The Independent published an article today, saying the Oil States are "secretly" planning to dump the dollar.

The demise of the dollar us-dollar-sinking
In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

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.

This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil – yet again turning the region's conflicts into a battle for great power supremacy. China uses more oil incrementally than the US because its growth is less energy efficient. The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold.

Really, this shouldn't suprise anyone. Considering the Federal Reserve has been (and is) running it's printing press at full speed, something like this is inevitable. Keynesian so-called "economics," has serious consequences.

Quite frankly, I'm interested in using the new currency myself! Though not perfect, their idea of a currency backed by a "basket" of other currencies and gold, sounds a lot safer than our Federal Reserve Notes backed by thin air if you ask me.

The Federal Reserve's monetary expansion is nothing short of a criminal enterprise. It's a couterfeiting plot to harm Americans (and everyone who trades with us) for the exclusive benefit of the State and it's banking allies.

We may not like some of these other countries, but let's get real! Washington has been deliberately destroying our dollar, why would anyone continue clinging to it? This is not an international crisis. It's a crisis right here at home.

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The World Moves Against the Dollar

President Obama is destroying the economic superpower status of the United States, and many sense that Obama’s trillion dollars in spending here and trillion dollars in spending there is accelerating it, but Congress and the White House will not listen.

Let's never forget ... George W. Bush played a significant role in this problem too. The Republican Party will never change, until conservatives are willing to call them out too! America is about "we the people," not some political party.

The Dollar Demise - Oil States Dumping US Dollar

Our economy and way of life is in a battle for survival.

Yes it is, and this is why the most important movement in America today, is the movement to End the Fed!

Oil States Dumping Dollar as Currency for Trading Oil

In order to entice countries to buy treasuries, the interest rates will have to jump substantially higher. And when this happens, the cost of the US government’s debt will start to rise. As will the cost of borrowing for US citizens and businesses. The government already pays nearly a billion dollars a day in interest payments If this cost were to double, and we add in the additional $9 trillion in debt the white house has admitted it is likely to borrow, we’re looking at over a trillion dollars a year in debt payments.

In order to repay this interest (and maybe the original principle too), do you think the government is likely to raise taxes or just print more money? If it prints more more, its just fueling the debt spiral which will lead to Zimbabwe-type hyper-inflation.

The Dollar: Down But Not Out

If Arab and other oil producers are indeed looking to move away from the dollar, they have cause. The Federal Reserve has been too free and easy for years, pumping too many dollars into the world economy. Like anything else, too many dollars means each one is worth less.

Looking down the road, deficit spending is set to make matters worse. Unnecessary deficits under the Bush Administration have given way to colossal deficits under the Obama administration, plus a free-for-all Congress that seems to be in charge of economic policy. When a government can’t control itself, its economic partners deduce they can’t trust the value of that country’s currency.

Much more can be found at Memeorandum.

What say you?
  • sdbjd November 4, 2010 at 12:48 am

    secret?
    How could you labeled others dealing as secret when the dollar is in doldrums?