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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (46517)	2/15/2006 3:18:14 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 116555

I think you are missing the point entirely. It may be true that 1% of US trade is with the mideast in oil (not verified it myself, but will assume it is so), but that is not relevant. What is relevant is -- 100% of the world oil trades are in USD. Venezuela doesn't need to keep USD assets because the last time I checked, Venezuela was an exporter of oil, not an importer. Look at major oil importers - Japan, China, India... and ask why they keep USD assets. And why they should keep so much USD assets if oil is priced in (or even jointly in) another currency as opposed to solely in USD.