Gulf Arab States Should Scrap Dollar Currency Pegs

[Atilla]

Gulf Arab States Should Scrap Dollar Currency Pegs, Faber Says


Saudi Arabia, the United Arab Emirates and three other Gulf states should link their currencies ``to a basket, and not the weakest currency in the world,'' Faber told a Middle East investment conference in Abu Dhabi today. ``They should have de- pegged their currencies a long time ago,'' he said.

Faber, who advised investors to buy gold at the start of its six-year rally, this month said Federal Reserve moves to cut interest rates to avert a U.S. economic slowdown will ``destroy the U.S. dollar.''


Well I'm one of those people who believe the US went to war with Iraq to teach it a lesson for moving away from the dollar as well grab it's oil. In return the US has UTTERLY FAILED to achieve the very two primary objectives it desired to achieve. Losing the dollar standard and oil prices above $100+ as opposed to $40???

Reminds me of Milosovich who had visions of a Greater Serbia - Looking at Serbia now it's very much a small and disgraced country????

Unlike Serbia which was a storm in a local tea cup, Iraq and loss of the dollar standard is pretty significant globally.

I do believe, the US is fighting an economic battle with China but is severely losing the plot. They may expect other central banks and countries to support the dollar to maintain value of their reserves but it's not happening. Lennin said give capitalists enough rope and they'll hang them selves. I thought this was a little harsh but I can see what they mean. The joke goes, his comrade replies "But sir, there isn't enough rope in the world to hang them all?". Lenin replies, "Yes maybe so, but their greed will help them manufacture it so they have enough!" Maybe not so twisted but factual. I like to qualify I'm not a communist. More of a free marketeer with a social conscience if I may say.

Is the end nigh for the dollar? Where is that friend of mine Jacinto who laughed at me when I first said it may be - sometime in 2006...

 

[Trader333]

Hmm, Do you think that there is any correlation with the fact that the last time an oil producing nation made attempts to stop trading oil in USD it was invaded less than 2 weeks later (Iraq)

Any views on how the US is likely to react to oil producing nations trying to stop trading in USD ?


Paul

 

[Atilla]

Hmm, Do you think that there is any correlation with the fact that the last time an oil producing nation made attempts to stop trading oil in USD it was invaded less than 2 weeks later (Iraq)

Any views on how the US is likely to react to oil producing nations trying to stop trading in USD ?


Paul

Absolutely and a positive one at that imo. That may well have turned negative at the mo but with madmen at the helm one can never be too sure. Look at the US resignation of Fallon? Obviously politicians in the Bush camp still think there is milage in their ventures. Army men don't but Pentagon and Politicians (since Rumsfeld) have been at war with each other for some time. A little like Kennedy if Obama comes to head cutting Pentagon expenditure perhaps we can see him being assissinated by some white doped up and twisted KluKlux basket case. Hope not.

Regarding your second question, I think the US will subsequently leave those states to their own wills and maybe then we will see some real democracy in those countries instead of puppet regimes. Wars need money. Without money you can't fight wars... US global military expansion will stall and new balance of power will be mapped out from the super powers with the likes of US, China and Russia.

 

[bizclub8]

Well, this is most certainly an act of war. But if there was ever a time when it may not lead to another war this is it. Since the US is already at war. The gulf states would be wise to take advantage of this opportunity and even if they do peg to a basket of currencies the USD will most surely be included in that basket. The US government may also be inclined to allow this to happen and allow the USD to fall where it may, because high oil prices hurts the US too and every one knows the US is gonna take a hit anyways. So its better to take the hit you see coming than to get blindsided.

 

[grantx]

So why is the number one commodity reaching record levels in price and demand but the dollar is still going south? If it wasn't for the demand in oil, the dollar would be even lower. I suppose that's some consolation to oil importing countries.

Switch to Euros? Will the US invade the Arab states, Russia (and its satellites), Venezuela, India and China?

Grant.

 

[bizclub8]

So why is the number one commodity reaching record levels in price and demand but the dollar is still going south? If it wasn't for the demand in oil, the dollar would be even lower. I suppose that's some consolation to oil importing countries.

Switch to Euros? Will the US invade the Arab states, Russia (and its satellites), Venezuela, India and China?

Grant.

I said switch to a basket of currencies. which makes sense for the world economy including the USD.

 

[grantx]

Bizclub,

My post wasn't directed to you - it was the previous two conspiracy theorists.

Good Trading,

Grant.

 

[Atilla]

So why is the number one commodity reaching record levels in price and demand but the dollar is still going south? If it wasn't for the demand in oil, the dollar would be even lower. I suppose that's some consolation to oil importing countries.

Switch to Euros? Will the US invade the Arab states, Russia (and its satellites), Venezuela, India and China?

Grant.

By the number one commodity do you mean Gold or Oil? In answer to your questions...

If gold, pure speculation the dollar is up the creek without a paddle.

If oil, because supply is limited with China and India kicking into overdrive.

Price of oil is also going up because everybody knows the dollar is worth jack. Arab states need more dollars to compensate. Do you seriously think this price is purely Supply and Demand for oil? Arabs know a thing or two about finance too.

US can't even win the battle in Iraq do you really think it will try any other decent country?

You mention Russia, China and India as potential invasion targets. Funny how only the smallest country out of your selection - Venezuela comes remotely close to being attacked by Columbia (US supported Junta).

These are facts Grant.

1. US attacked Iraq because
- It didn't have any chemical weapons of mass destruction
- It refused to accept dollars to sell it's oil (made a lot of money selling it Euros)
- It had no connection to Al-Qaida or train them like the CIA did

2. Iraq did not only have no WMD, but that it would be a tremendous achievement if it was remotely capable of launching a chemical attack within 45 days. (UK intelligence report stated 45 minutes ).

3. It is a fact with limited troops in Iraq the US could only guard the ministry of oil as much as they tried to bring law and order to Iraq.

4. Bush believes the war is a moral one (Bush is a Christian Jihadi )

I'm dissapointed you dismiss these to be a conspiracy. But no problem. Facts will remain facts. UK government will still get into bed with the US cronies and then keep quiet about it all as Mr Brown has done recently. I'm sure fun time was had by both...:cheesy:

 

[grantx]

Atilla,

My quote:

“Switch to Euros? Will the US invade the Arab states, Russia (and its satellites), Venezuela, India and China?”

The idea the US would invade anyone who abandoned the dollar in favour of the Euro (or any currency) is so ludicrous, this was essentially rhetorical and therefore not an open question for debate. This is the only aspect which I refer to as “conspiracy”.

This line if often cited by yourself, Paul and many others. Now, put me out of my ignorance and tell me where I can see the evidence, or learn the origin.

Re your reference to Venezuela, looks like your grasping at straws here. The US doesn't like Chavez because he's left-wing - anathema to the Christian right - and potentially a destabilising element in the US-friendly South AMerica. The oil pretext is incidental at best, nonesense at worst.

Grant.

 

[Trader333]

This line if often cited by yourself, Paul and many others

"Often", I think I may have asked a question once and I didn't do anything other than ask which was based on a curiosity from what others had said.


Paul

 

[grantx]

Paul,

In your post above you refer to "the fact".

Grant.

 

[Trader333]

It was fact that Iraq stated it wished to switch away from trading Oil in USD and it was fact that two weeks later they got invaded. I asked for others view on if they thought there was correlation between the two.


Paul

 

[Atilla]

Atilla,

My quote:

“Switch to Euros? Will the US invade the Arab states, Russia (and its satellites), Venezuela, India and China?”

The idea the US would invade anyone who abandoned the dollar in favour of the Euro (or any currency) is so ludicrous, this was essentially rhetorical and therefore not an open question for debate. This is the only aspect which I refer to as “conspiracy”.

This line if often cited by yourself, Paul and many others. Now, put me out of my ignorance and tell me where I can see the evidence, or learn the origin.

Re your reference to Venezuela, looks like your grasping at straws here. The US doesn't like Chavez because he's left-wing - anathema to the Christian right - and potentially a destabilising element in the US-friendly South AMerica. The oil pretext is incidental at best, nonesense at worst.

Grant.

Let's reverse the question then...

1. It identified as Al-Qaida and Osama Bin Laden as culprit
2. It went to get the organisation in Afghanistan.
3. It had Osama cornered and instead of sending in specialist SEALs and what ever they trumpet it sent in couple of war lords on horse back to get him.
4. It then decided to take all it's resources and invade Iraq.

Why did the US invade Iraq after 9/11?

1. It didn't have any chemical weapons of mass destruction (other than the ones the US gave it to kill Iranians with inclusive of their satellite intelligence on Iranian mass troop movements during the Iran/Iraq war )
2. It wasn't building nuclear weapons (despite some consipiracy theories that said it was)
3. It had no connection to Al-Qaida or train them like the CIA did
4. It wanted to bring democracy and freedom to Iraq because morally it is the right thing to do. Cheering God, Bush says war with Iraq 'will forever be' the right decision How embarrasing is that.
5. It refused to accept dollars to sell it's oil (made a lot of money selling it Euros)
6. It wanted Iraq oil reserve all too it self

IMHO 5 and 6 are the only real substantial facts not conspiracies.

Everything else the White House tells you is the damn pack of lies and conspiracy theories.

As for Chevez the man is a socialist and a patriot more interested in his fellow men than filling his own pocket with monies. In recent times he has got ahead of him self and left some elements of democracy behind but at least he held an election and referendum on his plans. He also has the vote of the majority.

US doesn't like him because he is left-wing???? And what concern is that to the US. It has been torturing and raping Latin America for decades via all it's corrupt Junta backed regimes. This is the real old nonsense.

Why does Columbia is suddenly has a desire to attack Venezuela?

As for the ME countries they would abondon the dollar like yesterday if all those Kings and puppet rulers weren't so afraid of their own people calling for freedoms and democracies - ultimately over throwing them.

This is so perverse and I'm really dissappointed that intelligent people can't see through the simple lies and deceit of US propoganda but choose to accept it.

As for the primary article that started this thread off, there are some very big hitters with loadsamoney debating this very question.

Typically of a bully in a school yard they'll pick on the weakest kid. So don't expect the US to take on the big boys. Otherwise it will get shown up for what it is. :idea:

 

[Atilla]

This line if often cited by yourself, Paul and many others. Now, put me out of my ignorance and tell me where I can see the evidence, or learn the origin.


Grant.

Hi Grant,

Here are some links for you to look and read about the reasons... I hope you are not expecting the white house to validate all these. Only you can make that judgement call.

Best article and most comprehensive article
"The Real Reasons for the Upcoming War with
Iraq: A Macroeconomic and Geostrategic Analysis of the
Unspoken Truth"

Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse

Oil, Currency and the War on Iraq

America's War Against Europe


MORE REFERENCES
1. Anon., ‘Trade Deficit Surges to a Record High’, Reuters, (January 17, 2003),
http://www.centredaily.com/mld/centredaily/news/4970891.htm.

2. Recknagel, Charles, ‘Iraq: Baghdad Moves to Euro’, Radio Free Europe (November 1,
2000), http://www.rferl.org/nca/features/2000/11/01112000160846.asp.

3. Anon., ‘A Look At The World's Economy’, CBS Worldwide Inc., (December 22, 2000),
A Look At The World's Economy, Some Predict Positive Worldwide Growth - CBS News.

4. Anon., ‘Iran may switch to euro for crude sale payme nts’, Alexander Oil and Gas,
(September 5, 2002), Alexander's Gas & Oil Connections - Iran may switch to euro for crude sale payments.

5. Hazel Henderson, ‘Globocop v. Venezuela’s Chavez: Oil, Globalization and Competing
Visions of Development’, InterPress Service, (April 2002),
http://www.hazelhenderson.com/Globocop v. Chavez.htm.

6. Javad Yarjani, ‘The Choice of Currency for the Denomination of the Oil Bill’, (April 14,
2002), http://www.opec.org/NewsInfo/Speeches/sp2002/spAraqueSpainApr14.htm.

7. The Association for the Study of Peak Oil, Newsletter 26, (February 2003),
Peak Oil.


FURTHER READING ANOTHER LINK TO BEST COMPREHENSIVE ARTICLE
· William Clark, ‘The Real Reasons for the Upcoming War With Iraq: A Macroeconomic
and Geostrategic Analysis of the Unspoken Truth’, (January 2003),
Revisited - The Real Reasons for the Upcoming War in Iraq: A Macroeconomic and Geostrategic Analysis of the Unspoken Truth, by William Clark, updated: Jan 2004.



Bed time reading eh?

 

[grantx]

Atilla,

Thanks for the links. I look forward to reading them.

Grant.