Excerpt from Al-Jezeera
Alan Greenspan, the former chairman of the US central bank, or Fed, has said that inflation rates in Gulf states, which are reaching near record levels, would fall "significantly" if oil producers dropped their US dollar pegs.
Speaking at an investment conference on Monday in Jedda, Saudi Arabia, he said the pegs restrict the region's ability to control inflation by forcing them to duplicate US monetary policy at a time when the Fed is cutting rates to ward off an economic downturn.
"We prefer always to act with all the GCC countries," Sheikh Hamad (prime minister of Qatar) said.
Qatar currently chairs the six-nation Gulf Cooperation Council.
"It's now time for the Gulf to have its own currency," he said.
Sheikh Hamad said such a currency should be "like the Japanese yen or other currencies".
Deutsche Bank said last month that both Qatar and the UAE will probably cut ties to the US dollar this year and track currency baskets as Kuwait did last May.
A little background: the deal for decades was that oil exporting Arab nations would sell oil only in dollars (so everyone who needs oil also needs dollars), in exchange, the U.S. would provide.. uh.. 'protection' - queue *Godfather* theme. Occasionally, someone gets 'mouthy' and starts talking about selling oil for euros, and weeze gotta go have a talk wit dem.
One would think, in a year when our sick economy is going to need round the clock care, the front-runner would be the doctor who has studied it and actually predicted the '87 recession ... in '83. Is a four year heads-up too good for you?
But, no, our 'top' 3 choices(sic) are a well-spoken empty-suit socialist, a shrill tyrannical socialist (to make Empty-suit seem reasonable) & a fascist who can barely pronounce "sub-prime" and whose mind is still fighting a war that ended 30 years ago in a jungle most people can't find on a map ... well when he's not following the advice of known supporters of the Reconquista.