Soros: Dollar tied to oil

[spotbird]

Soros: Dollar tied to oil

Billionaire investor says oil exporters' shift to euros hurts value of dollar.


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Soros told delegates to the Jeddah Economic Forum that the dollar's fall should help to lower the U.S current account and trade deficits, but warned that a fall beyond an undisclosed "tipping point" would severely disrupt markets.

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"The oil exporting countries' central banks ... have been switching out of dollars mainly into euros and Russia also plays an important role in this. That is, I think, at the bottom of the current weakness of the dollar," Soros said.

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In later comments to Reuters, Soros said the U.S. current account deficit could be financed at the current level of the dollar. "There are willing holders of the dollar. There are the Asian countries that are happy to accumulate dollar balances in order to have an export surplus and a market for their dollars," he said.


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http://money.cnn.com/2005/02/21/news/international/bc.financial.soros.dollar.reut/

[teryang]

1. Greenspan can't explain why the yield curve is flattening?

<"A flattening of the yield curve is usually an indication of a slowing economy, but here I don't know," Soros said.>

[Randi_Listener]

2. Layments terms?

Is this yields from stock dividends or something else?

[54anickel]

3. It's the yield on debt - interest rates long term vs short. Here's a

recent article. The concern is that they will invert.

http://moneycentral.msn.com/content/P108470.asp

[laheina]

4. Check this out!

I found this yesterday, somewhere on DU. Not that I don't take Soros's word for it...

http://globalresearch.ca/articles/CLA410A.html

[NJCher]

5. makes sense

How very thuggish of them.


Cher