The UAE didn't send terrorists or try and test our
National Missile Defense program today in response to blocking the DP World deal last week. They did however move to hit us economically.
The
dollar moved down slightly against the euro recently and I believe it is going to go even lower if certain threats are carried out by numerous governments and institutions around the world. The U.A.E. is getting ready to
move 10 percent of their $23 billion in U.S. currency into euros. In the meantime the
U.A.E. - U.S. free trade talks have been halted.
Of course things like the high deficits and debt that the U.S. play a huge role when it comes to the dollar's solvency. Yet when you consider a multitude of foreign governments switching their dollars to euros, it can set off a tidal wave that could weaken the U.S. dollar significantly. Especially since we have been sending them our money to feed our enormous addiction to oil.
Any thoughts?