This is something that worried me for a long time and maybe "the sh-t will hit the fan" now. Let us hope that this is only a blimp and not a major attack on the US economy. This is potentially a very powerful WMD and directed against US, who was very stupid . It is however understandable if they lost their patience with US and are prepared to take the economical consequences of hurting the dollar and US. In financial circles, the trust in the word of US was lost a long time ago. The cost for the oil countries will however be enormous and they would not take it, if they still had any belief in the dollar as world currency. If they lost the belief in the US economical future, then they might use the reserves at the time when it would hurt US as most.
If this escalate, US might try to occupy more of the worlds oil reserves. The experiences from Iraq are however depressing, it is very difficult and militarily expensive to try to maintain the oil production under occupation. US have showed to be inept in drawing on the Iraqi reserves and any new conflict would hurt US the most. Even if US is militarily powerful, it is very difficult to translate this to a rise in oil production, which take a lot more manpower. In Iraq the oil production is barely a quarter to a half of the pre war production. The situation does not look good at all and it will spill over to Europe, if US take actions. US will find itself in a lonely spot and against the rest of the world and could result in less honorable wars in South America and other places who have energy resources with shorter and defendable transportation routes. Pressure on Canada to deliver will go up several magnitudes. Hakan At 20:46 22/03/2006, you wrote: >http://www.middleeastforex.com/index.php?section=147 > >UAE, Saudi considering to move reserves out of dollar > >WASHINGTON - A number of Middle Eastern central banks said on Tuesday >they would seek to switch reserves from the US greenback to euros. > >The United Arab Emirates said it was considering moving one-tenth of >its dollar reserves to the euro, while the governor of the Saudi >Arabian central bank condemned the decision by the United States to >force Dubai Ports World to transfer its ownership to a 'US entity,' >the UK Independent reported. > >"Is it protectionism or discrimination? Is it okay for US companies >to buy everywhere but it is not okay for other companies to buy the >US?" said Hamad Saud Al Sayyari, the governor of the Saudi Arabian >monetary authority. > >The head of the United Arab Emirates central bank, Sultan Nasser Al >Suweidi, said the bank was considering converting 10 per cent of its >reserves from dollars to euros. > >"They are contravening their own principles," said Al Suweidi. >"Investors are going to take this into consideration (and) will look >at investment opportunities through new binoculars." > >The Commercial Bank of Syria has already switched the state's foreign >currency transactions from dollars to euros, Duraid Durgham head of >the state-owned bank said. The decision by the bank of Syria follows >the announcement by the White House calling on all US financial >institutions to end correspondent accounts with Syria due to >money-laundering concerns. > >Syria's Finance Minister Mohammad Al Hussein said: "Syria affirms >that this decision and its timing are fundamentally >political."-Khaleej Times Online _______________________________________________ Biofuel mailing list Biofuel@sustainablelists.org http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Search the combined Biofuel and Biofuels-biz list archives (50,000 messages): http://www.mail-archive.com/biofuel@sustainablelists.org/
