ORAC
Thanks for the tip.
I followed your link in order to find the debunking of the theory on economic grounds (and, believe me, I am no economist). It looked a bit busy, but I did find this:
First would be that historically US Dollar purchasing power is less volatile than many currencies in the world. Remember, we cannot just look at relative exchange rates of currencies, but what they can purchase. So if you are afraid of your own currency devaluing from a purchasing power standpoint, you will want to hold US Dollars.
But isn't the point of the article that the US Dollar might
no longer be so 'unvolatile', if it were no longer the currency of choice for the exchange of staple commodities (of which oil is undoubtedly one)?
Sounds a bit like 'The dollar will be OK because the dollar has always been OK.'
Or am I just being naive?
Gadget