Arabs, Oil, and the Dollar

ksammut

The below headline is now appearing on the Drudge Report. Has anyone read any details?

ARAB STATES LAUNCH SECRET MOVES WITH CHINA, RUSSIA, FRANCE TO STOP USING DOLLAR FOR OIL TRADING... DEVELOPING...

TheRegulator

Link is up now...

ksammut

<< <i>Link is up now... >>



Thanks!

MillerJW

Will that really work?? And will that make gold and silver go up that much??

ksammut

<< <i>Will that really work?? And will that make gold and silver go up that much?? >>



The deeper the US goes in debt, the more China and others will back away from the Dollar.

China wants gold and my guess is many other countries do too. Note the following from the story:

The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold.

cuzzx

And who is this Robert Fisk ?

and who does he follow?

ksammut

<< <i>And who is this Robert Fisk ?

and who does he follow? >>



Here is some information on Fisk:

Fisk

cohodk

I've seen this game played before. Read between the lines.

fivecents

Hasn't China been warning the USA to stop printing so much money?

Kd5ddo

If oil is taken off of the dollar, what would happen to the reserve currency of the world?

ksammut

<< <i>Hasn't China been warning the USA to stop printing so much money? >>



Yes, over and over but no amount of taxing will cover our debt so the powers to be print more and more.

With unemployment and underemployment, tax revenues will only decrease.

If someone here has a solution to paying off the debt we now have as well as all the future liabilities with SS, Medicare, and the rest, I would love to read your thoughts.

fivecents

Wouldn't it be a smart business move for China, Russia and France to stop using US dollar for trading?

I hope they don't do this, but it looks like collage business course 101 to me.

cohodk

<< <i>Wouldn't it be a smart business move for China, Russia and France to stop using US dollar for trading?

I hope they don't do this, but it looks like collage business course 101 to me. >>




What would they use instead? Are the govts of China, Russia and France--for that matter--stable enough to stop a run on their respective currencies? Are their govts powerful enough to protect the world? All of these countries are struggling just to keep peace within their borders. Good luck to them and their endeavors.

Kd5ddo

From what i remember, we told Saudi to help keep the oil on the dollar in return for protection from the US. Now it seems China is saying we can protect you just as well, there is no need for oil to be traded in dollars anymore...

This will be interesting to see the development of the story and if anything come of it...

cohodk

<< <i>From what i remember, we told Saudi to help keep the oil on the dollar in return for protection from the US. Now it seems China is saying we can protect you just as well, there is no need for oil to be traded in dollars anymore...

This will be interesting to see the development of the story and if anything come of it... >>




Do you really think the world wants communist China protecting anything?

Kd5ddo

Do i think the wolrd wants China protecting anything? No.

But if a country with over 3x the population of the US is going through an industrial boom and wants to buy what you export... Then wouldn't it be wise to have them on your side?

I am not saying I like the (possible) move, but from Saudi's perspective... I feel it isnt a bad move for them as a country. They get on the good side of China (who is booming with over 1 billion people), Russia (natural resource rich), and France (Well... dont know the benifit here other than a EU nation jumpin gon board) and they still maintain a 'body gaurd' for protection from invasion. They move their income base off of the falling (not to mention debt laiden) dollar to a mix bag of currencies to add stability.

I dont agree with them, but I understand...

Bear

China stops supporting the dollar, we put a stop to all

trade with China. Let the Trade War begin.

Cladiator

<< <i>China stops supporting the dollar, we put a stop to all

trade with China. Let the Trade War begin. >>

Let the shooting war begin as soon as one side realizes it's about to lose the trade war.

Bear

The US has always been a Pacific Power. If China wants to contest that

it would seem that some kind of limited conflict is inevitable. You can not

have two bull mooses in the area without a contest for who is dominant.

Cladiator

We all know what happened the last time two Pacific bulls went into the ring. If it were to happen again with China as one of the bulls it would prove to be exponentially more difficult. The end move could likely be the same as the last time, just multiplied many times over.

Kd5ddo

One thing that makes me think is the fact the we are the largest importer of chinese goods. China is the largest purchaser of our debt. If we get into a pissing contest with one another, who would be worse off?

China - stuck with our debt that is very unlikely to be repaid in full and with a massive surplus of unsold goods...

USA - No longer having China to purchase the majority of our debt (which will end eventually anyway)...

Would it be an economic cold war it a lead and steel war?

fc

according to quotes from people in these respective govts.. this is all one big fat rumor.

Justacommeman

<< <i>according to quotes from people in these respective govts.. this is all one big fat rumor. >>



I think there are some germs of truth to be sure. MJ