Weeks after Iran officially announced it would replace the U.S. dollar—its value heavily dependent on Middle East oil trading—with euros in its foreign exchange holdings, The Independent Middle East correspondent Robert Fisk’s article, “The Demise of the Dollar,” breaks the story that: “In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the U.S. currency for oil trading” by 2018. I wrote of the alliance between Brazil, Russia, India and China (BRIC) here in June.

Russia Today (RT) reports on Mr. Fisk’s exclusive (3:25):

Al Jazeera had an exclusive interview with Mr. Fisk and Steven King, chief economist from the HSBC Group (8:21):

Mr. Fisk reports that Gulf oil powers planning “to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Cooperation Council (G.C.C.)” is the “most profound financial change in recent Middle East history”.

Mr. Fisk reports the G.C.C.—which includes Saudi Arabia, Abu Dhabi, Kuwait and Qatar—is planning this monumental shift in the global economic system in “secret meetings” that “have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil” with France. “The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years”—with gold as a “transitional currency”, according to the Chinese banking sources.

Today, gold hit a record intraday high of $1,043.45 an ounce—the best indicator that the purchasing power of every U.S. dollar in circulation is at an all-time low. Australia’s currency hit a 14-month high after raising the price to purchase it—the first major nation to raise interest rates since the global financial crisis was made public. “The U.S. dollar also dropped against most major currencies, weakened by further speculation that it could one day lose its status as the world’s reserve currency,” the Financial Times reported at the end of the day. This is the most regressive compulsory tax—inflation—in action.

“In a clear sign of China’s growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China’s reliance on U.S. monetary policy, to help rebalance the world economy and ease upward pressure on the euro,” Mr. Fisk adds. (More on this in today’s post on the World Bank-I.M.F. meeting with global finance oligarchs.)

Mr. Fisk reports this could be the start of an “economic war between the U.S. and China over Middle East oil” with Brazil and India showing interest in “collaborating in non-dollar oil payments”, adding: “Ever since the Bretton Woods agreements—the accords after the Second World War which bequeathed the architecture for the modern international financial system—America’s trading partners have been left to cope with the impact of Washington’s control and, in more recent years, the hegemony of the dollar as the dominant global reserve currency.

“These plans will change the face of international financial transactions,” one Chinese banker said. “America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate.”

The denials did come fast from central bank governors and Western journalists searched far and wide to debunk this story quoting the people who—true or not—would deny the truth of this story 100% of the time anyway. Though, a very long time would be required for a significant amount of nations to significantly abandon the greenback in a coordinated effort, the manufactured demise of paper currency–or, at least, every step away from it—in the direction toward commodity-based currencies is rational.

Camilla Hall at Bloomberg reports that Saudi central bank Governor Muhammad al-Jasser said in an interview Tuesday that Mr. Fisk called the report, “absolutely incorrect” and said,” the greenback “still serves our interests” because—unlike Iran—Saudi Arabia hasn’t unloaded its dollar holdings and in order to receive adequate value for those holdings, the perception needs to exist that faith in it is high. Were Mr. Jasser to not vehemently deny the G.C.C. plans, the dollar assets his bank currently holds would become worthless. Covertly coordinating a negotiation with the other Gulf oil powers, BRIC and the Eurasian Shanghai Cooperation Organization (S.C.O.) is a crucial step to avoid self-sabotage in implementing any plans to dump the dollar—not to mention the conventional and economic warfare waged by the U.S. on the global oil powers of Iraq, Venezuela and Iran after public abandoning the U.S. dollar.

What shouldn’t be mistaken is that the existence of the G.C.C. and a portion of its purpose to become more independent of the greenback is absolutely uncontroversial. “Jasser indicated the Gulf Cooperation Council nations have yet to decide on an exchange-rate policy for a common currency, a goal the group agreed to in 2001,” Ms. Hall reports. “Saudi Arabia ‘hasn’t lost hope’ that Oman and the United Arab Emirates would agree to re-join a planned Gulf monetary union, Jasser said Sept. 1. Saudi Arabia, Kuwait, Qatar and Bahrain are still part of the project, which might allow Gulf states to pursue a monetary policy independent of the U.S. All of the group’s currencies are pegged to the dollar except for Kuwait’s.”

Economics pundit Max Keiser confirms this story today on RT is consistent with his sources in Europe and the Middle East. Mr. Keiser cites emerging economic alliances excluding the U.S. and recent globalist summits to show that the illusion of greenback value is diminishing as the “war industry” runs the U.S economy (5:41):

The greenback’s saving grace is that just about every country has to have them in their reserves to buy oil. This places a forced demand on it, propping up its value. Diminished confidence in subjectively valued fiat money is due to its oversupply, world-renowned Trends Research Institute Director Gerald Celente tells RT—also describing the catastrophic significance to everyday American people of a dollar collapse that will create a global domino effect if nations continued to buy U.S. debt (5:09):

Comments
  1. al-Husayn says:

    Great writeup of this major news item – thanks for finding and posting the videos too. Gerald Celente has been going on about this for years and it looks like it is finally happening. Despite how precarious the U.S. position is at the moment, business seems to go on as usual with hubris continuing to reign under the Obama administration. The wars continually expand and the interests of wall street become even further enmeshed in government. Seeing this makes me glad that I live in Australia, though of course the whole world is affected by what is happening in the U.S. right now.

    nice blog btw.

  2. […] and possible inflation”. This comes a week after Robert Fisk reported at The Independent that Arab oil powers in the Gulf are conspiring “to end dollar dealings for oil, moving instead to a basket of currencies including the […]

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  4. […] is wearing thin as Middle East members of the Organization of the Petroleum Exporting Countries are conspiring with Japan and other countries to abandon the U.S. dollar. Iran has completely abandoned the dollar […]

  5. […] is wearing thin as Middle East members of the Organization of the Petroleum Exporting Countries are conspiring with Japan and other countries to abandon the U.S. dollar. Iran has completely abandoned the dollar […]

  6. […] is wearing thin as Middle East members of the Organization of the Petroleum Exporting Countries are conspiring with Japan and other countries to abandon the U.S. dollar. Iran has completely abandoned the dollar […]

  7. […] is wearing thin as Middle East members of the Organization of the Petroleum Exporting Countries are conspiring with Russia and other countries to abandon the U.S. dollar. “The head of Saudi Arabia’s […]

  8. […] is wearing thin as Middle East members of the Organization of the Petroleum Exporting Countries are conspiring with Russia and other countries to abandon the U.S. dollar. “The head of Saudi Arabia’s central […]

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