"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."
What I find interesting about this is that it will make all the inflationists to happy. However, as we have seen with this market NO trade is allowed to be easy. On that basis alone, inflationists should be careful about counting chickens. But clearly the dollar move as I indicated in my "Market Observations" post last night is not complete. I think my alternate scenario that I have been discussing has gained stature. I expected the dollar to rise to the upper boundary of its diagonal. It has not even done that before breaking decisively below it once more. Today's market is very important. If we can get selling into this gap - that what I want to see...that's the only thing that will keep the current market structure pointing immediately down.
When all the rappers decided to get paid in euros rather than dollar's that was the top in the euro...I guess when the manipulators and government officials decide to do so also...they will be equally well or better timed.
see article here
