Dollar's demise?

[Rattanaburi]

Just another story on the dollar.

The demise of the dollar - Business News, Business - The Independent

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

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.

Will we be back to 25 baht to the dollar soon or worse? If you say it enough eventually people (around the world) are going to believe it.

[britmaveric]

More like 40 bht per dollar.

[barbaro]

Just another story on the dollar.

The demise of the dollar - Business News, Business - The Independent

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

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.

Will we be back to 25 baht to the dollar soon or worse? If you say it enough eventually people (around the world) are going to believe it.

Good catch Ratta,

This story could be very big.

It does make sense, as these countries have been very adroitly commenting on their concerns for the dollar, with all of the money supply increases via printing and computer creation.

I notice gold is up to $1,015.

A basket of currencies does make sense.

[Butterfly]

apparently the story is denied, rumors for speculators, who knows

it's hard to get rid of the USD when you need to get paid with it for your natural resources

[blackgang]

unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

What happened to the Petro Dollar that they used to use, When we were on the finishing stages of the Oil loading terminal out of Basra and they were loading tankers they always got cash before loading and loaded the amount they were paid for and it was in Petro Dollars or US dollars only.
Or was petro dollars just a form of credit if you had some investments?

[lom]

Or was petro dollars just a form of credit if you had some investments?

A petro dollar is a US dollar earned by a country who is exporting oil.
It is not a currency in itself, it is only a word for describing how the dollar was earned.

[ItsRobsLife]

Or what it was printed for.

[Panda]

BBC NEWS | Business | Gold price rises to all-time high

"The dollar fell after a newspaper report - later denied - said that Gulf nations wished to replace the greenback as the main oil currency."

Saudi Arabia as the head of OPEC made it clear at the last OPEC meeting that a move away from the $US was not up for discussion.
I am sure the Saudi Royals have political, military and economic reasons for not wanting to dump the $petro. The Saudi Riyal is in fact simply a defacto $US.
Saudi Riyals to 1 USD (invert,data)120 dayslatest (Oct 6)
3.75lowest (Apr 17)
3.75highest (Apr 17)
3.75


The $US has slipped against most currencies in the past 24 hours and gold has bounced as high as $US 1,043.

There are up and down movements on a daily basis, but the general trend over the past 7 years has been against the $US in relation to both gold and most other major currencies.

Gold Price - LIVE streaming gold price chart includes breaking news

US Dollar Index

[Butterfly]

A low USD is going to be a problem for everyone in the long term

eventually raising interest rates would be the only option, and god saves us all when this happens.

but letting the USD going down even further would create another supply shock with commodities and oil speculators demanding higher prices for the goods

either way it doesn't look much promising for everyone. We might have a recovery but things might be flat and miserable for a while.

[ItsRobsLife]

I disagree, look at the mess Dollar dependancy has got us into.

[Butterfly]

^ not the cause of the problem IMO. Would have happened no matter the currency.

you can't have growth without debt, and you can't have debt without managing risks. The situation we are facing now is just the end game of multiple abuses, not the conduit itself.

Banks need to nationalized and under supervisory rules for not making any profit above a certain average as they create their own risks by doing so. They need to refocus on serving their clients first, not the board of directors or the shareholders.

[larvidchr]

^ Bollocks IMO. BF, firstly the US Dollar have had a unique position as the worlds trade currency, speculating that the same shambles would have happened no matter what currency is just hypothetical, but we do know however that the freedoms for the finance people in the US have been unprecedented, and largely completely unregulated because of the US capitalist system.

Many Country's have managed a reasonable rate of growth without selling their soul to the high risk debt devil in the humongous scale of the US, running a nation is not the same as speculating with high risk guessing on the stock-market, running nations require much higher degree of certainty of the outcome of Government policy's.

Secondly we know that shifting US Governments have misused the position of the Dollar, the growth in the US far exceeded the natural level for the Country, and had no cover in increased production and real wealth, it was largely based on bonds that the US cant honour, if the bond holders want to cash in the bonds the US would be effectively bankrupt, this is the responsibility of the US Government's and as such political financial abuse rather than Wall Street abuse.

Thirdly the subprime's came into being after a Jimmy Carter administration decision, forcing financial institutions to give loans to people who should never have had a loan, thus opening up for the disastrous speculation in those risk's, ending up creating a global economic crisis.

Country's then holding large reserves in the US Dollar was, largely driven by self-preservation, forced to support the US in this crisis, which is about as undeserved as the horrendous bonuses that Executives having run their company's to bankruptcy have been given.

This whole pile of shit rests squarely on the shoulders of the US, and will be the reason why in a foreseeable future the Dollar's role as the world trade currency will be at an end. No Country's Governments with just 5 cents worth of brain put together, will in the future let their Country's be so dependant on a single currency they have no control over.

The big US spending party with borrowed money is over and reality is knocking at the door with a sledgehammer.

[ItsRobsLife]

Another point I would add is the extent to which the US has resorted to conflict to maintain Dollar hegemony.

[britmaveric]

^I would be worrying more about European banks than what is going on with the $. Things are looking quite dire in that direction.

[beazalbob69]

^ Bollocks IMO. BF, firstly the US Dollar have had a unique position as the worlds trade currency, speculating that the same shambles would have happened no matter what currency is just hypothetical, but we do know however that the freedoms for the finance people in the US have been unprecedented, and largely completely unregulated because of the US capitalist system.

Many Country's have managed a reasonable rate of growth without selling their soul to the high risk debt devil in the humongous scale of the US, running a nation is not the same as speculating with high risk guessing on the stock-market, running nations require much higher degree of certainty of the outcome of Government policy's.

Secondly we know that shifting US Governments have misused the position of the Dollar, the growth in the US far exceeded the natural level for the Country, and had no cover in increased production and real wealth, it was largely based on bonds that the US cant honour, if the bond holders want to cash in the bonds the US would be effectively bankrupt, this is the responsibility of the US Government's and as such political financial abuse rather than Wall Street abuse.

Thirdly the subprime's came into being after a Jimmy Carter administration decision, forcing financial institutions to give loans to people who should never have had a loan, thus opening up for the disastrous speculation in those risk's, ending up creating a global economic crisis.

Country's then holding large reserves in the US Dollar was, largely driven by self-preservation, forced to support the US in this crisis, which is about as undeserved as the horrendous bonuses that Executives having run their company's to bankruptcy have been given.

This whole pile of shit rests squarely on the shoulders of the US, and will be the reason why in a foreseeable future the Dollar's role as the world trade currency will be at an end. No Country's Governments with just 5 cents worth of brain put together, will in the future let their Country's be so dependant on a single currency they have no control over.

The big US spending party with borrowed money is over and reality is knocking at the door with a sledgehammer.

That was a great post!
And people get mad at me when I say that I hate my country and cant wait to get out. It's nice to see a view from the outside.

I also see an end to the US$ being the #1 currency in the world. We are not the #1 country for anything anymore except corruption!

[Prancing Beast]

^ Bollocks IMO. BF, firstly the US Dollar have had a unique position as the worlds trade currency, speculating that the same shambles would have happened no matter what currency is just hypothetical, but we do know however that the freedoms for the finance people in the US have been unprecedented, and largely completely unregulated because of the US capitalist system.

Many Country's have managed a reasonable rate of growth without selling their soul to the high risk debt devil in the humongous scale of the US, running a nation is not the same as speculating with high risk guessing on the stock-market, running nations require much higher degree of certainty of the outcome of Government policy's.

Secondly we know that shifting US Governments have misused the position of the Dollar, the growth in the US far exceeded the natural level for the Country, and had no cover in increased production and real wealth, it was largely based on bonds that the US cant honour, if the bond holders want to cash in the bonds the US would be effectively bankrupt, this is the responsibility of the US Government's and as such political financial abuse rather than Wall Street abuse.

Thirdly the subprime's came into being after a Jimmy Carter administration decision, forcing financial institutions to give loans to people who should never have had a loan, thus opening up for the disastrous speculation in those risk's, ending up creating a global economic crisis.

Country's then holding large reserves in the US Dollar was, largely driven by self-preservation, forced to support the US in this crisis, which is about as undeserved as the horrendous bonuses that Executives having run their company's to bankruptcy have been given.

This whole pile of shit rests squarely on the shoulders of the US, and will be the reason why in a foreseeable future the Dollar's role as the world trade currency will be at an end. No Country's Governments with just 5 cents worth of brain put together, will in the future let their Country's be so dependant on a single currency they have no control over.

The big US spending party with borrowed money is over and reality is knocking at the door with a sledgehammer.

That was a great post!
And people get mad at me when I say that I hate my country and cant wait to get out. It's nice to see a view from the outside.

I also see an end to the US$ being the #1 currency in the world. We are not the #1 country for anything anymore except corruption!

And sin!

[beazalbob69]

only if you believe in sin which strangly most americans do.

[Prancing Beast]

only if you believe in sin which strangly most americans do.

Well, The Bible is quite clear on the matter.

[beazalbob69]

only if you believe in sin which strangly most americans do.

Well, The Bible is quite clear on the matter.

only if you believe the bible which is a book written by Men for Men not by GOD whatever GOD is.

[Muadib]

I believe we're experiencing one of Andrew's other 17 nics...

[FlyFree]

Can't believe that report IMHO. No way is China gonna commit suicide by doing anything to harm the dollar.

[Butterfly]

Many Country's have managed a reasonable rate of growth without selling their soul to the high risk debt devil in the humongous scale of the US, running a nation is not the same as speculating with high risk guessing on the stock-market, running nations require much higher degree of certainty of the outcome of Government policy's.

But that growth is directly fueled by the US who is managing the risks for them. So those countries sold their souls one way or the other. The Real sector operations is being fueled by complex financial instruments. Without those instruments, the real sector is fucked or doesn't happen or doesn't grow. That's why we have such a crisis now among other things. It's not about silly speculation that is disconnected from the real world, but financial instruments that were used in the real sector that have been affected with the whole crisis. See Lehman disaster in the credit and commercial paper market, that's ground zero of the nuclear strike.

Thirdly the subprime's came into being after a Jimmy Carter administration decision, forcing financial institutions to give loans to people who should never have had a loan, thus opening up for the disastrous speculation in those risk's, ending up creating a global economic crisis.

Complete non-sense. That was a minority. And the securitization of sub-prime didn't start before the 90s. The sub-prime problems seem to be out of your grasp of concept. The securitization and the deregulation of banks (see Reagan, not Carter) with the use of creative loan contracts are the source of the sub-prime mess.

This whole pile of shit rests squarely on the shoulders of the US, and will be the reason why in a foreseeable future the Dollar's role as the world trade currency will be at an end. No Country's Governments with just 5 cents worth of brain put together, will in the future let their Country's be so dependant on a single currency they have no control over.

The big US spending party with borrowed money is over and reality is knocking at the door with a sledgehammer.

Yes technically it would make sense, but without the US currency, not much business would have gone or growth be achieved. So the choice was no trade or trade with what you have. In some sense the EURO is a replacement for that philosophy but it will bring the same evils eventually. At the end of the day, in real terms, we don't have that much of a choice.

[barbaro]

Can't believe that report IMHO. No way is China gonna commit suicide by doing anything to harm the dollar.

Some (such as Jim Rogers) think it's an intentionally planted false rumor.

Agree that China (and other nations) won't harm the dollar.

Faith in the Greenback has been diminishing, and the USD will slow and steadily decline (if I may parrot what I read on the board here and in the econ analyst articles).

More "bad news" to keep the Americans concerned in the current difficult times.

[Panda]

Robert Fisk, the author of the original article that caused such a financial stir a few days ago speaks on camera.

[mooncake]

Do we have any thread here on....gold/silver trading or equity trading?

If not, would anyone be interested talking about it?

Just wondering