The U.S. could soon find itself scrambling to make up 11 percent in lost oil imports.
Mexico, the third-largest foreign supplier of U.S. oil, faces the real possibility of having to halt oil exports in four years, a former top Mexican energy official was reported as saying Tuesday in Mexico’s El Universal newspaper.
- The equity markets stay flat. Market's move up or down, or remain in a range... they do not stay flat. But let us say in this case it does. I have no idea how that affects the currency.
- The equity market rises. Money is drawn to assets and away from currency. The currency loses appeal (and value).
- The equity market falls. The Fed steps in, prints more money and/or the Treasury floats more bonds in order to create an equity TARP. This hardly bullish for the $.
- The equity market falls. The Fed does nothing. Raising capital becomes nearly impossible in both the credit and equity markets. The U.S. economy contracts violently, again, hardly bullish for the US$.