The Demise of the Dollar
Wow:
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.
Hope and change.
October 6th, 2009 at 9:16 am
These same discussions about the viability of the dollar and veiled threats to dump it as a reserve currency took place during all 8 years of the Bush admin, too.
October 6th, 2009 at 9:44 am
Scary to think what this could all mean to oil. I think the run-up to $5 a gallon gas awhile back was just a test. The price dropped back down but I’m pretty sure it’s gonna go back up to $5 and stay there. It’s the same thing that happened when gas prices first went up to the $2 range.
October 6th, 2009 at 11:30 am
“Secret meetings” have been held. Please call me when it is being discussed openly at OPEC.
October 6th, 2009 at 11:39 am
Given that the author of the piece has had his name turned into a verb meaning “to tear apart a smelly piece of journalism” I’m taking this report with a grain of salt.
Not that I think Robert Fisk is an unreliable source; it’s just that, well, on second thought I guess I do consider him an unreliable source.
October 6th, 2009 at 1:29 pm
Hate to break it to you, but there has been talk of this not only for the Bush years, but even in the Clinton years and probably before that too.
October 6th, 2009 at 3:50 pm
You people really should be reading Michael Shedlock.
http://globaleconomicanalysis.blogspot.com/2009/10/why-would-anyone-want-to-hold-dollars.html
October 6th, 2009 at 8:38 pm
Hard to predict the financial landscape ten days from now, let alone ten years, but this is a fact: Friday, the US dollar bought 13.8 Mexican pesos. Today, the US$ will only buy 13.4
When our currency shrinks against one of the most unstable currencies in our hemisphere, we’re in trouble.
Note also gold: last week, 991, today 1038.
Yep, those dollar-based investments are going to tank, boys and girls. Buy Euros, that’s what the Argentines did when their currency tanked.
October 7th, 2009 at 1:00 am
Second reading Mish geez guys