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The Demise of the Dollar
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
By Robert Fisk
Tuesday, 6 October 2009
Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Image
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.
Snip
Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018.
Related articles (from The Independent)
Sean O'Grady: China will overtake America, the only question is when
Leading article: The end of the dollar spells the rise of a new order
Comment: When I see headlines like this I try to recall the old advise, sell on the news. The implementation of this is 2018 which is about as reliable as the four years President Obama says it will take to implement the vaunted insurance exchange. At this point, this makes sense to a degree. Bush-Cheney and their patrons/masters spent eight years tearing down the United States. Combine that with the manufactured financial crisis and Robert Fisk gets to gloat a bit. Hopefully, by 2018, oil will not be an issue driving currency and exchange. By that time, lets hope that oil, the homage to dinosaurs, will be a thing of the past and the international exchange will be collaborative Linux type open source projects on a variety of vital issues. Michael Collins
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