October 06, 2009
Ouch. That's Going To Leave A Mark
I'm not an economist, and I don't play one on television, but I don't think that this is very good news.
Gulf Arab states are in secret talks with Russia, China, Japan and France to replace the U.S. dollar with a basket of currencies for the trading of oil, Britain's The Independent newspaper reported on Tuesday."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," said the report, which cited unidentified sources in Gulf Arab states and Chinese banking sources in Hong Kong. It added that France had also been involved in the talks
Since the dollar is down against pretty much every currency except for Zimbabwe's (that's a joke, nitpickers), this can't bode well for the price of oil if true. At least for us and Britain. It will probably bode well for Russia, China, and Brazil and the Gulf States. You know, those diehard staunch allies of ours.
Oh well, I'm good. It takes me 3 minutes to drive to work in traffic. If they go off the dollar in the Scotch industry though, I'm taking up arms.
By Vinnie at October 6, 2009 12:20 AM | | l digg this
