VodkaPundit

Sand Dollars

The Financial Times worries about the flight of Saudi oil dollars to Europe:

“Watch for Middle Eastern asset switches out of US dollars into the euro,” UBS Warburg’s London-based fixed-income team advised in its daily note. “If a trickle becomes a flood, it could force the spread [of US Treasuries to German bonds] wider in double-quick time.”

David Brown, chief European economist at Bear Stearns, said if Saudi holdings in the US were cut drastically and in a very short time, “there could be an influence on the dollar”.

That last line explains why I