Petrodollars

How money is created, where it goes

The New York Times says the stash in oil exporting countries like Saudi Arabia and Venezuela is enormous...

This analysis is the kicker:

As more of the oil money is spent, the American economy may be left in a precarious position. Maurice Obstfeld, a professor of economics at the University of California, Berkeley, said, ``If oil exporters lower their current account surplus, we will have to reduce our current account deficit.''

Odd to think that a result of Bush's Jacksonian, Boltonist, anti-cooperative foreign policy is that America is at the mercy of financial decisions made in Saudi Arabia and Venezuela.