Producer & Debt-Holder nations plan to dump dollar

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mart
Posts: 536
Joined: Tue Mar 22, 2005 2:06 pm

Producer & Debt-Holder nations plan to dump dollar

Post by mart »

Hyper-Inflation Alert! - Producer & Debt-Holder
nations plan to dump dollar.



Get ready for hyper-inflation and further collapsing
of the North American economy as major oil and
commodity producers and (other) U.S debt holder nations
get ready to dump the U.S dollar - the result of years and
years of the U.S simply printing paper dollars and living
on credit, - ie - consuming without producing - all the
while cutting real wages and jobs at home, while
transferring manufacting overseas - and continuing
to consume like a bunch of drunken sailors! The time
has come to pay the piper for years of excess and
greed and it ain't gonna be pretty!

mart
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1) (AFP) "Dollar drops on 'plans' to ditch
dollar-oil price"

2) (AFP) "Gold hits record high on 'plan'
to ditch dollar

-----------------------------------
1)
http://ca.news.yahoo.com/s/afp/091006/b ... europe_997

Dollar drops on 'plans' to ditch dollar-oil price

Yahoo News via AFP,
Tue Oct 6, 6:54 AM

LONDON (AFP) -
The dollar fell on
Tuesday, hit by a media report that Gulf
states are planning to stop using the US
currency for oil transactions and on
prospects of low US interest rates
long-term, traders said.

The report was denied by Kuwait, but
the European single currency rose to
1.4729 dollars from 1.4648 dollars
late in New York on Monday.

Against the Japanese currency, the dollar
slid to 89.06 yen from 89.51 yen on
Monday.

Britain's Independent newspaper reported
on its website on Tuesday that Gulf
countries have held secret meetings with
officials outside the region to discuss
dropping the dollar for oil trade.

The countries would instead use a basket
of currencies, including the yen, the paper
said, citing Gulf Arab and Chinese
banking sources in Hong Kong.

The report increased recent negative
sentiment toward the dollar, dealers said.
"The timing made it easier to sell the
dollar on the news," Yuzo Sakai, manager
at brokerage Tokyo Forex & Ueda Harlow,
told Dow Jones Newswires.

"There has been similar talk before but
this comes as concern over the dollar's
place in the world is increasing," Sakai
said.

The dollar also dropped after a top US
central banker said that interest rates in
the world's biggest economy were likely
to remain very low for some time.

"The federal funds rate target is likely to
remain exceptionally low for an extended
period" amid weak inflation and a modest
economic rebound, Federal Reserve Bank
of New York president William Dudley
said.

"The trend is for a weak dollar as the
market is convinced that US rates won't
rise any time soon," said Yuji Saito, head
of foreign exchange at Societe Generale
in Tokyo.

The Australian dollar jumped after the
Reserve Bank of Australia announced
it was raising its official interest rates
to 3.25 percent, from a 49-year-low
of 3.0 percent.

Australia is the first advanced economy
to raise interest rates since the global
financial crisis. Investors generally
prefer the currencies of countries
offering higher yields.

In London on Tuesday, the euro was
changing hands at 1.4729 dollars
against 1.4648 dollars late on Monday,
at 131.14 yen (131.12), 0.9225
pounds (0.9193) and 1.5114 Swiss
francs (1.5119).

The dollar stood at 89.06 yen (89.51)
and 1.0264 Swiss francs (1.0320).
The pound was at 1.5964 dollars
(1.5934).

On the London Bullion Market, the
price of gold jumped to 1,019.65
dollars an ounce from 1,005.50
dollars an ounce late on Tuesday.
------------------------------
2)
http://ca.news.yahoo.com/s/afp/091006/b ... tals_price

Gold hits record high on 'plan' to
ditch dollar

Yahoo Newes via AFP,
Tuesday, Oct. 6, 2009
2 hours, 13 minutes ago

LONDON (AFP) -
The price of gold
struck an all-time high at 1,038.65 dollars
an ounce here on Tuesday as the dollar fell
on a reported plan by Gulf states to stop
using the greenback for oil trading.

Gold reached the level in late afternoon
trade on the London Bullion Market,
beating the previous record high of
1,032.70 dollars an ounce struck in
March, 2008.

"Gold prices hit an all-time high as
the dollar weakens," said Barclays
Capital precious metals analyst Suki
Cooper.

"The dollar weakness appears to be related
to ... (reported) secret talks about oil being
priced in a basket of currencies including
gold rather than the dollar, which has
added to concerns about the future role
of the dollar in international financial
markets."

The dollar's future as the world's top
currency was thrown into doubt on
Tuesday as a report said Arab states had
launched secret moves with China and
Russia to stop using the greenback for
oil trading.

Arab states have launched steps with
China, Russia, Japan and France to stop
using the dollar for oil trades, British
daily The Independent reported on
Tuesday, but the report was denied by
Kuwait and Qatar and reportedly by
other nations.

The United Nations meanwhile on
Tuesday called for a new global reserve
currency to end dollar supremacy, which
has allowed the United States the
"privilege" of building a huge trade
deficit.

The Independent's Middle East
correspondent Robert Fisk wrote in his
paper: "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."

They would instead switch "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 (GCC),
including Saudi Arabia, Abu Dhabi,
Kuwait and Qatar," added Fisk.

Gold, viewed as a safe-haven investment,
has won back favour in recent months as
the global economy struggles out of its
worst slump in decades.

The run-up in gold has been largely driven
by weakness in the dollar, which makes
dollar-priced commodities cheaper for
holders of stronger currencies, boosting
demand.

Gold also wins support from fears about
higher inflation because the metal is widely
regarded by investors as a safe store of
value.

Precious metals consultancy GFMS last
month warned that the current upward
trend in gold may not be sustainable
should global stimulus packages fail to
boost flagging demand in the battered
world economy and inflation fall as a
result.

The Group of 20 leaders of emerging
and developed nations recently agreed at
a summit in Pittsburgh not to roll back
massive stimulus measures that helped
contain a severe global recession.

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