Sherdog Mixed Martial Arts Forums

Go Back   Sherdog Mixed Martial Arts Forums > General Discussion > The War Room

The War Room Gun-toting neocon? Tree-hugging lib? Duke it out in the War Room.

Reply
 
Thread Tools
Old 10-05-2009, 07:49 PM   #1
foxnewsfan

Black Belt
 
foxnewsfan's Avatar
 
Join Date: Sep 2007
Posts: 5,319
vCash: 500
Arab states, China, Russia, Japan and France to stop using US Currency.

The demise of the dollar

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

By Robert Fisk

Tuesday, 6 October 2009

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.

The Americans, who are aware the meetings have taken place although they have not discovered the details are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."

This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil yet again turning the region's conflicts into a battle for great power supremacy. China uses more oil incrementally than the US because its growth is less energy efficient. The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold. An indication of the huge amounts involved can be gained from the wealth of Abu Dhabi, Saudi Arabia, Kuwait and Qatar who together hold an estimated $2.1 trillion in dollar reserves.

The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China's extraordinary new financial power along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system which has prompted the latest discussions involving the Gulf states.

Brazil has shown interest in collaborating in non-dollar oil payments, along with India. Indeed, China appears to be the most enthusiastic of all the financial powers involved, not least because of its enormous trade with the Middle East.

China imports 60 per cent of its oil, much of it from the Middle East and Russia. The Chinese have oil production concessions in Iraq blocked by the US until this year and since 2008 have held an $8bn agreement with Iran to develop refining capacity and gas resources. China has oil deals in Sudan (where it has substituted for US interests) and has been negotiating for oil concessions with Libya, where all such contracts are joint ventures.

Furthermore, Chinese exports to the region now account for no fewer than 10 per cent of the imports of every country in the Middle East, including a huge range of products from cars to weapon systems, food, clothes, even dolls. In a clear sign of China's growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China's reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.

Ever since the Bretton Woods agreements the accords after the Second World War which bequeathed the architecture for the modern international financial system America's trading partners have been left to cope with the impact of Washington's control and, in more recent years, the hegemony of the dollar as the dominant global reserve currency.

The Chinese believe, for example, that the Americans persuaded Britain to stay out of the euro in order to prevent an earlier move away from the dollar. But Chinese banking sources say their discussions have gone too far to be blocked now. "The Russians will eventually bring in the rouble to the basket of currencies," a prominent Hong Kong broker told The Independent. "The Brits are stuck in the middle and will come into the euro. They have no choice because they won't be able to use the US dollar."

Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018.

The US discussed the trend briefly at the G20 summit in Pittsburgh; the Chinese Central Bank governor and other officials have been worrying aloud about the dollar for years. Their problem is that much of their national wealth is tied up in dollar assets.

"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.

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

__________________
"I won't be wronged, I won't be insulted, and I won't be laid a hand on. I don't do these things to other people and I expect the same from them."
foxnewsfan is offline   Reply With Quote
Old 10-05-2009, 07:57 PM   #2
punch-drunk
Banned
 
Join Date: Sep 2007
Location: hiding from the wife & kids
Posts: 1,619
vCash: 500
Get use to it. I think the EURO is reshaping the worlds financial landscape.
Do you think we will ever have a North American currency? I realize Mexico would have to get its shit together first, but you never know.

punch-drunk is offline   Reply With Quote
Old 10-05-2009, 08:05 PM   #3
foxnewsfan

Black Belt
 
foxnewsfan's Avatar
 
Join Date: Sep 2007
Posts: 5,319
vCash: 500
Quote:
Originally Posted by punch-drunk View Post
Get use to it. I think the EURO is reshaping the worlds financial landscape.
Do you think we will ever have a North American currency? I realize Mexico would have to get its shit together first, but you never know.
Nothing would be changing if we didn't borrow trillions every year with absolutely no way to pay it back.

__________________
"I won't be wronged, I won't be insulted, and I won't be laid a hand on. I don't do these things to other people and I expect the same from them."
foxnewsfan is offline   Reply With Quote
Old 10-05-2009, 08:14 PM   #4
MusterX

Silver Belt
 
MusterX's Avatar
 
Join Date: Nov 2006
Posts: 12,168
vCash: 500
I see the revived Roman Empire is moving ahead as scheduled.

MusterX is offline   Reply With Quote
Old 10-05-2009, 08:57 PM   #5
Mmaoverboxing

Purple Belt
 
Mmaoverboxing's Avatar
 
Join Date: Sep 2008
Location: London/Sarnia
Posts: 2,129
vCash: 500
All empires rise and fall

__________________
"You eat what you kill and that is all."

Carwin
Mmaoverboxing is offline   Reply With Quote
Old 10-05-2009, 09:05 PM   #6
MicroBrew

Silver Belt
 
MicroBrew's Avatar
 
Join Date: Apr 2007
Posts: 13,853
vCash: 500
As Pat Buchanan has mentioned at times, we should stop bankrolling the protection of many countries, from Japan to the Mid East. Let see how big a hit their government purse takes when they don't have uncle Sam protecting them.

We should start by scaling back from S.Korea and Japan. Both of them are industrialized powers who can protect themselves. We could save a lot of money .

MicroBrew is offline   Reply With Quote
Old 10-05-2009, 09:11 PM   #7
WorldofWarcraft
Holy Paladin
 
WorldofWarcraft's Avatar
 
Join Date: May 2008
Location: ( ͡ ͜ʖ ͡)
Posts: 13,285
vCash: 500
Stock up on guns, ammo, tools and learn how to grow your own food.

__________________
Why if the government and the people are actually one thing, why if the state is the people's state, if we are the democracy we claim to be, should the government want that monopoly?
WorldofWarcraft is offline   Reply With Quote
Old 10-05-2009, 09:13 PM   #8
MoonBat

Purple Belt
 
MoonBat's Avatar
 
Join Date: Mar 2007
Location: Kentucky State Mental Hospital @ Bowling Green
Posts: 1,764
vCash: 500
It's a blessing. There will be pain in the short term, but in the long run the entire world will be much better off.

__________________
How to Abolish the FED and Repair our Economy:

http://www.youtube.com/watch?v=nNumEm2NzQA
MoonBat is offline   Reply With Quote
Old 10-05-2009, 09:24 PM   #9
punch-drunk
Banned
 
Join Date: Sep 2007
Location: hiding from the wife & kids
Posts: 1,619
vCash: 500
Quote:
Originally Posted by MicroBrew View Post
As Pat Buchanan has mentioned at times, we should stop bankrolling the protection of many countries, from Japan to the Mid East. Let see how big a hit their government purse takes when they don't have uncle Sam protecting them.

We should start by scaling back from S.Korea and Japan. Both of them are industrialized powers who can protect themselves. We could save a lot of money .
You are a funny man MicroBrew, dumb as a rock but funny. Quoting Pat Buchanan is very funny in its own right... speaking of dumb.

punch-drunk is offline   Reply With Quote
Old 10-05-2009, 09:31 PM   #10
ThRiLl
MSgt. Mack "Dirt Diver" Gerhardt
 
ThRiLl's Avatar
 
Join Date: Sep 2002
Location: Ft. Griffith, MO
Posts: 8,561
vCash: 500
I have it on good authority that they are actually switching to Ron Paul Dollars.


__________________
Disciple of the Realpolitik

Women should dress in white like all other domestic appliances.-- Bernie Ecclestone
ThRiLl is offline   Reply With Quote
Reply

Bookmarks


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


Latest Threads



All times are GMT -5. The time now is 06:39 PM.

Sherdog.com Forum Rules Clear Cookies Social Groups Lost Password
Contact Us - Sherdog Forums - Archive - Privacy Statement - Terms of Service - Top - AdChoices

Skin made by Alex. © iStyles.uni.cc Powered by vBulletin Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
forums.sherdog.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. ©2014 All Rights Reserved.
monitoring_string = "fd5733925866a04e50edd70f38dfaa35"
monitoring_string = "603ac9fff68f23709f2a42bf5e29272b"