Score one for the new girl – Report that OPEC to drop dollar for oil purchases was actually an attack on the dollar
When I saw the report that OPEC was replacing the dollar as the currency used for purchasing oil I knew something was wrong. It appears I was right –
It’s the biggest mystery in global finance right now: Who conducted a sneak attack on the U.S. dollar this week?
It began with a thinly sourced but highly explosive report Monday in a British newspaper: Arab oil sheiks are conspiring with the Russians and Chinese to quit using the dollar to set the value of oil trades — a direct threat to the global supremacy of the greenback.
So the piece by Robert Fisk of the Independent shocked currency traders around the world and almost instantly sent the value of the U.S. dollar spiraling downward and the price of gold skyrocketing to an all-time high, as a hedge against a weakened dollar.
The story doesn’t name any officials who had allegedly participated in the secret meetings involving the Arab states. It didn’t say where the meetings occurred or when. Other than saying the plan is to stop using the dollar by 2018, there was precious little detail to the account.
An analyst’s report from the Royal Bank of Scotland concluded, “Fisk is a veteran of the Middle East. … he is also increasingly associated with more radical theories thus weakening the credibility of the story.”
In other dollar news Bill Quick notices an unjustified slap at Sarah Palin by an analyst from the American Enterprise Institute in a Financial Times article on the declining dollar.
This would probably be a good time to let the AEI know what we think of Mr. Ornstein’s remarks.
American Enterprise Contact Info
Main telephone: 202-862-5800
Main fax: 202-862-7177
Media Contact –
I have to say that it wouldn’t break my heart if Ms. Rodman went home in tears from all the polite but strongly worded calls, emails, and faxes of protest she receives today. Tell your friends people lets not stop until Ornstein is forced to issue an apology.
And to think I woke up this morning thinking I was going to have a nice day but between this and the Nobel Peace Prize that has been blown. I guess I will have to share my latest Mr. X story later on.