Rumours about dollar

#1
http://www.independent.co.uk/news/business/news/dollar-tumbles-on-report-of-its-demise-1798713.html

Gulf Arabs have begun planning – with China, Russia, Japan and France – to move from dollar dealings for oil to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new currency planned for nations in the Gulf Co-operation Council, which includes Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean oil will no longer be priced in dollars. The revelation was met with public denials yesterday. The Saudi central bank governor, Muhammad al-Jasser, said: "The future is in God's hands. Today, the conditions are good for the arrangement we have." The Japanese Finance Minister, Hirohisa Fujii, said he "doesn't know anything about it".

Dennis Gartman, the US investment guru who writes the daily Gartman Letter, said that no one should be surprised to hear denials. "We are certain that spokespeople for every single nation will be brought to the fore to deny that any such meetings have occurred, that no such decisions have been made, that it is not in anyone's interest to have held such meetings or made such decisions," he told clients as The Independent story broke. "The market will care not a whit."
By the way, as I don't trust moron Putin then I keep my savings in different currencies (in Roubles, Euros and Dollars). Dollar depost brings me 12,25% per year, not bad at all.
 

Alsacien

MIA
Moderator
#2
KGB_resident said:
http://www.independent.co.uk/news/business/news/dollar-tumbles-on-report-of-its-demise-1798713.html

Gulf Arabs have begun planning – with China, Russia, Japan and France – to move from dollar dealings for oil to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new currency planned for nations in the Gulf Co-operation Council, which includes Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean oil will no longer be priced in dollars. The revelation was met with public denials yesterday. The Saudi central bank governor, Muhammad al-Jasser, said: "The future is in God's hands. Today, the conditions are good for the arrangement we have." The Japanese Finance Minister, Hirohisa Fujii, said he "doesn't know anything about it".

Dennis Gartman, the US investment guru who writes the daily Gartman Letter, said that no one should be surprised to hear denials. "We are certain that spokespeople for every single nation will be brought to the fore to deny that any such meetings have occurred, that no such decisions have been made, that it is not in anyone's interest to have held such meetings or made such decisions," he told clients as The Independent story broke. "The market will care not a whit."
By the way, as I don't trust moron Putin then I keep my savings in different currencies (in Roubles, Euros and Dollars). Dollar depost brings me 12,25% per year, not bad at all.
...until you factor in its devaluation against other major currencies in the last few years :wink:
 
#3
Alsacien said:
KGB_resident said:
http://www.independent.co.uk/news/business/news/dollar-tumbles-on-report-of-its-demise-1798713.html

Gulf Arabs have begun planning – with China, Russia, Japan and France – to move from dollar dealings for oil to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new currency planned for nations in the Gulf Co-operation Council, which includes Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean oil will no longer be priced in dollars. The revelation was met with public denials yesterday. The Saudi central bank governor, Muhammad al-Jasser, said: "The future is in God's hands. Today, the conditions are good for the arrangement we have." The Japanese Finance Minister, Hirohisa Fujii, said he "doesn't know anything about it".

Dennis Gartman, the US investment guru who writes the daily Gartman Letter, said that no one should be surprised to hear denials. "We are certain that spokespeople for every single nation will be brought to the fore to deny that any such meetings have occurred, that no such decisions have been made, that it is not in anyone's interest to have held such meetings or made such decisions," he told clients as The Independent story broke. "The market will care not a whit."
By the way, as I don't trust moron Putin then I keep my savings in different currencies (in Roubles, Euros and Dollars). Dollar depost brings me 12,25% per year, not bad at all.
...until you factor in its devaluation against other major currencies in the last few years :wink:
So maybe it would be wise to keep money in Pounds?
 

Alsacien

MIA
Moderator
#4
KGB_resident said:
Alsacien said:
KGB_resident said:
http://www.independent.co.uk/news/business/news/dollar-tumbles-on-report-of-its-demise-1798713.html

Gulf Arabs have begun planning – with China, Russia, Japan and France – to move from dollar dealings for oil to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new currency planned for nations in the Gulf Co-operation Council, which includes Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean oil will no longer be priced in dollars. The revelation was met with public denials yesterday. The Saudi central bank governor, Muhammad al-Jasser, said: "The future is in God's hands. Today, the conditions are good for the arrangement we have." The Japanese Finance Minister, Hirohisa Fujii, said he "doesn't know anything about it".

Dennis Gartman, the US investment guru who writes the daily Gartman Letter, said that no one should be surprised to hear denials. "We are certain that spokespeople for every single nation will be brought to the fore to deny that any such meetings have occurred, that no such decisions have been made, that it is not in anyone's interest to have held such meetings or made such decisions," he told clients as The Independent story broke. "The market will care not a whit."
By the way, as I don't trust moron Putin then I keep my savings in different currencies (in Roubles, Euros and Dollars). Dollar depost brings me 12,25% per year, not bad at all.
...until you factor in its devaluation against other major currencies in the last few years :wink:
So maybe it would be wise to keep money in Pounds?
I have investments in Euros and probably too many in pounds right now. Pound is 20-25% undervalue at the moment - expect a boost by UK election time next year of at least 10%.
Better still, invest in UK property.
 
#5
This one has been around for a while.

It could also be something put around by a Forex trader who has a position so that the market swings his way. Such things do happen.
 
#6
Alsacien said:
I have investments in Euros and probably too many in pounds right now. Pound is 20-25% undervalue at the moment - expect a boost by UK election time next year of at least 10%.
Better still, invest in UK property.
Maybe a football club or two?
 
#8
it's inevitable that the dollar will go bust at the current rate of spending in DC and the debt they are incurring. The printing presses have been going full bore since September of last year.

Anyone with half a clue can see that at the current rate there is no way the Fed can pay back the debt it is currently racking up. Instead they are playing games and have started monetizing the debt by selling bonds to middlemen and then buying them back with freshly minted dollars.

Inflation is on its way, and the current policies and agenda of the assclowns in DC is stiffeling the economy and will do so for a few more years. If "health care reform" (whatever the hell that is) passes it will only be a year or two before you see countries unpegging from the dollar....
 
#9
None of the countries mentioned have any interest in devaluing the dollar before they can quietly unload their holdings. The thing they're worrying about is that it'll go pop naturally before they can, leaving them with vast collections of the world's most expensive toilet paper.

There's been a slow but steady net sale of dollar bonds from China and Japan with IIRC Dubai upping its stake? Memory ain't what it used to be, but I think that was who I read was upping their stake.
 
#11
smartascarrots said:
There's been a slow but steady net sale of dollar bonds from China...
And China is the only saving grace at the moment as they hold signifcant sums of US debt. They are slowly converting thoer holdings into natural resources silently buying up mines and wells around the globe, mostly in underdeveloped african countries. Once they have relieved themselves of a significant portion of their holding they will happily let the dollar go pear shaped.....
 
#12
I heard that one ages ago as 'the real justification' for moving into Iraq. Alledgedly the oil producers were thinking of dumping the dollar and using the euro instead. It made as much sense as WMD.
 
#13
Am I wrong in thinking that the way the $ is used in oil transactions and if OPEC etc were to move away to another currency, it could collapse the US economy??
 
#15
re-stilly said:
Am I wrong in thinking that the way the $ is used in oil transactions and if OPEC etc were to move away to another currency, it could collapse the US economy??
Be afraid, be very afraid!

A 'weak' President - Sino-Asian 'tiger' economies - Russian 'naughtiness'.
 
#16
ctauch said:
Once they have relieved themselves of a significant portion of their holding they will happily let the dollar go pear shaped.....
Not yet they won't. Not until they can replace US import demand with a combination of domestic demand and opening other markets. They can only boost domestic demand other than in the short term by putting a decent welfare state in place so that their people aren't too shit-scared of unemployment or ill-health to do anything but save fanatically.

That kind of adjustment to the social structure takes time.
 
#17
Dollar? Do you mean Dollar Academy - good school, my kids went there. Why do the Chinese/Arabs want to change things? Or am I missing something? It must be my age.
 
#19
ctauch said:
They have already started down that road. Since the "economic downturn" in the US their exports to the US are off by at least 25%. Many companies are now looking to the domestic market to make up for the short fall.
Indeed, but the internal demand due to their internal market is still comparatively small. The bulk of internal demand is still being created by the government stimulus package, based primarily on big-ticket infrastructure. That’ll reap benefits for them in the long term, but not medium.

ctauch said:
The underlying problem they are wrestling with is to flog their product to the domestic market they a) need to lower the price b) raise the wages to increase the buyer pool and the most important thing is get the tight @ss cnuts to part with their dosh, seeing that the average chink saves about 30% of their income/wages.
You’re missing the non-market trick: the government is subsidising people to buy consumer goods like household electrics. The people get encouragement to spend some of their dosh while demand for the product stays up, keeping people in jobs and therefore earning money which they can then spend - and also be taxed on.

They generally can’t afford to not save, especially in rural areas. The dibao has only recently made it there and if you include sending money home or supporting parents and grandparents as well as yourself and family, you’ll see why there’s little left over for consumerism for a large chunk of the population.

The fanaticism for saving was one of the things that let their economy take off: their banks were able to loan actual money deposited with them instead of just making up some numbers one day.
 
#20
jack-daniels said:
Bah! I thought this was a thread about the top notch 80's combo!
Sorry fellas!
Great minds JD. Great minds. :wink:
 
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