Gulf states, China, Russia, France and Japan to end conducting oil deals in USD

Discussion in 'Economics' started by ByLoSellHi, Oct 5, 2009.

  1. wavel

    wavel

    And now the denials begin to hit the media outlets... you gotta love reading between the lines...

    I'll tell you a little story...

    Once upon a time there used to be over 25 individual currencies here in Europe. What do we have today?

    USD/CAD hovering around parity...

    A north American currency to replace the ailing USD? The once great "independent" USD that is currently waxing and waning on a journey toward oblivion, purely because of "reckless" economic policy....

    Assuming a crime had occured, a detective would suggest that it wouldn't be a completely disproportionate consideration to rule out a pre-planned demise of the greenback, in order to continue a progressive shift toward a one world currency.

    The bigger picture? Or perhaps a crazy conspiracy theory? One merely needs to observe recent historical events pertaining to the current European economic model, for your answer.
     
    #31     Oct 6, 2009
  2. Acapulco cliff dive in the US Dollar Index?

    :cool:
     
    #32     Oct 6, 2009
  3. Arab states, China, Russia & 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.

    The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."

    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. An indication of the huge amounts involved can be gained from the wealth of Abu Dhabi, Saudi Arabia, Kuwait and Qatar who together hold an estimated $2.1 trillion in dollar reserves.

    The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China's extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states

    Brazil has shown interest in collaborating in non-dollar oil payments, along with India. Indeed, China appears to be the most enthusiastic of all the financial powers involved, not least because of its enormous trade with the Middle East.

    China imports 60 per cent of its oil, much of it from the Middle East and Russia. The Chinese have oil production concessions in Iraq – blocked by the US until this year – and since 2008 have held an $8bn agreement with Iran to develop refining capacity and gas resources. China has oil deals in Sudan (where it has substituted for US interests) and has been negotiating for oil concessions with Libya, where all such contracts are joint ventures.

    Furthermore, Chinese exports to the region now account for no fewer than 10 per cent of the imports of every country in the Middle East, including a huge range of products from cars to weapon systems, food, clothes, even dolls. In a clear sign of China's growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China's reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.

    Ever since the Bretton Woods agreements – the accords after the Second World War which bequeathed the architecture for the modern international financial system – America's trading partners have been left to cope with the impact of Washington's control and, in more recent years, the hegemony of the dollar as the dominant global reserve currency.

    The Chinese believe, for example, that the Americans persuaded Britain to stay out of the euro in order to prevent an earlier move away from the dollar. But Chinese banking sources say their discussions have gone too far to be blocked now. "The Russians will eventually bring in the rouble to the basket of currencies," a prominent Hong Kong broker told The Independent. "The Brits are stuck in the middle and will come into the euro. They have no choice because they won't be able to use the US dollar."

    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.

    The US discussed the trend briefly at the G20 summit in Pittsburgh; the Chinese Central Bank governor and other officials have been worrying aloud about the dollar for years. Their problem is that much of their national wealth is tied up in dollar assets.

    "These plans will change the face of international financial transactions," one Chinese banker said. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate."

    Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq

    http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html
     
    #33     Oct 6, 2009
  4. Ron Paul Warns of Violence from Pending Dollar Crisis

    Scary times ahead? Perhaps, if you take credence in what Rep. Ron Paul, R-Texas, says.

    Paul, who had a strong grassroots following during the 2008 presidential election, explained on Glenn Beck’s Sept. 30 radio program that perilous times lie ahead due to the Federal Reserve’s loose monetary policy. Host Glenn Beck asked how an Israeli strike against Iran might trigger problems with the American financial system.

    “What happens when Israel strikes Iran or Iran has the earth rays and we know that they now have a nuclear weapon, what happens to our financial system at that point?” Beck asked.

    The libertarian Paul maintained China would become the world’s financial heavyweight and they were already making preparations to be the world’s top dog.

    “I think the Chinese take over,” Paul said. “If there’s a real panic and oil shoots up to a couple of hundred bucks, the Chinese will dump their dollars. Chinese are maneuvering for this. The more we threaten Iran, the stronger the Chinese influence gets because they’re using the dollars that they have earned from us and saved, they have a trillion, and they are starting to buy up assets in Iran and build plants and get involved in their energy. So the whole thing is backfiring on us. We’re getting ready to put tougher sanctions on the Iranians and that will make things that much worse. It won’t help the dissidents in Iran. It’s going to cost us a lot of money, and there will be a bombing and that will be a big, big event. I think it will crash the dollar is what I think it would do

    And what does the country look like after the dollar crashes? Not good the Texas congressman said.

    “We think it was bad with the financial crisis,” Paul said. “When you have a dollar crisis, the whole thing quits functioning. The checks bounce and literally the federal government’s checks bounce if you have – if inflation goes up

    But the situation deteriorates even more Paul – with states leaving the union.

    “I think we’re going to have a de facto 10th Amendment, secession,” Paul said “People are just going to ignore the federal government because they won’t – and there’s, you know, a total loss of credibility.”

    Beck alluded to media charges and warnings from others that there would be violence and contended the right is being set up to take the fall for it.

    “Congressman Paul, the media and even [Rep.] Patrick Kennedy said this, we heard this from two people, Muammar Gaddafi and I believe the other one was Ahmadinejad that both spoke last week and they – we’re hearing it all the time that there’s going to be violence here in America, that people are targeting,” Beck said. “Basically everyone is going to blame this on the right, any kind of violence.”

    There would be violence, but not before a dollar crisis happens as some Democratic politicians and media personalities have warned, but afterward Paul said.

    “I think that there will be violence,” he explained. “I hope we don’t have to go through, you know, a very violent period of time, but that’s what happens too often when the government runs out of money and runs out of wealth, the people argue over, you know, a shrinking pie and, of course, the people who have to produce are sick and tired of producing.”

    http://www.prisonplanet.com/ron-pau...s-says-israel-strike-on-iran-the-trigger.html
     
    #34     Oct 6, 2009
  5. I can see World War III.

    What will you do if you have AK-47 rifle in your hands but you do not have money to buy food?. Understandably you will rob a bank.

    Similarly, USA has the most powerful army and weapons and now USA is bankrupt with $82 Trillions of debt on and off the books. Now if the US dollar is destroyed what will USA do?.
     
    #35     Oct 6, 2009
  6. wildfire, stop posting that Ron Paul article everywhere. One thread was enough. Don't make me delete you for spamming.

    Thank you.
     
    #36     Oct 6, 2009
  7. All this news and the MKts power UP. Strange times.
     
    #37     Oct 6, 2009
  8. I have written many times earlier that Barack Obama and his team have no idea about what is going on in the world.
     
    #38     Oct 6, 2009
  9. He is more like a front man, a puppet, bankers pulling the strings.
     
    #39     Oct 6, 2009

  10. interesting point being made here
     
    #40     Oct 6, 2009