In a graphic illustration of the new world order,Arab states have launched secret moves with China,Russia and France to stop using the US currency for oil trading

By Robert Fisk

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,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 Co-operation Council,including 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 that oil will no longer be priced in dollars.


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In todays Arab News (A Saudi Arabian English Paper) :-

'producers deny oil will ditch dollar':-





Producers deny oil will ditch dollar
Reuters






ISTANBUL: Big oil producing nations denied a British newspaper report Tuesday that Gulf states were in secret talks with Russia,China,Japan and France to replace the US dollar with a basket of currencies in trading oil.

The dollar eased in response to the report,which was written by The Independent’s Middle East correspondent Robert Fisk and cited unidentified sources in Gulf states and Chinese banking sources in Hong Kong.

It said the proposal was for trade in crude oil to move over nine years to a basket of currencies including the Japanese yen,the Chinese yuan,the euro,gold and a new,unified currency planned for nations in the Gulf Cooperation Council.

But top officials of Saudi Arabia and Russia,speaking on the sidelines of International Monetary Fund meetings in Istanbul,denied there were such talks. The two countries are the world’s largest and second-largest oil exporters.

Asked by reporters about the report,Saudi Arabian Monetary Agency Gov. Muhammad Al-Jasser said: 'Absolutely incorrect.' He repeated the same response when asked whether Saudi Arabia was in such talks.

'While everyone seems to be all abuzz over Gold’s new highs,you should be aware that these are nominal,not real highs.

Adjusted for Inflation,Gold is nowhere near its all time peak — in real terms,its only about half its prior highs:'

Read more:

http://www.ritholtz.com/...old-inflation-adjusted/

Please review the Crude Oil chart (http://tinyurl.com/ykly7ly ). I have used trend lines,a simple chart analysis tool to map out the various inflection points.

It is noteworthy that crude oil along with other commodities is rising amidst deteriorating economic conditions. Why then would commodities rise as business activity around the world slows? Where is the money to purchase these commodities coming from as unemployment soars and spending power declines?

The simple answer,my friends,is the U.S. Dollar in which most major commodities are traded. It is in a long-term downtrend that began in 2001. Thus,to reflect the declining purchasing power of the Dollar,commodity prices have been in an upward trend over the same duration.

We are bullish on commodities until the financial management of the U.S. undertakes measures to reverse the long-term decline of the Dollar.

The window is fast closing on bargain prices in the commodities complex brought about by the 2007 financial crisis. History will look back upon China's resource grab as a Sun Tzu master stroke.

Q: What do you get when you match Investment Bucaneers of China with Resource Rich Africa?

A: A golden decade.

'Kenya’s government is in talks with Beijing over development of a multi-billion dollar port and transport corridor that could provide a new export route for Chinese oil in southern Sudan.

The cash-strapped Kenyan government opened negotiations with Qatar over a potential $3.5bn investment in the port project late last year in return for a lease on 40,000 hectares of land to grow crops. But no deal was struck and Raila Odinga,the Kenyan prime minister,indicated to the Financial Times that he now viewed China as better suited to the project.....'

Read more:

http://www.ft.com/cms/s/...49a.html?nclick_check=1