andrewbuonocore.com

OK, twitter is turned back on!

According to the BBC, supermodel Gisele Bündchen is refusing to accept payment for her work in US Dollars because she has concerns about the stability of the currency.

Instead, she has asked for Procter & Gamble to pay her in Euros.

I think it’s the most significant story of the year.

Perhaps a model asking for payment in Euros instead of Dollars is not significant on the face of it, but what if it were not a model, but a major oil producer asking for payment in Euros instead of Dollars?

If the OPEC members railed against the Dollar and decided that the price of Crude oil would be denominated in Euros, then the USA really would be struck with higher prices at the pumps. Not only would they have to stomach the upward creep in the price of oil, they would have to cover currency fluctuation too.

If the price of oil and the Dollar both went in the wrong direction, there is no ceiling on the liability of Americans in terms of what they will have to pay to fuel their thirsty vehicles.