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The Robert Fisk article.
Dollar falls on oil plan report
The dollar has fallen following a report that Gulf states are in secret talks to replace the greenback as the main currency for the trading of oil.
Nations including Saudi Arabia and the United Arab Emirates were speaking to Russia, China, Japan and France, said the UK's Independent newspaper.
However, Saudi Arabia subsequently said the report was "absolutely inaccurate".
It caused the euro to rise 0.4% against the dollar to $1.47040. The pound also rose, by 0.4%, before falling back.
The pound reached $1.5991 before dropping back to $1.58920.
The fall in the value of the dollar had a knock-on impact on the price of gold, which rose to a record high of $1,036.60 an ounce.
Gold rose because a weaker dollar - in which it is valued - increases its attractiveness to investors.
The Independent's report said the Gulf states wished to replace the dollar over a nine-year period with a basket of currencies including the yen, China's yuan, the euro, and the new unified currency planned for nations in the Gulf Co-operation Council, which include Saudi Arabia, Kuwait, the United Arab Emirates and Qatar.
Kuwait also denied the article's claim.
"We have never discussed or proposed this," said Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah.
China's central bank suggested in March that the dollar should be replaced by a new global reserve currency run by the International Monetary Fund.
The Robert Fisk article.
Gold rises to record on inflationary expectations.
Bring it on...
That may save this nation.
Right now, with major trade using the greenback, the price has not dropped on the world market like supply and demand should have caused. The reason is the dollar is not being traded back for other currencies. As long as we trade oil in dollars, the dollar will be over valued.
I predicted the dollar would drop farther than it has today. It should, but it wont as long as greenbacks are in demand.
Once the dollar drops, we have a fighting chance of restoring this nations manufacturing factories and good jobs as foreign goods will cost more.
This is long past overdue.
Be careful what you ask for, you might get it...
Not only will the dollar lose value but the CPI will rise and inflation will rear it's ugly head...We have been financing our deficits with short term debt bought by China and other economic powers...as this short term debt is rolled over and interest rates rise on dollar denominated debt our deficits could very well strangle us...as for manufacturing we will NEVER be able to compete with China/India/Korea/Indonesia etc. on labor intensive manufacturing...those jobs are gone for good.
WC, inflation dove. Interesting.
I see it as a necessary pain we must endure to regain our national strength.
The Euro has been getting more expensive for us. That's good for our trade balance. Our products are cheaper to Europe:
Didn't find a good chart vs. the Chinese currency.
Anyone?
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