The Dollar Demise – Oil States Dumping US Dollar

by the Left Coast Rebel

Not being able to sleep, (awoke at 2am), I am putting my early morning time to use. The headlines today are simply shocking, between the Steele/ACORN affection story, the Dalai Lama US snub, ACORN embezzlement,……..I have this from the Independent re: the demise of the US dollar, a ground-breaking story. Let not your eyes glaze over, (a little economic jib-jab coming), for this is something that will truly effect each and every one of us.

From the Independent, via Memeorandum, The Demise of the Dollar –

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil….

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 that oil will no longer be priced in dollars.

The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China’s former special envoy to the Middle East, has warned here is a risk of deepening divisions between China and the US over influence and oil in the Middle East.

This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil – yet again turning the region’s conflicts into a battle for great power supremacy. China uses more oil incrementally than the US because its growth is less energy efficient. The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold.

Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the
transition from the dollar in nine years’ time. The current deadline for the
currency transition is 2018.

The world is uniting to dump our dollar. I am not an economist but I can surely tell you that this is incredibly horrible news. I completely disagree with the last passage above. Barack Obama is not trying to fix the US economy, he is trying to transform the US economy into a quasi-socialist European type model. Just look at his push to take over the health-care industry and the Cap and Trade scheme as well. Just look at the car-manufacturer takeovers, the ever higher tax burdens coming down the pike, the so-called quasi-trillion social spending ‘stimulus’ bill. While our economy burns to the ground, while our dollar is de-valued and jettisoned by the world our leadership here at home uses the crisis and public-panic to push forward an agenda to radically alter the country as we know it.

This also explains, to a great extent; the bizarre treatment of the Dalai Lama. Look no further than the sections in bold relating to China. China owns a good part of our national debt now. China owns a good part of us. Patently obvious.

Our economy and way of life is in a battle for survival. Not only can we not count on our leadership at home to hold the axiom, “Is it good for America,” the rest of the world is lining up against us….

But then again we are living in the Obamanation and this is actually part of the plan.

An abomination.


Andrew33 said…

I have been asking why has the price of oil been heading north of $70 for some time now while the price of a gallon of gasoline has been falling here. This explains why. Ultimately Obama wants to destroy the dollar completely in favor of a new international currency, like the Euro. You realize that the time of transition between the european currency being phased out and the Euro coming into being was the time that Soros made his fortune. He did so by speculating on the German "Mark" if I recall correctly. Now Soros is selling the dollar short, knowing that Obama is printing more than enough for it's value to drop. If this goes down the way I fear, something very bad will happen in DC.

TAO said…


Shocking isn't it! But realistically anyone of sound mind would have seen this coming a long time ago and done something about it many years ago.

Basically, gas will become very expensive in the United States, the dollar will be devalued, and treasury bonds will have to pay a higher interest to attract buyers; which means all credit will get more expensive.

What you are seeing is not so much a transformation of our economy by the Obamanation but the fact that reality is that the only solutions available to us are to mimic the european socialist countries.

Its not a path we have chosen but rather the only opportunity left to us for all the horrible decisions we made in the past.

Sparky ♥ ∞ said…

Check, check and "Oh Waiter, CHECK PLEASE!!" I want off this planet now. [sigh] I just hope folks are ready to weather the economic storm ahead. I truly worry about my fellow Americans.

Sorry to hear you couldn't sleep. Bless your heart. I hate having nights like that. I pray that you can rest now and enjoy peace for a space of time. Have faith, for God is still in control my friend. 🙂

Rational Nation USA said…

LCR, I am certainly not an economist either but like TAO have seen this coming for awhile.

I, however, am in disagreement with the premise we should mimic the European Socialist model.

What we ought be doing is returning to a true free market economy (circa pre 1900)and re establishing the gold standard. Although, at this point in our history I admit to not knowing how we would accomplish it.

TAO said…

Rational Nation,

Right now we basically have no options, when you consider that the vast majority of Americans are unwilling to make the personal sacrifices necessary to achieve what you state.

Look at the healthcare townhall meetings…quite a few senior citizens, who enjoy the benefits of socialized medicine protesting socialized medicine for others!

That the reality or absurdity of our political environment.

We do need to totally re enigneer our economy and return it to some sense of sanity but the big issue is that no one wants to pay that price but rather want everyone else to pay the price for fiscal sanity (which includes not only the government, but businesses, and individuals).

Andrew33 said…

I agree that gasoline prices will rise rapidly as the dollar crashes. I believe that gas prices are being held artificially low. The reason for that is the 2010 elections. There is no one single factor that hurts a party in power in American politics like a gas crunch. In the previous election, would the dems have gained so many seats on Capitol Hill without anger over the 06-08 gas crunch? The repubs were the perceived party in power because Bush was president. I believe that the gas crunch contributed to Obama's election but not exclusively. I believe that Obama knows that a gas crunch now would destroy his agenda and so his big money friends are preventing that until after the midterm elections.

TRUTH 101 said…

I looked in earlier and figured this was another typical righty playing chicken little. I read on CNN that oil states said they had no plans to replace the dollar. I came back to apologise LCR. Whenever someone says "We have no plans to …" that means they have plans to.

I have to agree with TAO though. Our situation has made these decisions unavoidable. Much like the stimulus package.

Andrew33 said…

The stimulus package was totally avoidable. So was tarp, as was bailing out GM and Chrysler. In the stimulus package how much of the $100,000 per person (beyond just taxpayer) did you get? Now giving $100,000 to each and every American would have been stimulus to the economy. Spending the same amount of money on improving transportation in this country would have stimulated our economy long term, but giving so called stimulus money to political contributors and to support groups like Acorntidesseiuapollo/Soros has not helped our economy one bit. I live in metro S.Florida. I just went up to walgreens. 2 years ago traffic would have been gridlock between home and Walgreens. There was not one car on the road between here and there today at 3pm. Now tell me after reading this, that the stimulus was either necessary or working. Just for the record, I live in a "blue" county that got absurd amounts of stimulus money, but it has not helped the people.

Bob Qat said…

I doubt Mr Obama sincerely understands his damage to the American economy is true evil. America has always promoted ability ahead of politics, class or religion.

Mr Obama represents the opposite view: Political correctness, incompetency and religious environmentalism are what matter to him. He may view himself as the moral agent setting things right.

Sad, though. Economic freedom has always led to economic and social justice. Mr Obama's style of administered freedom historically leads to a dark age. Losing America will be bad for the entire world.

– ~ –

One thing you may wish to think about…. If Mr Obama makes the dollar unattractive because of inflation and foreigners get out of the dollar, what effect will such inflation have in the US?

The first impact is rising prices. Another, more sinister impact is people who hold their assets in cash form will get a drubbing. Now think, Who holds most assets in cash? The rich? No, they invest. The middle class? No, they invest and go into debt buying houses.

That leaves the poor. Under the Obamunism, the poor will take an incredible beating. And they will be told to blame capitalism and George Bush. Mr Obama is making a classic authoritarian move.

Left Coast Rebel said…

@ Andrew – I can see the validity of that theory.

@ TAO – Funny thing is I agree with you in many senses. Inflation is a giant tax increase on the middle class and the poor too. It is shocking and sad to see this.

@ Les – I agree, back to basics.

@ Truth – Thanks for the honesty and thanks for reading, just don't let that Right is Right critter know that I *****gasp******** actually respect you and TAO from time to time. Of course we totally disagree on a lot of stuff too. But I like that you guys frequent the site.

@ Bob Qat – Sad, though. Economic freedom has always led to economic and social justice. Mr Obama's style of administered freedom historically leads to a dark age. Losing America will be bad for the entire world.

That is brilliant and spot-on. I am glad to have you in the camp here.And yes, you are right, inflation kills the poor and middle class the worst…..

Daniel said…

Well, us Europeans reading these comments, we can't believe our eyes.

First, why do you keep blaming Obama? The mess you are in began in the 90's, with outsourcing and plastic money (credit cards), when you started living on debt as a nation. But it was outsourcing that really cut the branch you were standing on – you basically let the rich corporation to tunnel out your country. Obama has nothing to do with that.

What's coming now is only a result – you've been drinking on debt for a long time and now the innkeeper lost the rest of his patience and threw you out. It's your worshipped "free market" correction – you consume a lot, and produce a little, so you end up bankrupt. It's that simple. Why should Chinese who produce all the stuff you use live in poor shacks, while you drive expensive cars and live like kings? Why? In a truly globalized world, there is really no reason for this disparity.

So, finally demons you created caught up with you. You created nations of slaves to toil for you, and in the end, you have to compete with them for living – and that's a good lesson, don't you think?

The last nail to your coffin was of course Bush's war campaign – that was the stupidest last stone that started the avalanche.

So stop whining, sell your cars, apologize to nations whose lands you have destroyed – and start working hard again. From fraudsters and white collar ponzi schemers, go back to being workers, farmers and craftsmen. It will only do good to you.

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