With the US Dollar dropping significantly again yesterday, (and gold gaining significantly) the blame is being placed on an article from Middle East based U.K. journalist Robert Fisk in the British paper The Independent.
Mr Fisk says his contacts tell him that the Gulf Arab nations along with China, Russia, France and Japan, are planning on ceasing trading oil in US dollars and instead will use a basket of currencies including Gold, the Euro, the Japanese Yen, the Chinese Yuan, and a planned new Gulf currency.
This is meant to happen within 9 years. The article is a must read and can be found here.
We believe it’s merely a case of when not if the US Dollar loses it’s roll as the world reserve currency. But it’s very interesting that gold is now also being mentioned as one of the pieces in a possible new basket of currencies. However the US dollar is getting so much bad press at the moment that we wouldn’t be surprised to see it gain some strength in the short term. So US dollar priced gold could go either way at the moment it seems.
Anyway if there is any truth to the report, it is just further proof of the growing distrust of the money masters in the US. Not surprisingly though there have been loud denials from the Central Bankers of most of the countries mentioned. Here’s a video of Robert Fisk being interviewed on the subject. At the end he mentions the fact that there have been such vigorous denials may well be strong proof there is some truth to the report!
If you want to see a number of opinions on the story check this commentary out…
Also this is an interesting video from Max Kaiser where he theorises that these countries are sick and tired of funding the USA’s wars across the globe, which is what they effectively do when buying US government treasuries. We discuss further the advantages the US has as the holder of the global reserve currency in our eCourse which you can access here.
Max also says his contacts reckon the new currency will be 50% backed by gold and that a 50% devaluation of the dollar is on the cards. All interesting stuff!