OPEC to Study Currency Basket for Pricing

OPEC to Study Currency Basket for Pricing

in.reuters.com

OPEC is likely to discuss creating a basket of currencies for oil pricing at its next summit due to the steady decline in the dollar,...

The cartel is slated to hold a summit of the heads of state of OPEC nations in in November and a meeting of ministerial delegates in December.

(visit the link for the full news article)



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A founding member of OPEC indicating that the petrodollar cycling system is on it's deathbed.

I like the way this major bombshell of a story comes out on Reuters India on a Saturday night. You'd think there was a conspiracy to hide the hard truth from the masses or something.

This is essentially a confirmation of the trend away from the US petrodollar system. There are plenty of threads on ATS discussing other OPEC nations moving away from the dollar:

* the UAE's central bank diversifying away from dollars;
* Kuwait's abandonment of the currency peg to the dollar;
* Saudi Arabia refusing to cut interest rates in lock step with with the Federal Reserve;
* Iran selling oil in Euros;
* Venezuela's plans to sell oil priced in Euros; and
* Syria (not an OPEC nation) abandoning it's currency peg to the dollar;
* etc.

An eventual basket of currencies (with - no doubt - complicated rules and calculations) is the most likely outcome of the drastic devaluation of the US Dollar currently underway.

That means that the USD will become no better than any other currency out there and be backed by a country with massive trade and budget deficits.

The ability to fund those deficits is disappearing before our very eyes.

I'm sure the membership has some ideas about the eventual result.
.

in.reuters.com
(visit the link for the full news article)

You know this is happening so fast and so soon after our nation went into war with Iraq that it may me wonders if this has all been made to be this wake so our nations leaders can push the NAFTA and a new currency to their advantage.

The whole thing going on with the dollar is just insane.

[edit on 29-10-2007 by marg6043]

Marg,

I have been saying that for almost a year already. The intention is to bring the U.S. population to it's knees so that out of fear it will do anything the 'elite' wants it to do.

This is planned. As I've said a billion times.

reply to post by TheBandit795


Why do such a thing that is going to create a crisis in our own Nation and perhaps even a civil upraising.

Are this people so stupid as to go alone with all this agendas at the expenses of the nations population?

No all Americans will go alone with this without a fight.

I really hope that it's not so Marg...

Originally posted by TheBandit795

This is planned. As I've said a billion times.

That's looking more and more obvious Bandit, I do agree.

I keep waiting for at least a small bounce in the dollar, something to run a few stops and scare the speculators a bit and slow the decline, but it seems the PPT is only interested in fluffing the equity markets - no doubt to keep the average Joe feeling that the country is still booming, despite it's steady decline.

Looks like Weimar Republic 101.

Either that, or the fed is powerless to do anything about it even if they wanted to and has thrown in the towel

It's simply amazing to me that this story is not being picked up.

A google news search brings up Reuters as the only source with almost no coverage in any mainstream media.

I've heard rumours that the FED may be cutting rates by half a percentage (again) tomorrow. If that happens (or even 1/4 percent) then the prospects of OPEC moving away from the dollar are even greater.

This is major "earthquake" in the financial world and the silence is deafening.
.

reply to post by marg6043


I feel the same way.

Maybe that's why "they" just don't seem that concerned about the falling (or failing) dollar. They just keep spending and dumping billions into Iraq without a care. Even Hillary must be on the "up and up" on this agenda with the way she plans on spending money on her programs if she becomes president.

The fact that this announcement came out of Venezuela probably diminishes it's impact/credibility some. If it had come from the lips of a Saudi oil minister...COWABUNGA!

I understand your frustration Gools. Not uncommon for major US media outlets to boycott potential economic sticks-o-dynamite...especially when the originator is a known 'unfriendly'. I'm grateful for offshore sources like the Financial Times etc.

Good job posting this-up.

Currently the US is living above its means.
The only sensible thing the US government could do is to stop borrowing and spending such huge amounts of money . But even if the US creditors don't come knocking the country is headed for a fall because its education system spits out people that don't that Londoners speak english and that BS known as ID is also taught.

i was gonna say OPEC has nothing about this announcement on there website but ive seen less credible stories come through ATS and then be verified later so i will sit and watch. but regardless of coverage we are on a decline and its going to lead to god knows what in the US.

We'll have to see what the Fed's cut tomorrow does. If OPEC moves away from the US Greenback, I really can't see the Amero being far off. Maybe Hilary's first act as new president, if it takes that long. How easy it will be for the average person to take that move when they realize that the US dollar has lost it's preeminence as the world's leading currency for oil. The masses will eat it up, especially with the spin they'll put on it.

Originally posted by Gools

An eventual basket of currencies (with - no doubt - complicated rules and calculations) is the most likely outcome ...

this 'basket of currencies'
sound remarkably similar to the 'basket' of debt obligations
that were bundled into "CDO"s (collateraleralized-debt-obligations)
which are just beginning to unwind in the US markets,

the idea of spreading the risk with these 'baskets'(whether CDOs or Oil)
sounds good on paper----
but is destined to go 'kerplunk' because of the deliberate & global oversupply/saturation of USD
(Iraq for example, in an effort to make that gov't a economic vassel state)

Originally posted by OBE1
...Not uncommon for major US media outlets to boycott potential economic sticks-o-dynamite...

Speaking of sticks of dynamite: Gulf Arabs Could Drop Dollar Pegs in Unison.

Also with no media attention.
.

Originally posted by Keyhole

I feel the same way.

Maybe that's why "they" just don't seem that concerned about the falling (or failing) dollar.

Good point, is like our government has not intention to hide the fact that they do not seem worry about the falling of the dollar, they did a lame make believe interest in the housing crash and right now they are only interested on Iran and how many more billions they can scrape out of the American tax payer to keep supporting the corporate interest in Iraq.

Is like our nations economy and well being has been replace for the middle east interest supported by corporate American.

Is this the way corporate riddle governments work?

Any candidate under the two elite parties in this nation are supported and manipulated by big corporate American that is why Hillary or any other poppet going for the presidency within this two main parties are just the same.

The party associations are nothing more than to give a sense to the population that they have a choice.



[edit on 1-11-2007 by marg6043]

reply to post by Gools


Is not media attention because that is not in the best interest of the ones paying the big bucks to support agendas.

After the fiasco with Fema we can pretty much say that the media in this nation is under control and that is a fact.

could someone clear me a one thing:

How is it US governments fault that majority in USA is borrowing more than they can pay... US government really looks like the people on this issue..?

And it just might be that OPEC wants to stabilise the oir prices as USA will get what it deserves..

reply to post by northwolf


Great OP Gools

As to what it means ?? It sounds a lot like OPEC OFFICIALLY dropping the USD as its currency of choice for oil transactions...

And as to what that means, the previous posters on this thread have it covered....The USD falling, falling, falling.....Yet the Fed chose to cut rates...Assuming I'm stupid, explain the rational behind this rate cut....

If anything, this is a time for the Fed to aggressively increase rates, not to cut them in a short term band-aid solution to fix a short term credit crunch...

This will hurt so much more over the next 2 yrs than it will help over 6 mths....Damn that's sad

I mean, our Fed here in Australia is going to do the right thing on Wednesday and raise rates by 0.25%...Why ?

Because it is sensible and in the national interest...

My question is, why doesn't the US Fed appear to act in the whole national interest ?

I just don't get it...

*confused*

So whatis the economics of it all. IF the USD is cut as the main petrobacked dollar, then the main currencies i think people will be using will be the euro. Does that mean the Euro value will go up as well???? So bettter to invest in euro's now before this opec meeting?

Also for the amero to come into place wouldn't the peso be brought up to the value of the canadian/american combines since the peso is like 8 peso's per $1 or something.... so when it comes up to a $1: 1 peso currency wont the peso like be worth 8 times as much as it was overnight?