Prince sees dollar peg as key to a Gulf 'euro'

[emad]

July 16, 2005

Times
By Elizabeth Judge, Nic Hopkins and Gary Duncan



SIX leading Arab economies, including Saudi Arabia, may reconsider pegging their currencies to the dollar, under their plans for a “euro-style” Arab single currency in the region.

Muhammad Al-Jasser, Vice-Governor of the Saudi Arabian Monetary Agency, the country’s central bank, told The Times that the six oil-exporting nations — Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the United Arab Emirates — could link the proposed single currency to the euro, or to a basket of currencies.

“We have to decide if it will continue to be pegged to the dollar or if we will do something else,” he said, making clear that: “Nothing is ruled in or out.”

Under proposals for an Arab single currency, first mooted in 2001, the six countries in the Gulf Co-operation Council are expected to take the next steps towards monetary union next year, paving the way for a launch of the currency, possibly called the dinar, by 2010.

http://www.timesonline.co.uk/newspaper/0,,175-1695974,00.html

[Inland]

1. A peg to the dollar makes sense, since all the oil sales are denominated

in dollars anyway. Whether this is the first step in a plan to move away from pricing oil in dollars, I don't know.

[dutchdemocrat]

2. Not for long

The Euro is taking over...

[HysteryDiagnosis]

5. Look at what happens when the Euro takes over..... it's not

a pretty sight....




http://www.informationclearinghouse.info/article1443.htm


The Real but Unspoken Reasons for the Iraq War



Although completely suppressed in the U.S. media, the answer to the Iraq enigma is simple yet shocking. The upcoming war in Iraq is actually an OIL CURRENCY war. The Real Reason for this upcoming war is this administration’s goal of preventing further OPEC momentum towards the euro as an oil transaction currency standard. However, in order to pre-empt OPEC, they need to gain geo-strategic control of Iraq along with its 2nd largest proven oil reserves.

The Real Reasons for the Upcoming War with Iraq:
A Macroeconomic and Geostrategic Analysis of the Unspoken Truth

January 2003

"If a nation expects to be ignorant and free, it expects what never was and never will be ... The People cannot be safe without information. When the press is free, and every man is able to read, all is safe."

Those words by Thomas Jefferson embody the unfortunate state of affairs that have beset our nation. As our government prepares to go to war with Iraq, our country seems unable to answer even the most basic questions about this war. First, why is there virtually no international support to topple Saddam? If Iraq's WMD program truly possessed the threat level that President Bush has repeatedly purported, why is there no international coalition to militarily disarm Saddam? Secondly, despite over 300 unfettered U.N inspections to date, there has been no evidence reported of a reconstituted Iraqi WMD program. Third, and despite Bush’s rhetoric, the CIA has not found any links between Saddam Hussein and Al Qaeda. To the contrary, some analysts believe it is far more likely Al Qaeda might acquire an unsecured former Soviet Union Weapon(s) of Mass Destruction, or potentially from sympathizers within a destabilized Pakistan.

[Tace]

3. They Should Go For Gold-Backed Sted Fiat

They'll have the strongest currency in the world if they back it fully with gold.

[nashville_brook]

4. it's my understanding this will tank our economy

and that this could possibly be a "real" reason for the war in iraq.

Revisited -- The Real Reasons for the Upcoming War With Iraq:
A Macroeconomic and Geostrategic Analysis of the Unspoken Truth
http://www.ratical.org/ratville/CAH/RRiraqWar.html

Although completely unreported by the U.S. media and government, the answer to the Iraq enigma is simple yet shocking -- it is in large part an oil currency war. One of the core reasons for this upcoming war is this administration's goal of preventing further Organization of the Petroleum Exporting Countries (OPEC) momentum towards the euro as an oil transaction currency standard. However, in order to pre-empt OPEC, they need to gain geo-strategic control of Iraq along with its 2nd largest proven oil reserves. The second coalescing factor that is driving the Iraq war is the quiet acknowledgement by respected oil geologists and possibly this administration is the impending phenomenon known as Global "Peak Oil." This is projected to occur around 2010, with Iraq and Saudi Arabia being the final two nations to reach peak oil production. The issue of Peak Oil has been added to the scope of this essay, along with the macroeconomics of `petrodollar recycling' and the unpublicized but genuine challenge to U.S. dollar hegemony from the euro as an alternative oil transaction currency. The author advocates graduated reform of the global monetary system including a dollar/euro currency `trading band' with reserve status parity, a dual OPEC oil transaction standard, and multilateral treaties via the UN regarding energy reform. Such reforms could potentially reduce future oil currency and oil warfare. The essay ends with a reflection and critique of current US economic and foreign policies. What happens in the 2004 US elections will have a large impact on the 21st century.

[HysteryDiagnosis]

6. Even now... after we have made every effort to economically

colonize Iraq? Even after we have invested 13,000 severely wounded, 1800 dead, 200+ billion and 10's of thousands of Iraqi dead?? Hmmm... poor planning on somebody's part methinks.

[nashville_brook]

7. incorrect methods

catch more flies with honey than with depleted uranium

[reprobate]

9. Good description of "Mad George's Folly".

[Deja Q]

8. Uh-oh. Unpeg the dollar and chaos will ensue. Thanks reagan, bushies...

your debt and trade deficits brought about by offshoring is about to be called in.

[mccoyn]

10. Why don't we do it too?

Pag to US dollar to the Euro. If you can't beat them?

[daleo]

11. You better peg it to the dollar, Muhammad Al-Jasser

Bush tends to invade oil rich counties that threaten to quit using the U.S. dollar.

[Matilda]

12. If all the oil-producing ME countries acted in unison

just how many can Bush invade at once?

[daleo]

13. Yes, troops are kind of low for many more adventures.

Another invasion would probably require a draft.

[Barkley]

14. I wonder what Hugo Chavez thinks about this?

I hope he beat them (the 6 leading Arab economies) to the euro!