844. To save the dollar by hitting the Euro (7/17/2014)Someone argues,
Originally Posted by imaginethat
Russia is the world's largest exporter of oil. Any increase in the price of oil benefits Russia.
That’s true. But oil price is the fastest way to adjust the demand of the dollar. We saw then the Euro – an alternative to the dollar, is threatened.
Portugal bank crisis shakes investor confidence
By Brigitte HagemannJuly 10, 2014
Lisbon (AFP) - Fears over the health of Portugal's largest listed bank, Banco Espirito Santo, sent its shares into freefall Thursday, shaking stock markets in Lisbon and across Europe and even the Atlantic.
http://news.yahoo.com/portugals-financial-system-weak-pockets-imf-182844328.html
Euro is the reserve currency next to the dollar. When dollar is weak that oil buyers have to use Euros for payment to Russian oil, what if Euro’s value is threatened? Similar situation had acted four years ago when US had a financial crisis (the bankruptcy of Leman Brothers caused by sub-prime loan collapse), US resolved it by introducing the Greek financial crisis.
Wall St. Helped to Mask Debt Fueling Europe’s Crisis
By LOUISE STORY, LANDON THOMAS Jr. and NELSON D. SCHWARTZ
Published: February 13, 2010
Wall Street tactics akin to the ones that fostered subprime mortgages in America have worsened the financial crisis shaking Greece and undermining the euro by enabling European governments to hide their mounting debts.
As worries over Greece rattle world markets, records and interviews show that with Wall Street’s help, the nation engaged in a decade-long effort to skirt European debt limits. One deal created by Goldman Sachs helped obscure billions in debt from the budget overseers in Brussels.
http://www.nytimes.com/2010/02/14/business/global/14debt.html?partner=rss&emc=rss&_r=0
If the high oil price would benefit enemy Russia, then US has to dig into the foundation of ally’s wallet. Last time the ignition was Greece, this time it is Portugal.