last Monday, the fund, which was launched in May 2005, climbed 7.14%, compared with a 3.28% gain for the average world bond fund.

"The most positive thing for the dollar is, everybody hopes that its decline will be slow and gradual," Mr. Merk said.
And, in our infinite economic wisdom, Americans worry instead about pizzerias that accept Mexican pesos.

Greatest Hits · Alternatives to First Command Financial Planning · First Command, last resort, Part 3 · Part 2 · Part 1 · Stealing $50K from a widow: Wells Real Estate · Leo Wells, REITs and divine wealth · Sex-crazed Red State teenagers · What I hate: a manifesto · Spawn of Darleen Druyun · All-American high school sex party · Why is Ken Lay smiling? · Poppy's Enron birthday party · The Saudi money laundry and the president's uncle · The sentence of Enron's John Forney · The holiness of Neil Bush's marriage · The Silence of Cheney: a poem · South Park Christians · Capitalist against Bush: Warren Buffett · Fastow childen vs. Enron children · Give your prescription money to your old boss · Neil Bush, hard-working matchmaker · Republicans against fetuses and pregnant women · Emboldened Ken Lay · Faith-based jails · Please die for me so I can skip your funeral · A brief illustrated history of the Republican Party · Nancy Victory · Soldiers become accountants · Beware the Merrill Lynch mob · Darleen Druyun's $5.7 billion surprise · First responder funding · Hoovering the country · First Command fifty percent load · Ken Lay and the Atkins diet · Halliburton WMD · Leave no CEO behind · August in Crawford · Elaine Pagels · Profitable slave labor at Halliburton · Tom Hanks + Mujahideen · Sharon & Neilsie Bush · One weekend a month, or eternity · Is the US pumping Iraqi oil to Kuwait? · Cheney's war · Seth Glickenhaus: Capitalist against Bush · Martha's blow job · Mark Belnick: Tyco Catholic nut · Cheney's deferred Halliburton compensation · Jeb sucks sugar cane · Poindexter & LifeLog · American Family Association panic · Riley Bechtel and the crony economy · The Book of Sharon (Bush) · The Art of Enron · Plunder convention · Waiting in Kuwait: Jay Garner · What's an Army private worth? · Barbara Bodine, Queen of Baghdad · Sneaky bastards at Halliburton · Golf course and barbecue military strategy · Enron at large · Recent astroturf · Cracker Chic 2 · No business like war business · Big Brother · Martha Stewart vs. Thomas White · Roger Kimball, disappointed Republican poetry fan · Cheney, Lay, Afghanistan · Terry Lynn Barton, crimes of burning · Feasting at the Cheney trough · Who would Jesus indict? · Return of the Carlyle Group · Duct tape is for little people · GOP and bad medicine · Sears Tower vs Mt Rushmore · Scared Christians · Crooked playing field · John O'Neill: The man who knew · Back to the top

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