Tuesday, June 17, 2008

The Debts of a Nation: Speculators and Regulators

"The dollar," said Canadian Finance Minister Jim Flaherty at the Group of Eight (G-8)meeting of his colleagues last weekend in Osaka, "is a market currency." And "one does not interfere with a market currency".

The G-8 finance ministers basically admitted there was not much they could do about the recent worldwide increases in the price of oil, which has more than doubled from a year ago, or, for that matter, other commodities. All that they could bring themselves to do was to commission a study from the International Monetary Fund to determine what effect speculators may be having on oil supplies.