Louis Proyect quoted: > The demise of the dollar > > In a graphic illustration of the new world order, Arab states have launched > secret moves with China, Russia and France to stop using the US currency > for oil trading > > By Robert Fisk > > Tuesday, 6 October 2009 > 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.
I'd say that the main effect of this would be to totally end the international seigniorage power of the US$ (i.e., the ability of the greenback to claim real goods, services, and resources simply by being printed). But hasn't that power been deteriorating for a long long time? If so, this would be the last nail in the coffin of US$ seigniorage rather than killing it... -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
