Gulf States, Russia, China, France and Japan Plan to Drop Dollar for Oil
The US Dollar has fallen on the international currency exchanges as a result of a secret report stating that numerous Gulf states are in secret talks with France, Japan, Russia and China to replace the dollar as the standard currency for trading oil.
One expert told the BBC that if the report turns out to be true, it "looks to be a very long-term thing with a few hurdles to cross." The report talks of the proposal being introduced over a nine-year period.
The report states that the dollar will be replaced with various currencies, including the yen, China's yuan, the euro, and a new currency planned for some Gulf states, including the United Arab Emirates, Qatar, and Saudi Arabia.
This has been attempted or considered by many recently, notably Iran. Saddam did this in Iraq and the US invaded 6 months later and reversed it. I think there are enough adoptees this time to prevent similar action.
i can see it happening very soon.its only a matter of time countries will change there markets to adjust to the dollar failure.it would be insane to pay for waste of power plus interest....
The US, particularly its massive military spending, is basically funded by the petro-dollar. A change to any other currency would lead to another major collapse in the US economy, something that is likely to cause a reaction of some sort.
The Dollar has become a joke on the international market. The rest of the world just watches the US print more and more of them knowing this can't be sustained and that for every new dollar printed the value of the remaining dollars drops. You can't print your way out of debt.
Buy gold and silver. Soon the paper dollar will only be good for starting fires to keep warm and wiping your ass.
The Chinese yuan, is not a currency that is actively traded on the open market, it has been undervalued for a long time, as a result, it is a sore point in the economic markets, where it should be trade freely in, and find its own level, but due to the Chinese government, this is not happening, watch out, if they do not do this prior to any agreement being reached.
Collapse of any agreement, will not be far behind, right now China is reacting as a single buyer, and is quite capable of overtaking some African nations, by levels of immigration from the mainland, ostensibly as mine development workers, in Central African nations,the levels are now at over 1 million in the last five years....They need raw materials and can, as a nation outbuy, any single company, in the west, as their currency is not valued correctly and because they act as a single unit they simply can buy anything they want, right now, because of American borrowing from them, they have every intention of seeing their people come out on top, in any competition for resources....
The first sign that this might happen, is when they do, because few will accept a new agreement, unless this is done first.........
Well said. Ive been wondering if we can just keep inflating our dollar and maybe stop buying all those terrible Chinese goods. With a weaker dollar people will start buying from us. People forgot America is still the worlds largest manufacturer of goods.
and when they release the other 6/7 of it, it will make it worse.
The money is not there to release it and won't be. We are a bankrupt country. The USA is broke. If we were a business we would have been shut down long ago. China is keeping us afloat if they decide to pull out we are done.
We are bankrupt? A country is not like a business. Every time the FED prints money the treasury must sell it as debt. And their are still plenty of people buying our debt. We still take credit for one of the worlds most stable countries and even this article admits that our reserve currency status wont change until 2019.
I read in the paper a couple days ago that only about 25% of US debt is held by foreign creditors, and that includes japan, EU and UK as well as China.
Thats the problem, their are not many people buying it. Thats why the federal reserve bank started to buying the bonds. So the US is buying their own debt with the money they printed. This can only go on for some time.
China relies on the west to boost it's industrial base. Seeing as it is still a good ways away from having a sustainable position as a consumer rather than a producer, I would not worry about China deciding to economically wreck the US. The US could nuke China tomorrow if they felt like it, but the chances of it happening are pretty remote.
