VHeadline.com reports that the Central Bank of Venezuela has approved international currency transactions in Euros in order to diversify its finances away from the U. S. dollar, in accordance with the policy of President Chavez to loosen the influence of the dollar on the Venezuelan economy. Chavez has gone on record as supporting a move by OPEC to scrap the dollar as the standard currency for oil and substitute the Euro. Venezuela had earlier this year sold off its U. S. debt instruments and replaced them with debts in other currencies.

A move away from the dollar as an international settlement currency would not bode well for the U.S. or the rest of the world economy. It's hard to blame Chavez, though; the Bush administration has done everything short of an invasion to depose Chavez and void the Venezuelan Constitution. Chavez, however, does not fear an invasion from the U.S. as our forces are tied down in Iraq and otherwise over-extended.

The next few years are going to be a bumpy ride. Fasten your seat-belts.