Is The Chairman's Plan To Kill The Dollar About To Be Derailed?

Tyler Durden's picture

The Independent has released information that Arab States, along with China, Russia, Japan and France are about to end the dollar's hegemony. While snippets like this have been previously discussed, usually accompanied by lots of posturing, nothing firm had ever materialized. If the latest overture turns out to be real, that would be a dramatic hit to Ben Bernanke's attempt to inflate trillions of debt on the back of a rapidly devaluing reserve currency. Ironically, the end of the dollar's pain may now become Bernanke's new sad reality as with the loss of its reserve status, perpetual dollar devaluation becomes a moot point. Oh, and a side effect, first oil, and soon all other commodities, will soon stop being priced in USDs.

From The Independent:

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.

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.

h/t Deadhead

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JackAz's picture

It was inevitable that the economies which stand to be harmed the most by the dollar would try to find a way to de-couple from it. The next act in this play is sabre-rattling. The denoument is war, most likely on a world-wide scale.

When the dust has settled, the history writers will ask the obvious question: Why did the Americans allow a handful of bankers to not only destroy their economy, but to drive the once-great country into a ruinous depression and an even more ruinous war?

seabiscuit's picture

Please keep it down! I'm watching a Tivo Jerry Springer show, then Lost. Honey, bring me another beer!

Benthamite's picture

CNBS is showing that Porn special for the 18th consecutive day if anyone is interested.

Project Mayhem's picture

Oil and gold pricing will halt in USDs if there is a currency crisis

SWRichmond's picture

Otherwise known as "Backwardation".

Anonymous's picture

you are exactly correct...i should have read your
comments before responding below....

the wealthy are generally smarter and certainly
much better organized than the mass
electorate especially when confronted with the
mystical magic of strong delusion served up
by "higher" education and the the cia-fed controlled
media...the sheeple are no match for that
jaugernaut....

but the lord god yahushua will deliver us....the
powers of hell shall not prevail against him....
and we shall be delivered from both tyranny and
the grave....mammon will be slayed.

Anonymous's picture

ah sorry, some of us are waiting for Revelations to be over so we can finally close the Book and begin a new chapter, thank you.

Anonymous's picture

Hopefully the denouement will be "fuck oil" and the administration will push at least electric vehicle production into overdrive, there are a lot of smart people here in the US. Put them to work on the oil dependency issue before we lose them.

Joe Sixpack's picture

It's not going to work if we tie our future to the regulation of "CO2". Drop that, and we can do it. Of course the question is 'can we do it in time?'.

 

www.EnergySolution.US

dhengineer's picture

With Obama threatening to destroy the coal industry, just where does all of the electricity come from for those next-generation cars?  If a car is plugged into an outlet, it becomes a coal or nuclear powered vehicle.  Where is all of the lithium going to come from to make all of the batteries?  Hint:  we will be dependent on a small country in South America.  Wind generators?  The necessary rare earth ores for the permanent magnets come from China.  The list of dependencies goes on. 

The loss of oil affects not only the transportation industry, but agriculture (fertilizer), plastics, pharmaceuticals, construction, and most of our modern society. 

We can thank the wonderful boyz at the Federal Reserve and the Treasury for destroying our currency and our way of life in the process.

Got gold?

defender's picture

I agree.  I work at a company that does cutting edge research on fuel cells.  One estimate that I heard is $6000 for enough power to run a car, with most of that cost being the platinum.  If you look at the production of platinum you will see that there is no possible chance to even convert 10% of the cars to fuel cell power.  

Batteries are even worse.  What is the life span?  10 years?  Then what are you going to do with the battery?  They are highly toxic, and they don't recycle very well. 

The only way that I can see things being done for a sustainable future is using compressed air to fuel your car, and using solar power to compress the air.  The problems with this system are that 1) solar power is too expensive currently 2) the manufacturing of solar cells is harmful to the environment and 3) the need for consistent sunlight.

I am hoping to get 1) and 2) figured out using something similar to this: http://www.youtube.com/watch?v=bVwzJEhMmD8  If anyone has any links for TiO2 solar dyes, electrolytes, or similar, please post them.

Hephasteus's picture

There's a super advanced capacitor system that would fiill the bill. But it's being horded by the asshat military mongers. It's really amazing. I wish I could find the article on it.

Anonymous's picture

Lithium batteries are not very toxic.

And they are highly recyclable.

We should invade a certain small south american country now, before they get too powerful.

SWRichmond's picture

Do they have WMDs?

Gilgamesh's picture

Chile, get powerful?

defender's picture

Not toxic?  As in "Do not dispose in landfill" not toxic?  A link for you: http://www.monmouth.army.mil/cecom/safety/sys_service/b_cobalt.pdf

As to recyclability, I have never been involved in it, but there is most likely large amounts of waste generated when they recycle them.  Otherwise I stand corrected.

Hephasteus's picture

Heh. You're favoirte icecream must be plutonium nut crunch if you think lithium is not very toxic. But the biggest problem with lithium isn't JUST that it's toxic it's a great explosive and incindiery device and 20 lbs of it will give you a whole new view take on tihngs. Like it will make some wrecks easier to work. You won't have to save the occupents merely scrape up the half molten chasis.

http://www.youtube.com/watch?v=WeWq6rWzChw&feature=PlayList&p=2C047A93F6...

narlah's picture

I believe you, there is tons of problems if we just switch and expect a solution tomorrow morning. To point out the good part of the oil shortage, i will use a quote :

"The solutions to our problems will not come about through the application of reason or logic. We do not live in a reasonable or logical world. There is no historical record of any society that deliberately and consciously modified their culture to fit changing times. The real factors responsible for social change resulted from biosocial pressures inherent in all social systems. It is brought about by natural or economic occurrences that immediately threaten large numbers of people."

Jacque Fresco

So in short - the very NEED can change the society - people may stop kill/laught/taunt/buy any inventions that can change the business model of the corporations or god forbid lower the amount of oil sold daily. People will start to think and use what they have in the most effective way - no more 5 litre engine for 80kg person. People will start using mass tranzit system more - and thus optimising the transit system itself. I.e. if we change the life and business model from "keep the statue quo"  to "hell lets try, might work" we might find a new ways of dealing with the problems.

Anonymous's picture

agreed

Anonymous's picture

If Obama is saying that, the only reasonable thing to do is to wait for coal powered cars to come out.

Anonymous's picture

Anonymous said: "there are a lot of smart people here in the US"

Yes, but they're only here because they're well paid. If the dollar crashes they'll just go back to wherever they came from.

Anonymous's picture

americans need to ask themselves to what extend it is also their fault they are letting their great nation falter and fall into the abyss powerless save for a few bloggers' effort. you can drag a cow to the river, but you cannot make it drink unless of course it wants to. The cow represents americans, who have become too lazy to think, drunk in consumerism and insouciant of the misdeeds around them. The corrupt politicians are a mirror of the american public - you deserve what you get if you are willing to go along without questioning, sometimes without even bothering to exercise your vote, and you deserve nothing good if you allow yourselves to be duped time and time again by oilmen, neo-cons, lawyers who never held a proper job before becoming president, actors, con-men and con women (Pelosi ha!) to be their leaders. The education, healthcare, judicial, political, social systems are all broken and no one has courage to want to fix it. You should be thankful someone in the world is still shipping goods to you for your electronic entries that is the US dollar.

Cow's picture

Why does it have to be cows?  How about horses?  Besides, if I knew what "insouciant" meant, I'd probably be upset.

SWRichmond's picture

Don't say no one.  Besides, are YOU doing anything about it?  I am, and have been.

Anonymous's picture

>Why did the Americans allow a handful of bankers to not only destroy their economy, but to drive the once-great country into a ruinous depression and an even more ruinous war?

Which time?

WWI?

WWII?

Iraq? or ???

Anonymous's picture

That question was never answered after the Great Depression and into World War II which lagged the wars in China Japan , and Europe ( cuz we are slow learners ) . Banks caused that mess ( credit debt ) . And same thing now . How foolish we are and have been. Human nature and greed just gets worse by the day .

Anonymous's picture

Well said. In 1990 they tried to push UK to the Euro
over Maggie's dead body, which allowed Soros to break
the Bank of England. Once a socialist, always a
socialist?

The epitaphs of the dollar's may be premature at best,
as the plan may take until 2018 to implement, if it all.

Meanwhile it is a strong warning shot across profligate
America's bow.

Will not be surprised to see IMF and World Bank style
austerity measures imposed on Americans and Brits.

UK just announced those on the dole face caps or
outright reductions. Medicare and Social Security next
on the chopping bloc disguised as 0Care?

jg's picture

Hurry up, Chinese, Japanese, Russians, and sheikhs!  Save us Americans from The Fed, because weak-kneed, mushy-spined Congressman will not.

I hope Ron Paul's efforts succeed, but the only thing that The Cabal will quickly respond to is a gun pointed at their head, held by our overseas creditors.

Please, pull the trigger, overseas creditors!

SWRichmond's picture

Hear, Hear!

Patrick Henry: "Liberty, the greatest of all earthly blessing — give us that precious jewel, and you may take every thing else! But I am fearful I have lived long enough to become an old-fashioned fellow. Perhaps an invincible attachment to the dearest rights of man may, in these refined, enlightened days, be deemed old-fashioned; if so, I am contented to be so."

Missing_Link's picture

I for one welcome our new Sino-Russo-Japanese-Middle Eastern overlords.

Anonymous's picture

Last chance to buy GOLD !

Ghettomedic's picture

Last chance until the next commerical break when AM talk show hosts pump it.

PolishHammer's picture

It's never been worth zero.

phaesed's picture

Wouldn't it *REALLY* be a shame if the dollar came back after that. However, you're assuming that deflation isn't the ultimate objective of the Fed.....

Michael's picture

I look forward to the complete and total economic collapse of the United States. It's the only thing that will stop the bad people from doing the bad things they are doing to us.

chumbawamba's picture

So sad.  So true.

I am Chumbawamba.

sgt_doom's picture

Sounds like a cool thing to say, Michael, but have you ever been in a country where it has actually happened?  It won't be a fun ride, and people, who are now on a rat-eat-rat basis, will pretty soon be on a for-real people-eat-people basis.  (I take my very fat bankster with hot sauce, thank you!)

Anonymous's picture

The ones that caused this won't be the ones that pay, unfortunately.

MsCreant's picture

Sgt_Doom,

[In my best Sara Palin] Gosh durn it, you know we have told you time and time again about those fatty banksters. They clog any and all arteries they come into contact with. Just look at what they are doing to the US, hmmm? Do you want that to happen to you buster? I thought not! Now put those banksters down. Maybe chase them around some to get leaner cuts of meat out of them, then add them back to your diet.

This link is not for the squeamish.

http://www.churchofeuthanasia.org/e-sermons/butcher.html

 

Jendrzejczyk's picture

We must taste like cr@p if you need to use that (kitchen sink) marinade to hide the flavor.

Idi Amin said humans tasted fine, just "saltier than leopard"---but you can really never trust a dictator.

Anonymous's picture

And will be supplanted by foreign bad people doing bad things to us, as well as neighbors, rioters, hungry zombified masses.

Locusts strip the land, and the remaining people are lucky if they die only of famine.

Anonymous's picture

Actually, complete collapse of the U.S. economy is what they want. It will help convince the American people that a new world-wide currency and government is the way to go. The more economic distress, the more dependence there is for a big government to take care of everything for the people.

Anonymous's picture

Interesting comment from the guy who rails against climate change legislation due to the negative economic impact it would have.

You sound like a sociopathic child. The hardship of an economic collapse is predominantly borne by the lower classes. They are mere pawns, yet you want them to suffer so you can be right?

This site is starting to worry me sometimes.

Michael's picture

It is totally up to you guys after it happens to keep the US Constitution in tact and perhaps, start using it again. I don't remember even a single day in my lifetime when it was properly used.

Great Depression Trader's picture

 Interesting development. If true, here are the implications based on the present fundamentals:

world oil demand: 80 million barrels a day. US demand: 19 million.

80-19= 61 million barrels a day for the world

61 X 365 = 22.2 BILLION barrels a year

22.2 billion barrels X $70 a barrel = $1.540 trillion

So currently, $1.54 trillion are used to purchase oil worldwide. Were oil to be bought with a basket of currencies, assuming the US$ makes up at least 50% of the basket, only $775 billion in US$ will be neccessary. These dollars will go on the open market.

Will they end up in US treasuries or stock equities?? I have no idea beyond this analysis.

 

TumblingDice's picture

World oil production is 71.7 mil/day (down from 74.7 mil/day in july 2008 I might add)

http://www.eia.doe.gov/ipm/supply.html

Plus this plan is for the next nine years, and the oil picture is going to be so much different by that time that none of these calculations will matter. We will have bigger problems on our hands than the piece of paper bankers use to jerk each other off with.