Wednesday, December 16, 2009

OPEC's Move To De-Peg From The U.S. Dollar Was Not Just Conspiracy Theory

“The US dollar has failed. We need to delink,” said Nahed Taher, chief executive of Bahrain’s Gulf One Investment Bank.

Hat tip to Jesse of Jesse's Cafe Americain (linked below) for circulating this story.  Despite being smeared as "pure conspiracy theory," it appears that the news report from Britain's "The Independent" in October that Arab Gulf States were discussing a move to eventually end the use of U.S. dollars to price oil was quite accurate.  Here's a link to my post on this:  LINK

The Telegraph UK is reporting today that Arab Gulf States have agreed to launch a single currency which will be modelled on the Euro and would likely be pegged to a global currency basket and ultimately float as its own currency:  "Saudi Arabia, Kuwait, Bahrain, and Qatar are to launch the first phase next year, creating a Gulf Monetary Council that will evolve quickly into a full-fledged central bank." Here is the article link:  Oil For "GULFOs"

The writing is on the wall here for anyone who cares to pull their head out of the sands of denial and look at what's really going on in the world.  China, India, Russia, Viet Nam, and Gulf State central banks are hoovering up gold and silver and are taking steps to remove the U.S. dollar as the world's reserve currency.  At the same time, our Government and Federal Reserve are implementing policies which are accelerating the increase in Government debt and which transfer massive amounts wealth from the middle class to big Wall Street banks and to the defense, oil and pharmaceutical companies.

I wonder if anyone who voted for Obama realized that the "Change" they were voting for was the "Change" in status of the United States into nothing more than a third world banana republic...


  1. They won't believe this until it happens because many Americans still think the rest of the world is not competent to have their own currency and manage their own financial affairs.

    Seriously. That is the mindset.

    To quote the deflationist thinker mannfm11

    "The dollar is the backbone of the world central banking system. It is the backbone of the China money system. The white cliffs of Dover are as likely to collapse."

  2. I officially nominate Dog the Bounty Hunter
    as 2010 Time Person of the Year.

  3. If they really are going to have their own currency Abu Dabi had better get out of that Citi stock deal they agreed to way back when. Why waste good cash? Things are getting interesting.

  4. the dollar is doomed. more doomed than the Raiders with Charlie Frye starting ahead of Russell this Sunday.

  5. And Gold gets crushed today. I was wrong about this being a short-blip correction as we are now at 2 weeks and counting.

    Never underestimate The Cartel.

    Joe M.

  6. It's okay. As you know, since you've been doing this since 2004, if memory serves me, a 2 week correction would be mild in the context of pm market corrections. Right now we're challenging 50 dma pullbacks and i'm sure some key fibonacci pullback numbers are in play. We'll see if the 50 dma levels hold or if we go on to the 200 dma. If latter, this pullback/correction/consolidation could last a while.

    HOWEVER, you'll see in JB's India/Viet Nam/Japan report in tonight's Midas, those countries are still buying, at least for now.

    A colleague of mine just pointed out that the premium of SBT.TO, which is CEF's silver trust that trades only on the TSX for now, is up to 14%. It had been 1-2%. That's a message, in my opinion.

  7. Who could blame them for wanting to head for the exits? Congress is about to up the debt ceiling again, Harry Reid is determined to have his health care 'historical moment', the EPA sez it's gonna enforce all those looney carbon laws anyway via regulation.

    And we're supposed to pay for this with what?

    We can't even drill for our own oil!

  8. Harry Reid is going to lose his Senate seat next year to the son of Jerry Tarkanian, the legendary, iconic, towel-chewing coach of UNLV's basketball team when they won the NCAA Championship. Sayonara Harry. Same deal for Dodd.

  9. Dave,

    It appears Gold has a solid floor at $1100. Let's see if the rally resumes from here. One thing is sure, Gold never rises as fast as it falls.

    In fact, since May, 2006, Gold has had 2 corrections lasting a total of 33 months. That is down to sideways action in 33 of the past 43 months.

    However, Gold has still managed to rise from $725 to 1225, an increase of 41%. This is a perfect example of how the manipulators temper excitement in Gold. It's called extend the game and pretend nothing is wrong.

    Joe M.

  10. Agree Joe. The only variable that bothers me right now is that fact that the cartel is not covering their massive futures short.

    It's funny because I was just chatting with someone earlier about that fact that gold has run up $500 since last November's low, and yet everyone freaks out over a $100 pullback. LOL

    I think we have one more push to new highs before we get the consolidation pattern you mention.

  11. Dave,

    I am not sure we will see another long consolidation period. I think the whole mess is about to blow up in their face.

    Willie talked about a run on the bullion banks and I think it's all about the fake Gold issue.

    I think the fuse is lit on the demise of the USD and American Empire over the course of 2010.

    Joe M.

  12. Joe, thanks for reminding me to read the latest Willie. I agree that the odds are skewed toward a short consolidation period. I've been writing that I think 2010 is going to unfold as a very difficult time for the U.S., with another big credit collapse coming.