Jane Fonda made a goofy movie back in the mid 70s, when the amount of US debt held by overseas kleptauchracies was lower, we produced more of our own gas and gold was a lot cheaper.
The premise of the movie was that the Shah and the Saudies got pissed at the US for some reason, and decided that from then on, they didn't want to take US debt for payment for the oil, they wanted Gold instead. It was a goofy premise, and I remember a WSJ editorial piece lambasting the movie for its many stupidities, most of which I have forgotten.
Anyway, 30 years on, it is no longer a matter of politics. Huge amounts of US debt are being held by foreign despots. Who are loosing money on it. The Euro is rising, the dollar sinking and 0bama is trashing the US economy. If you are sitting in Riyadh or Beijing.. What is keeping you from racing to the door and saying "Euros only from now on." Especially given the news of the last month with the 0bamacare passing.
Granted, the Euro, with Europe's problems, isn't that hot a deal either. But what is keeping these guys in greenbacks right now? And how long will this continue?
