It is possible that Iceland is the tip of the iceberg, the first domino to fall, albeit a very small one.
The bigger the reserves get, the more nervous China is likely to be about keeping them predominantly in dollars. China's probably not going to do a lot with its existing reserves, but what it might do is put a smaller portion of its new reserves into dollars.
If we had 70.0 dollars per barrel on oil prices in the midst of a recession, I would be very worried, but 70.0 dollars when the world economy is growing at over 4.0 percent is not such a big worry.
Russia is not sending the right signals at the moment.
There are clear expectations that the pace of appreciation is going to accelerate and that's reassuring because it's one of the key factors in easing trade tensions with the U.S..
The emphasis on energy is not surprising because it is one of the few things they can all agree on, but there are bigger threats to the world economy at the moment.
There are more macroeconomic reasons for the Americans to be more concerned than the Europeans.
Given its position at the head of the G8, it won't want this matter to drag on for too long.
There is the risk the investment boom in China turns to bust and that would have a knock-on effect on the rest of the world. Higher rates may take off some of the froth from commodities markets which have benefited from the investment boom.
Other things being equal, higher oil prices will mean weaker economic growth, but the question is weaker relative to what.
