Oct 06, 2009

http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

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. . . .

"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.

The denials have already been thundering in today's press. The problem is, everyone expects government officials to lie about secret meetings. Why do you suppose they call them "secret"?? That is why the dollar has tanked today, and the price of gold has shot up into record territory.

http://www.dailyfinance.com/2009/10/06/oil-states-deny-plans-to-dump-the-dollar/