The demise of the dollar (secret moves overseas to stop using the US currency for oil trading)

Commodity Trader Alert ^ | 10/6/2009

[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.”

[WoofDog123]

I cannot see an entity taking bonds demoniated at a minimum of 500,000,000 from a couple of guys alleged to be from who knows where and not verifying them. If the amount shown to any one prospective party were big enough, it would mean only japan china and UK could be the source of the bonds.

Something is very wrong with the story elements known so far, but we may never know the truth. The guys were released. They were not charged, etc.

[uncommonsense]

I don't blame the international financiers. Read this CBO report The Long-Term Budget Outlook. Page 18, Figure 1-2, shows that we are under water now and forever. From a footnote on the graph:

Spending in this figure excludes interest payments on the debt; hence, the gap between federal revenues and noninterest spending shown here does not equal the projected surplus or deficit.

Also read this speech from the Dallas Fed President, Richard W. Fisher, May 2008: Medicare Unfunded Liabilities worse than Social Security - 2008 Dallas Federal Reserve Speech. He shows we have an unfunded liability of $100 Trillion (that was before we kicked into high gear with gov spending).

No matter how we proceed (gut congress, rescind entitlements, slash taxes, etc.), we are so profoundly deep in debt - personal debt and public debt - that it will take a long-running perfect storm of wildly positive conditions and outcomes in order to remain solvent as a nation.