Monday, October 05, 2009

Greenbacked-up as hell and not taking it anymore

Roll out red carpets
Here come the China boys
-- The Payola$ (1979)

A report by Robert Fisk (the only Western journalist to ever interview Osama bin Laden) in today's Independent augurs ill for the continuance of the United States' dominance of world finance - perhaps a body blow to a crumbling empire:
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.
"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.
Well that tidbit of truth is a wee bit disturbing.

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