Friday, September 21, 2007

Who’s screwing who?

Fears of dollar collapse as Saudis take fright

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East. These guys own most of the US. Perhaps it's the FEDs job to get them to dis-invest at a know down rate (bit like Norther Crock). Not sure who screwing who here. See also 'China threatens 'nuclear option' of dollar sales' http://www.telegraph.co.uk/money/main.jhtml;jsessionid=N0AY3R4MOVEOLQFIQMFSFFOAVCBQ0IV0?xml=/money/2007/08/07/bcnchina107a.xml Again not sur who's crewing who here?

Posted by lloyd @ 01:25 PM (1101 views)
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7 thoughts on “Who’s screwing who?

  • The dollar rate at opening of the Paris market this morning was:

    Euro1 to $1.41. The dollar is trading at almost this rate now.

    At the end of last month it was around 1Euro to $1.35.

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  • Global Citizen says:

    I understand that US has got the most the gold reserves.. so why don’t they sell it and prop up the dollar?

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  • dohousescrashinthewoods says:

    Crikey.

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  • All dollar rich countries have a dilemma to face – the possibility that dollar devaluation might continue, and the risk that it might suddenly implode.

    For now, Hilaire Belloc’s cautionary verse seems to hold sway:

    “And always keep ahold of nurse, for fear of finding something worse..”

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  • I guess the FED et al are hoping to introduce the Amero on the the back of the broken $. I.e., they’ll collapse the dollar, and – hey presto – pull a new currency out of the bag. The dollar will be abandoned, redeemable only through the following conversion: 1 amero = $100,000

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  • Oh, and what can you buy with 1 amero? 1 coffee a Starbucks!

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  • Saudi may threaten to do so but with the US being such a big ally they won’t rick annoying the US by removing the peg.

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