Monday, October 5, 2009

UK Independent: The demise of the dollar

Following up on my previous post, here's the article by Robert Fisk at U.K. Independent:

The demise of the dollar (Robert Fisk, 10/6/09 Independent)

"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."

Read the rest of the article by clicking on the link above.

That sudden jump in price of gold, silver, and natural gas in early September was indeed telling us something. Maybe.


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