The US dollar is exceeding even what we might think of this phase of the Iraq War, the crude oil price (above US$63/barrel) and twin deficits: 1 Euro = 1.337 USD... Similar, but not quite, as the crisis of the Vietnam War and oil price spikes, the dollar depreciation continues: a known strategy of softening the economic and financial effects of war and oil price increase.
There can be no hope of short-term inversion of this scenario until the pull out of american troops from Iraq occur and competitive forms of automotive energy becomes viable. Even that doesn't seem to solve the problem. With US army out, Iraq War, then with its neighbours (Syria and Iran and Saudi Arabia) involved, will claim huge sums of money and this very III World War with the islamic fundamentalism, that we suffer, will continue. The world is dangerous and so the markets will maintain its present turbulence and risk.
