Posted on 10/05/2009 3:12:43 PM PDT by benjibrowder
ARAB STATES LAUNCH SECRET MOVES WITH CHINA, RUSSIA, FRANCE TO STOP USING DOLLAR FOR OIL TRADING... DEVELOPING...
If true, this is not good news.....
Crap, if this is true, this is the end of the dollar.
Is Saudia Arabia one of the arab states? If so, why do many FReepers here still believe it’s an ally?
If they don’t want dollars, time to drill in ANWR.
Thanks to Obama and a spendthrift DemocRAT congress we are about to become a third world country.
I’ve heard for years if we stopped trading oil in dollars, the dollar will crash. Do you think this is true?
Not real secret, obviously.
Yep, we’re halfway there anyway. Might as well make it official.
If this is true expect to pay $20 for a loaf of bread
With the bafoons we have had running this country the last 13 months, I would start looking for a different medium of exchange as well.
I don’t understand why this would be the “end of the dollar”. It would reduce the need for the dollar to a degree but anyone wanting to buy or sell from the US would have to convert euros into dollars or dollars into euros as the case may be. It those situations, it would increase the currency transaction costs but have little additional effect.
Well, Obama doesn’t want victory, doesn’t want us better than anyone else, and he’s the guy whose job it is to be our biggest defender. I’m sure Soros won’t cry about this either.
Is there a precedent in history for a country’s leader to trash talk it, and take on so much debt that it becomes insolvent and impotent?
If you ever want something posted on Drudge or FreeRepublic, just call it ‘secret’.
Being the world reserve currency soaks up dollars, which dents the inflationary effect of deficit spending and Fed expansions.
Bush started the stripmining of that privilege, Obama is worse by 10x.
Structural Changes – Destruction Of The U.S. Dollar
Here's part of it:
Factors Destabilizing the Dollar
- Oil Trading in Euro and the Iran Oil Bourse
- The real-estate bubble starts collapsing
- Bank of China’s decision to allow investors to buy and sell gold using their USD
- Continued increase of U.S. public and trade deficits in 2006
- Growing doubts in the U.S. themselves on the reliability and interpretation of US economic statistics
- The Potential for Military Intervention in Iran
- Increasing risk of Conflict with China
The Future of Oil Trading in Euro - Creation of the Iranian Oil Bourse
One of the elements of the plan includes the pricing and trading of oil in Euros. For the plan to work oil producing countries and purchasers will gradually convert the oil trading to alternate currencies. The primary issue is when will the Euro be a significant currency of oil trade—not specifically on the Iran Oil Bourse. With the conflicts existing between the Shia and Sunni countries, the IOB may not have the major impact some anticipate. Iran oil production amounts to 4 percent of world oil.
Iran's opening of an Oil Bourse priced in Euros (And possibly ultimately in the Islamic Gold Dinar.) was originally planned to initiate operations at the end of March 2006. According to the Iran Ministry of Petroleum the delayed opening is a result of “technical glitches.” No new date has been set. While Pravda on January 21 indicated that the IOB opened. The opening may be the end of the monopoly of the Dollar on the global oil market and potentially impact the Dollar as the reserve currency for world trade. The longer-term result is likely to upset the international currency market, as producing countries will be able to charge their production in Euros also. In parallel, European countries in particular will be able to buy oil directly in their own currency without going though the Dollar. Concretely speaking, in both cases this means that a lesser number of economic actors will need a lesser number of Dollars. This double development will thus head to the same direction, i.e. a very significant reduction of the importance of the Dollar as the international reserve currency, and therefore a significant and sustainable weakening of the American currency, in particular compared to the Euro. The most conservative evaluations give €1 to $1.30 US Dollar by the end of 2006. But if the crisis reaches the scope anticipated, estimates for the Euro in 2007 are even higher.
In researching the effect of the oil being traded not in dollars... came across this and it’s a little more scary.
Heck, this is just a few weeks ago and a REAL person in Asia.
http://www.marketoracle.co.uk/Article13455.html
Our way of life, often based on consuming far beyond our means, is being flat-out rejected.
I can’t even exchange a $100 bill on the street here anymore: Most of the street money changers will take euros, Singapore dollars, even Chinese yuan. But fearful of losing their shirt with sinking exchange rates, they don’t want U.S. dollars.
Not long ago, I never traveled without my American Express card. Now, it sits in my office safe. Many in Asia no longer accept the card anymore. MasterCard and Visa are still OK, but they’re also losing market share to locally grown cards like Aeon.
The running joke in Singapore, Hong Kong, Bangkok, and Kuala Lumpur is that the U.S. is the place where even your pet could get a credit card or a home mortgage.
So to Asians, the crisis we’re going through is our own fault. And although it was also caused by blunders in Western Europe and other regions, truth be told, they are mostly right.
The sky is falling!
It’s because all of those petrodollars in circulation will no longer be needed and the marketplace will be flooded with the excess dollars. It’s a supply/demand thing. Dollars will still likely have some value, but their value will be greatly reduced because of an overabundance of dollars in the world (since petro transactions will no longer soak up a ton of the supply).
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