http://www.independent.co.uk/news/busine…
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.
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Us Dollar To Be ‘replaced As World’s Reserve And Trading Currency.’ Is This Good Or Bad?
Posted on August 27, 2010.
was that going off the gold standard and enabling Americans to own gold included going on the “black gold” or oil standard and arranging our “friends” and “allies” in the Middle East to trade oil in dollars instead of whatever else they were using. It looked like a really good idea at the time. Then the 1973 Arab-Israeli War happens, we favor Israel for obvious favor-the-attacked-over-the-attacker reasons and they stop shipping oil, in dollars. Gas prices haven’t been the same, since. But this has kept our kelptocratic, uh, bureaucratic government operating at a deficit for decades (ever wonder how one has a multi-trillion dollar deficit and continue to function?)
Thus, to your question: it’ll be horrible for the U.S. and great for everyone else. But I’m already poor, so I don’t expect much to change, personally.
How did Britain feel when the Pound Sterling was replaced by the US dollar?How did the US feel when IMF wanted to replace the US dollar with SDR? How did Germany, France and other in the Eurozone feel when their local currency was replaced by the Euro? The real answer is fear. But all of them have had a good hope for the better. That’s why we are here today.
service of the US Republican Party.
The results of having gross incompetence in charge for eight strait years will fall-out over the next few yeare and only then will people who read be able to assess just how much damage the Repugnants have done to our country.
North Korea and Iran will be soooo proud.
Uh, OK. That article’s nearly a year old, so look around, what’s changed?
ROTFL
1. Maybe?
If something is good for some, it is bad for others. On the other hand, it could be completely unimportant for just about everyone. So when you ask good or bad, are you asking significant vs. not, or is it good or bad for some unspecified party X?
2. People have been arguing for decades about the “exorbitant privilege” having the dollar as the the international currency gives the U.S.:http://en.wikipedia.org/wiki/Exorbitant_…http://delong.typepad.com/sdj/2005/06/go…http://www.bde.es/webbde/GAP/Secciones/S…
Yes, it exists, but is it an advantage or not? Certainly having the dollar be strong has advantages, but it also has disadvantages: such as making export growth much harder to achieve.
3. No one is going to replace the dollar with any single currency any time soon. The basket of currencies (which some countries are already using) will have a heavy weight on the dollar.
That means that even if country X starts using a basket of currencies or Singapore does start selling oil futures denominated in euros, http://www.thejakartaglobe.com/business/…
the U.S. dollar will still continue the premier reserve currency at least as long as the U.S. is the the single largest economy in the world.
China may have replaced Japan as number 2, but it will still be decades before either catches up to the U.S. If Europe really were to unite, they would be the leader; but what are the chances of that happening any time soon?
4. If the dollar were to be completely replaced, then it would be a shock to the U.S. economy, but just how bad would it be?http://krugman.blogs.nytimes.com/2009/01…