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Saudi Central Banker Confirms that US Dollar is on its Deathbed
In Hong Kong, Mohammed al-Jasser, the head of the Saudi Arabian Monetary Authority affirmed that the US dollar’s role as the world’s reserve currency is coming to an end when he stated, “The dollar is still preeminent in its role as a reserve currency.” We should recall former US Federal Reserve Chairman Alan Blinder’s statement, “The last duty of a central banker is to tell the public the truth” (PBS’s Nightly Business Report, 1994) and thus be astute enough to realize that the often hollow words of Central Bankers serve as a contrary indicator of the truth.
When listening to a Central Banker speak, one should recall the infamous balcony scene from the classic Woody Allen film, Annie Hall (1977), as a case study for how to interpret “Central Banker speak”. In that infamous scene, though both Annie Hall (Diane Keaton) and Alvy Singer (Woody Allen) converse in English, subtitles appear in the film as they speak that reveal the true thoughts behind their hollow words. The subtitles comically reveal that Annie is insecure about her conversational skills while Woody is thinking about sex throughout the whole conversation, thoughts that betray the very words they speak. As history very frequently reveals Central Bankers’ words to be the exact opposite of their thoughts, all Central Banker’s public declarations should be accompanied with subtitles as well.
So here's my subtitled version of Mohammed al-Jasser's words:
Saudi Central Banker Mohammed al-Jasser: “The dollar is still preeminent in its role as a reserve currency.”
Subtitle: “Since we still predominantly accept US dollars for the sale of our oil and we know the US dollar is doomed, I will publicly tell the world that we support the dollar. Perhaps my words as an authoritative Central Banker can fool people into believing the dollar is a safe haven and perpetuate this already faltering US dollar bear market rally to provide us with adequate time to execute an exit strategy to dump our remaining petrodollars before the US dollar implodes.”
Those that are looking towards this latest US dollar bear rally as confirmation of a year-long uptrend for the US dollar in 2010 are likely to be hugely disappointed.
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Hey dark pool, got over your hangover yet? I really didn't understand your comment last night on Tylers' post "England's Flagrant Gold Manipulation" might want to check out my response.
1oz silvers bars?
Nah, too bulky. 1/2oz silver coins is what you want to have.
tenth ounce gold coins are very convienient
size of a dime, not as thick
While I agree with the sentiment, this piece can only be classified as pure propaganda.
Since Dec 1:
Gold is down 10%. USD is up 10%. Silver is down 20%.
If that's what "the end of $" means... it looks good for US.
-BBH
Everybody runs to the SELL SIDE of the Titanic......BUY
Everybody runs to the BUY SIDE of the Titanic.....Sell
Problem is....There are SEVERAL Titanics....
<deleted - wrong thread>
The U.S. dollar policy is implemented by the DOD,
the CIA, the company ne Blackwater and their collective minions
In a nutshell, "If you don't like the dollar you will be eliminated."
now that's a policy that actually works!
Hasta la vista!
If that Saudi royal family decides they don't want the dollar then their regime will be replaced by one that does take the dollar and they will suffer the fate of Saddam Hussein, a rather noted Middle East former head of state who didn't want to take dollars.
S. Hussein's regime was not eliminated because of his disdain for the dollar. It was eliminated by the ZOG because he was making $30,000 payments to the families of dead Palestinian suicide-bombers. Mission accomplished: since that elimination, there has been one (1) suicide bombing in greater Israel.
So morally that would make us (the usa) a financial rapist?
Same thing for Iran:
Is your country's Sheeple realizing your green shoots are crabgrass?
Are pitchforks suddenly becoming scarce?
Any evil countries complaining about the USD?
there's a prescription for that, and the prescription is another War! I mean, distraction!
Most certainly, but now, the question becomes: who will pay for the next war? Will China keep on buying U.S. Treasuries if the USA attack Saudi Arabia, which is, after all, one of China's oil supplier?
I doubt it. And there lies the quandary: each war gets a bit more costly, a little bit more pointless, a little harder to finance. The rest of the world (you know, this vast place outside of the US) becomes a bit more weary, a bit more disgusted by useless conflicts and sabre-rattling.
The stranglehold named the dollar (as reserve currency) is slowly slipping. And the Empire is about to fall away with it. Watch and see.
+1
When sustaining the unsustainable, each successive intervention has increasingly diminishing returns.
TO:A LV
Exactly..
the End of Empire
Think of the Crimean War, then Anglo-Boer Wars, ending in WWI and WWII whereby England lost all trying to save itself via the imperial route.
I say the Most ******* Empire in History...the USA...
will continue for quite a while longer.
the Chinese haven't even figured out how to build an aircraft carrier yet....but we are building fortressses in their back yard...
Afghanistan....like the Chinese occupying and building huge military bases in British Colombia.
Don't know which Sun Tzu quote to put here, so many would fit:
"Pretend inferiority and encourage his arrogance. "
"The supreme art of war is to subdue the enemy without fighting."
"If he is secure at all points, be prepared for him. If he is in superior strength, evade him."
I'm not saying the Chinese are is perfect shape, but they have not fallen into the trap the Russians did of trying to beat the U.S. at their own game. No nuclear arsenal, no carrier fleet. Like the Germans against the British armada, they are going with subs and missiles right now. They are still behind but they also learned from the lesson of Ho Chi Minh on how to defeat the U.S. They would like to make fighting them like trying to take out an anthill with a rifle.
So ur sayin that the Opium Wars were straight out of Sun Tzu?
You might wanna recheck that history book - the Germans lost. The U-boat Corps had some of the highest loss rates in any branch of service in the entire war. They were VERY dangerous places to be.
The Chinese are a joke militarily. A much more significant nation, at least in terms of power projection, is India.
The Germans lost to the Soviets. Everybody else was a sideshow. But I agree with your India comment.
"It will be a war between an elephant and a tiger. If the tiger stands still, the elephant will crush him. But the tiger does not stand still. He will leap upon the elephant. And slowly the elephant will bleed to death." Ho Chi Minh
I think perhaps a good Sun Tzu quote might be "They...need not fear the result of a thousand battles, for they win in advance, defeating those that have already lost."
Not to mention a coupl'a EMP blasts in orbit over the Lower 48 would turn us all into cannibals inside of a month.
And just imagine what that would do to a population of 1.6 Billion, of which 1.4 Billion are hungry.
1.4 of the 1.6 billion doesn't have electricity anyway, so they would be totally oblivious, for a day or two, to the fact that 200 million had lost there electrical grid and communications.
...'electric go away'..electric? what electric?
The baijiu will still be a flowin'!
http://en.wikipedia.org/wiki/Baijiu
Ahh, yes indeed.
If everyone did this wouldn't we collectively be better off?
The Question of Bankruptcy
http://tinyurl.com/yfrcpto
So in order for the central banker to communicate something bullish for the dollar he should have said: "The dollar is doomed, we are unloading." Right!
Don't believe any rumors unless you hear them from me.
That must be the best onliner that sums up this whole decade! :)
"The guy with the gold is getting ambushed quick."??? I do not think so! Anyone who hasn't purchased a personal financial insurance policy by holding physical gold could be wiped out by a devaluing dollar. We all have health insurance, so why not insure your financial future with some gold in your portfolio.
So what? It is dying from the same disease that is decimating all other fiat currencies. We'll need a good name for it, like the Black Death in the middle ages.
The only other scenarios I can see for a reserve currency besides the dollar are:
1 Going to SDRs or a newly named equivalent as was the talk in the heat of the last two big $$ drops.
2 The GBP after a very messy un-EUROing following a continuation of this debt crisis that gets out of control.
Neither seems too likely unless there are radical new forces injected into the current cross currents supporting the $.
A 'World Currency' like the SDR/Basket ideas put forth strongly over the past 2 years will be politically difficult here in the US, if it is backed by the FED, Treasury and/or the POTUS, as Americans are getting increasingly wary of their loss of control and the loss of the dollar as a reserve currency would be blamed on Obama and probably sink his 2012 run.
The EuroZone would collapse into a very messy puddle of shouting mobs should the Euro be abandoned and if it was, the GBP would still have to try to compete with the Germany for a dominant European currency, something that would probably leave both unacceptable as a World Reserve.
But we live in strange times I think much of this depends on what exactly who is pulling the strings of the Central Banks, IMF & BIS on the highest levels. To me it seems like the battle over the $ as a reserve is still at least 2 years out, and may never develop if the EuroZone suffers significant collapse that the UK can't decouple from effectively. For now I think the best we can do is view things "through a glass...and darkly".
The title of this article is misleading IMO.
It's leading. We'll have to see if it's a miss or not. I however wouldn't freaking play Battleship with it.
Third
Fourth
Ditto. This article is NOT an article. The author took a statement, then in his opinion rants that it is a contrary indicator with ZERO facts to back it up. If the Saudis said one thing then ACTED in another manner, THEN it would be more useful. Dear author--could you please add some facts and analysis to support your article?
Sorry ZH, but this article is actually better suited for a comment, thus far.
True, but look at the wonderful discussion it started.
I second that.
Physical gold? Ya right. Last I looked it won't buy me squat. Of course I can take my physical gold to some shop or mail it in for a massive haircut to get dollars back to actually buy something. If things get that bad where gold is only needed then you'd better have guns, food, and water. The guy with the gold is getting ambushed quick.
Does your gun have serial #1 on it, mfer?
If not, then YOURS AIN'T THE ONLY ONE OUT THERE.
Someone is going to ambush YOU for your precious food, water, and ammo, ya idiot
Some will ambush (and ally) better than others. These alpha males will thus concentrate resources into the new, feudal domains, and pass their genes on to the next generation...the ultimate form of power.
Massive haircut? Try Tulving, Apmex or various local providers of exchange worldwide. Gold does buy via exchange in many countries, it is that USA banksters and the Federal Reserve central bank have done all they can to remove gold from the minds of USA investors. Of course this makes sense as central banksters want you to keep their PONZI scheme going and gold stands for another system of holding value.
Travel outside the USA and you will find many dealers in Europe and Asia who will gladly accept gold as a form of currency.
You many also want to see what is happening in Zimbabwe
www.youtube.com/watch?v=s3LdNxV0yPM
+1
Zimbabwe is absolutely horrible; imagine currency inflation magnified; I see, a "doe in the headlights" scenario. Sure there will be new currencies....after they bleed these to their last drop. Global credit perhaps? Gold will sure be worth something then, for what do you think they will say about the "worth" of the new credits? Gold....Silver....Commodities....Resources....these will all have absolute worth and value. Art also, added because the soul seeks worth in living the true good life; not for a backing of currencey, ;)
my local jeweler told me a few weeks ago he was paying $30 for a pennyweight of 14K gold. i don't remember what the spot was then, but couldn't have been much under $1050, not much of a haircut.
Even in the US, some businesses except gold and silver as
payment. It depends on the owner.....
Yadda yadda yadda... Same old, same old.
Can't you try, at least, to, I don't know, find something new and interesting to say? Obviously not.
Just move along and stockpile guns and ammo like a good little boy, will you?
Looks like a pretty healthy bid over spot to me, but then I'm not spouting off about that which I know nothing of:
http://tinyurl.com/yz5qqj6
In times of stress (or in earthquake/flood/hurricane country), you should have those things anyway. It's the Boy Scout motto, Holmes... Be Prepared
Not by the likes of you. Thanks for the laff
Hmm, if I wanted to trade in an ounce of gold that I bought a year ago, I'm ahead of the game by about $300, last I checked, even with the "massive haircut".
Someone who owns gold might make an easy target, but those who own some portion of this phony economy are going to have everything taken from them AUTOMATICALLY. There isn't even any need for guys with guns to come. You just starve to death.
I can take my gold and get out of the country and use it to get anywhere in the world and start a new life. As the Arabs say "grab your gold and run."
There seems to be 3 outcomes:
1. Things stay mostly the same as deflationary forces of 20%+ real unemployment counterQE.
2. Inflation at a rate near or above the 70s. Gold can be an awesome hedge.
3. Hyperinflation ala Zimbabwe. US society would likely collapse or martial military law. Gold would be dangerous to use without protection against the rioting masses or the military would confiscate it if they knew you had it.
4. The aliens who put us here are as tired of us as we were with Space Invaders. They put the joysticks down and pull the plug.
Lights out!