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OPEC to drop dollar?

October 6, 2009

BIG red letters on Drudge Report – PAPER: ARABS PLOT TO DROP DOLLAR

I hope this isn’t true. The dominance of the dollar is one of the things that gives America special status in the world, but I wouldn’t be suprised if it is. This is nothing new I have been seeing reports of this since at least 2005. What is surprising is that it is being given so much credence despite the story originating from Robert Fisk. The man has a verb associated with his name derived from making fun of his overblown inaccurate reports and the last five paragraphs should raise eyebrows –

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.

small red letters on Drudge Report – Oil states say no talks on replacing dollar…

I have the feeling that this is being accepted so uncritically because of the current popularity of Glenn Beck. It fits in perfectly with his message of pessimism, collapse, and utter societal doom. (Which isn’t to say it isn’t true, but that it is bing accepted from a source that would normally be questioned)

elsewhere –

Cynthia Yockey continues her assault on Charles Johnson. Note to self never piss Ms. Yockey off.

Bill Quick links to a great article about an African teen who is improving his and his neighbors lives.

Drama Repellent – LOL

Megan McCardle refreshes Paul Krugman’s memory.

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2 Comments leave one →
  1. October 6, 2009 11:01 am

    The UN is certainly on-board with replacing the dollar with another “standard currency.” I’d heard the Swiss Franc not the Euro, but either would almost certainly preferable to America’s many enemies.

    I think such a move would result in widespread fiscal disruption here and could seal the political fate of whomever is in office at the time….which is why I say, “If it’s going to happen, please let it happen while the liberals rule the roost.”

Trackbacks

  1. Score one for the new girl – Report that OPEC to drop dollar for oil purchases was actually an attack on the dollar « A Conservative Shemale

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