>I don't want to speak to WG's macro strategy,
>but on the narrower point,
>If I owe you dollars, you have no right to demand
>payment in something else. A deal's a deal. If
>you didn't hedge to protect yourself, it's your
>own damn fault.
I leaped to a conclusion. Good correction, Max, and thanks.
Still, I think that a devaluation must lead to higher prices even if the seller hedged. What I'm thinking is that, sure Saudi Arabia gets paid in full thanks to hedging, minus the cost of hedging, but now Europe appears to be more profitable for oil than the US whose dollar is now devalued, unless the price of oil is raised to compensate.
So, why wouldn't Exxon cut back sales in the US in favor of the more profitable market in Europe until US prices are raised high enough?
Or, am I still missing something?
-- John K. Taber