George Rebane
Obama can’t be blamed for starting the destruction of the dollar, but he will get a lot of credit for hastening its downfall. Major world powers have recently begun secret meetings to move oil (and other energy commodities) off the dollar bandwagon. Why? Because, as RR readers have been aware for some time, the US government has no choice but to inflate our fiat money out of existence. We are broke and owe our creditors debts and our citizens huge entitlements denominated in dollars. There is simply no other way to pay off the putative amounts - more than $120 trillion and counting - than to print or 'monetarily ease' the dollar into oblivion.
The Independent of Great Britain reports -
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 target date for the transition is reported to be 2018. Stand by for the vehement denials that will confirm the report.
Meanwhile, gold topped $1000 per ounce today (10/6). I wonder why? Inflation kicking in? Dollar down? Specs fleeing other commodities? Another country buying it up?
Posted by: DaveC | 06 October 2009 at 09:26 AM