Posted on 10/06/2009 7:38:52 AM PDT by SeekAndFind
In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.
Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.
The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China’s former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. “Bilateral quarrels and clashes are unavoidable,” he told the Asia and Africa Review. “We cannot lower vigilance against hostility in the Middle East over energy interests and security.”
(Excerpt) Read more at commoditytradealert.com ...
Gold up like a rocket this morning. $1.042.
Soros and his lackey slave Obummer are trying to destroy the US dollar just as Soros did to the British currency.
I wonder what China would think of such a move as they own our great debt.
A gross intentional or conscious neglect of duty in my book
In layman’s terms, what will be the effect of this change? Will it further weaken the dollar exchange rates?
I think they have a long way to go with this. The Chinese currency, last time I checked, is not freely convertible and is pegged by the government. Until the Chinese freely float their currency and allow it to be freely traded, this dog won’t hunt.
Soros and his lackey slave Obummer are trying to destroy the US dollar just as Soros did to the British currency.
I wonder what China would think of such a move as they own our great debt.
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Boy, you are just setting the table there for the conspiracy theorists to party like it’s 1963....
Short term, probably more pain.
Long term, it may just be what this country needs.
“I wonder what China would think of such a move as they own our great debt.”
From what I have read, China is only buying new bonds 5-yrs or shorter maturity. I speculate that a lot of their commodity dealsin africa and whatnot are being paid in their longer-dated treasury paper. They know they aren’t getting out of their dollar exposure completely, but they are doing a lot to try to limit the damage.
No one has any real choice on the reserve currency issue, the US is debasing their paper and it simply isn’t a good instrument anymore.
Related on the debt stuff, the 100billion in treasury notes carried by two japanese nationals into switzerland has just vanished off the radar. They were RELEASED (not arrested). Treasury refused to ever make a serious comment on the event.
“In layman’s terms, what will be the effect of this change? Will it further weaken the dollar exchange rates?”
From one layman to another, I think that is a safe assumption. Prices for everything, and especially imported items, will go up as the dollar loses value and purchasing power. There are too many factors to predict the future, but I expect the worse even as I vainly hope for the best. I am thinking in survival terms now. What items do you need to live? Stock up prudently while you can.
Nah, those guys were filipino from what I’ve read. If you google their photos you may find that you concur, based upon their appearance, fwiw.
The Phillipines has a history that is absolutely perfect for con artists, and this isn’t the first time by any means, usually weaving romantic stories of crashed B24 bombers lost in the jungles full of treasures, secret intriques with various governments, etc. Counterfeit government securities are nothing new, but wouldn’t you be initially skeptical of even one 1934 dated instrument denominated in a cool billion? The “Kennedy” bonds shown in the photos would ostensibly have been issued sometime in the 1980s, judging from the depiction of the space shuttle, though none were issued that anyone knows about.
the incident has a number of very puzzling details. The men appear to have been released, despite presumably carrying forged currency instruments.
There is a story behind this incident which is simply not being told. Who is going to even deal with bonds with these face values without verifying them with Treasury?
Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil,Oh those silly new world order people./s
Well, they might not fool you or me, or swiss customs agents, but if they may be able to fool someone - that’s the idea. Pledge bogus securities as collateral, and borrow legitimate currencies/credit.
With Obama as president, we don't stand a chance.
$12.99 a gallon gas.
If you can find a pump somewhere that even has any.
Seriously.
Agree the ship is sinking fast.
Mebbe completely off-topic as the Icelanders evidently had their debt denominated in curriencies other than their own, but I suspect something like the below will happen to many middle class Americans. The writer was responding to comments generated by THIS ARTICLE:
It was a really bad call for sure for the Icelandic Government to change the laws but without it Icelandic Economy would be far worse off than it is now. Do you know how bad it is? If drastic things don´t happen during the next year most likely 50% of all homes in Iceland will go bankrupt!
Yes, I´m from Iceland. I´ll give you an example how a middleclass home looks like right now by giving you a peek into mine. I´ve lost ALL my savings, 35% of my pension lost, one unemployed in the family and the other got it´s wages cut cause companies just can´t cope, My loans have doubled in montly payments, Buying power of my salary has gone down 50%, The millions of ISK I owned in my house has gone to negative equity, I eat 14 meals of porridge every week :)
You just try to work on those numbers with what you got and try to calculate how you are gonna cope!! The government had to allow us to take out some of our pension funds and people are using it just to cope. And on top of that you are asking us the Icelandic Nation to pay for the debts of a privately owned bank!! I didn´t own that bank and surely did nothing to deserve paying their debt.
Cause I voted for st..id people and finance regulations in Europe are greatly flawed should I pay for it more than you... or the 12.000 people in England? If you are from England you probably didn´t vote for the brightest of the bunch either but why arent you expected to pay? You probably don´t care so please go on kicking me down.
I´m relentless and will not give up but it would make it easier to me and this small nation if you could show some understanding and back off a little! Look before you leap. :
Bump
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