Daily Archives: November 22, 2007

Gideon Rachman

I recently wrote a column on the political consequences of $100 oil, which drew quite successfully (I thought) on an earlier discusssion on this blog. So I would like to repeat the experiment.

There is no shortage of analysis of the global economic consequences of the falling dollar. But what about the global strategic consequences? Over the long term, a feeble currency is usually both a symbol and a cause of national decline. I’m not sure you can yet read anything too profound into the current movements in the currency markets, although Hugo Chavez is doing his best.

Still, even in the here-and-now, I think there could be political ramifications to the falling dollar. Off the top-of-my-head, here are four possibilities:

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