Posted on 12/17/2009 2:40:23 AM PST by Scanian
The dollar's role in world trade is declining almost as rapidly as the federal government is conjuring fiat money out of thin air. The latest blow comes with the creation of a Gulf Monetary Council, with the aim of establishing a multinational petro-state currency. Ambrose Evans-Pritchard reports:
"The Arab states of the Gulf region have agreed to launch a single currency modelled on the euro, hoping to blaze a trail towards a pan-Arab monetary union swelling to the ancient borders of the Ummayad Caliphate.
'The Gulf monetary union pact has come into effect,' said Kuwait's finance minister, Mustafa al-Shamali, speaking at a Gulf Co-operation Council (GCC) summit in Kuwait. [....]
Saudi Arabia, Kuwait, Bahrain, and Qatar are to launch the first phase next year, creating a Gulf Monetary Council that will evolve quickly into a full-fledged central bank.
The Emirates are staying out for now - irked that the bank will be located in Riyadh at the insistence of Saudi King Abdullah rather than in Abu Dhabi. They are expected join later, along with Oman."
The ultimate goal? A Pan-Moslem currency, beginning in the Gulf, backed by oil and gold and spreading to all Islam-dominated nations as a refutation to what they consider "Jew" banking and the Jews' fiat derived currencies.
(Excerpt) Read more at americanthinker.com ...
The headline at Marketwatch is “Dollars Revival Heats Up” ,, what buffoons ,, Greece is imploding and European money is coming back here temporarily but the USD is definately not reviving.
“Ah yes, everything is proceding as planned.” Chuckles the evil genius Barak Obama as he rubs his hands with glee!
It may be possible but I find it hard to believe that these so called states that are in reality merely rival tribes that have grown to the point of being ungovernable could ever put aside their ancient feuds long enough to put together a common system of exchange.
The levels of suspicions that exist between them has thwarted every attempt they have ever made to achieve a common goal.
...except commerce.
Maybe they all suspect the “Hidden Imam” may now be seen.
Curious that our new friend on the block, Iraq, is not mentioned here.Considering the size of their proven reserves, you’d think they would “want in”.
The Euro is falling to pieces. Why would an oil currency fare any better?
I think it’s about the Gulf states, the GCC. Perhaps they’re still wary of Iraq and don’t want to get embroiled with Iran and Iraqi politics. I could see them adding Iraq in the future but Iraq has some issues to sort out first I think.
Yet, gold is falling in value on the news right now.
Their most visible effort at cooperation in commerce is OPEC. OPEC’s only success was in the about 40 years ago and that was mainly a political action and had nothing to do with commerce.
OPEC’s members are famous for cheating on their production quotas. Sure the oil producing countries are rich but when you look at the non-oil producing states they are backward poverty stricken cesspools of crime, violence and ignorance none of which are conducive to commerce.
Even the rich Arab states are hardly a hot bed of commerce. Out side of the royal families there is a tiny middle class and the rest are typically living in poverty or as they have for thousands of years as nomadic sheep herders.
A lot of hot air. Look at the recent problems with Dubai. Also, the Koran does not permit them to charge interest; a major problem. The reason Jews historically became bankers is that it was beneath the moslems to be “money changers”. Same reason there are so many Jews that own their own businesses....anti-semites wouldn’t hire them.
Nothing could be finer than a single All-Arab dinar . . . .
Going to their own currency is a gutsy move to essentially use a hard asset (oil and gold) backed currency. It's a risky move as it delinks them from industrialized economies, namely the US. I think it will have some initial success but will ultimately not serve their best interests as the currency will fluctuate much more closely to corresponding commodity prices.
Saudi Arabia and GCC are uncomfortable with Iraq because it is a democracy that has a government elected by a Shiite majority. Saudi Arabia and GCC rather have a Sunni dictatorship than a democracy.
Im not sure this plays out in such dire fashion.Blocs of countries that choose the options of birthing new currencies also dilute the pool of perspective reserves.Something like this also depresses every other currency that is the supposed successor to the USD.
More hype.
I guess I should have said “doesn’t suck as bad as other currencies” instead of “not reviving”.
Well they have to do this if that imam in the well guy is going to show up.
I wonder if he has prune fingers after all this time in the water.
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