The Arab states of the Gulf region have agreed to launch a single currency modelled on the euro, hoping to blaze a trail towards a pan-Arab monetary union swelling to the ancient borders of the Ummayad Caliphate.
“The Gulf monetary union pact has come into effect,” said Kuwait’s finance minister, Mustafa al-Shamali, speaking at a Gulf Co-operation Council (GCC) summit in Kuwait.
The move will give the hyper-rich club of oil exporters a petro-currency of their own, greatly increasing their influence in the global exchange and capital markets and potentially displacing the US dollar as the pricing currency for oil contracts. Between them they amount to regional superpower with a GDP of $1.2 trillion (£739bn), some 40pc of the world’s proven oil reserves, and financial clout equal to that of China.
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.
The Emirates are staying out for now – irked that the bank will be located in Riyadh at the insistence of Saudi King Abdullah rather than in Abu Dhabi. They are expected join later, along with Oman.
The Gulf states remain divided over the wisdom of anchoring their economies to the US dollar. The Gulf currency – dubbed “Gulfo” – is likely to track a global exchange basket and may ultimately float as a regional reserve currency in its own right. “The US dollar has failed. We need to delink,” said Nahed Taher, chief executive of Bahrain’s Gulf One Investment Bank.
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Oh wow, words can describe how bad it is going to be when other countries dump the dollar. That is all this country is anymore. Just a stack of monopoly money.
ReplyDeleteAmerica is still the greatest nation in the world. We are the pride and envy of the world. We are a shining city on top of a hill. The world needs our leadership.
ReplyDeleteamerica used to be the greatest nation, we are soon to see what it is like to be a 3rd world nation.
ReplyDelete4:37 the last man standing, you're the guy on the movie 300 when all the arrows come flying down on you...everything comes to an end deal with it
ReplyDeleteOil will set ever new highs as the dollar declines and the new Arab currency gains against the dollar, this will in turn devistate the US economy.... Tremendous amounts of money will be needed to buy gas and the consumers consuming will be over along with the consumption economy!!!
ReplyDelete@4:37
ReplyDeleteYou should change the verb IS for USED TO BE, until it allowed crooks to print money for it's needs, even though Thomas Jefferson warned you.
The problem as I see it: we're a nation that has turned our back on God. This is no longer our parent's America, it has gone so awry!
ReplyDeletefake god has nothing to do with this, this is the work of evil men and no god or fairy will save you but yourself
ReplyDeleteMore kindling for WWIII. Unless the usual suspects are behind the gulfo, I'd imagine that this is a huge incentive for them moving on this petro-central bank.
ReplyDeleteUS gonna invade Iran soon to save dollar?
ReplyDelete7:00pm I hope not. Just thinking about all those innocent people getting killed to protect a fake economy is nauseating.
ReplyDeleteIf it is the work of evil men, it is the work of countless evil men who did nothing to stop it and everything to participate in the game and perpetuate this state of insanity. But I assume most would have continued blindly and indefinitely if they could have, just like many of the folks here who can only but paint a nice comic book boogey-man explanation of why things look so bad because they dont understand how their lifestyle helped contribute to the current fall of Rome. The answer is that the rest of the world could support our excesses for only so long before we broke their backs.
ReplyDeleteSo is this the point where other countries decide to ditch the dollar? This isn't looking good at all...
ReplyDelete11:57: The truth is that there is more than enough money and resources for everyone; the reality is that greedy inhumane humans hoard it all for themselves while everyone else has to suffer.
ReplyDeleteThey see this as a game. He with the most toys is the Top Dog or whatever. It's all a game for them.
Talking bout the revolution. Get ready.
ReplyDeleteJust like when deer or some other fuzzy animal over-populates an area and consumes all its resources, there is infinitely enough for everyone I suppose, right? Wrong buster! Try again. But yes the greed is a systemic problem that is insurmountable until we get rid of the dollar and our love for it in the process, along with governments and hierarchies.
ReplyDeleteMy mind still boggles when people contend that the world can support infinite growth, when all they need to do is look around them. Thats what our economy is built around and that is why we we are starting to fall apart at the seams. WAKE-UP CALL.
ReplyDeleteWhat to do, what to do, tch tch....
ReplyDeleteDestroy Iran and ensure the dollar survives albeit temorarily, or allow Iran to become a super state (remember the Shiites in the Gulfo region) and ensure longevity of the dollar as the Arabs run to Uncle Sams loving arms.
Then again Israel just might throw a spanner in the works.
Israel dictates what we do, controls our foreign policy, not the other way around. Liars and scoundrels. Before the ignorance start hoping up and down please study up on the difference between Political Zionism (Israel) and 'Jewish.' That goes for all the ignorant christians also who believe they are supporting 'god's chosen' lol so sad.
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