"Kuwait unshackled its dinar from the tumbling U.S. dollar on Sunday and switched the exchange rate mechanism to a basket of currencies, throwing plans for currency union with other Gulf Arab oil producers into disarray."Sensing a trend here, folks? What's going on here is a direct result of the last 6 years of Republican "fiscal conservatism." Because they have spent so much money, and shackled us with so large future payments with the war and the prescription drug plan, the U.S. Dollar is weakening. As a result, other countries are abandoning the Dollar for their daily use and as a peg to their own currency. Way to go "fiscal conservatives!"
UPDATE 4-Kuwait drops dollar peg in blow to Gulf currency union | News | Economic News | Reuters
Wednesday, May 23, 2007
Kuwait Drops U.S. Dollar Peg
at 4:18 PM