Fatwa Against the Dollar? (Clerics Tell Saudi Rulers to Curb Inflation)

Fatwa Against the Dollar?

blogs.telegraph.co.uk

The Saudi royal family rules by a delicate compromise. Although pro-Western in military and economic alliances, it relies on the endorsement of the Wahabi clerics as a key source of legitimacy.

A message issued by 26 leading clerics warns that inflation has reached intolerable levels in the Gulf kingdom.

While it does not vilify the dollar explicitly, the apparent political aim is to undermine the country’s dollar peg.

The statement was posted across the Islamic world.

(visit the link for the full news article)



Related AboveTopSecret.com Discussion Threads:
Gulf Arabs Could Drop Dollar Pegs in Unison [UPDATE]
OPEC to Study Currency Basket for Pricing
Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse
Petrodollar Threads

[edit on 12/20/2007 by Gools]

This is the story that the editorial is based upon: Clerics tell Saudi rulers to curb inflation

Saudi Arabia has no political parties, limiting avenues for expressing discontent at government policy. But the clerical establishment enjoys a position of power and influence in society and on government.

The repercussions of the current economic troubles in the world are far reaching and this development cannot be easily dismissed or brushed aside in my opinion.

If the clerics succeed in forcing the ruling Saudi family's hand in removing the country's dollar peg (or if they simply give them a reason to join other gulf nations in calling for a removal of the peg - see related threads above), then you can kiss the petrodollar cycling system goodbye - along with the world's current economic system.
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blogs.telegraph.co.uk
(visit the link for the full news article)

[edit on 12/20/2007 by Gools]

Interesting but is also a lot of business deals going on between the Arab Kingdom and the US going on right now.

So I wonder if somebody is not communicating around here, or perhaps this is pertaining the oil only.

Remember this story?

Iran's oil minister, Gholam Hossein Nozari, declared, "The dollar is an unreliable currency in regards to its devaluation and the loss oil exporters have endured from this trend." Iran has proposed to OPEC that the U.S. dollar no longer be used by any oil-exporting countries. As the oil emirates and the Saudis have already decided to reduce their holdings of U.S. dollars, the United States might actually find itself having to pay for its energy imports in euros or yen.

www.economyincrisis.org...

You know sometimes people tend to forget how link together this countries could be when it comes to business and oil, is all about money.

Originally posted by marg6043
Interesting but is also a lot of business deals going on between the Arab Kingdom and the US going on right now.

Business deals are done with the royal family.

The royals on the other hand have a tenuous grip on power over their people. The people are kept in check by the clerics who can cause a lot of trouble for the rulers if they choose.

The House of Saud is stuck between the proverbial rock and a hard place on this issue.

An old agreement stipulates that the US will give the House of Saud military protection in exchange for Arabia being to keystone country in the petrodollar game.

The population went along with it because of the riches it brought to the kingdom but as economic times get tougher that passivity on the part of the populace is threatened.

This is the trump card that the clerics are playing with at the moment.
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FATWA is that short for FAT cats in Washington? It feels as if the Government wants to see the Dollar fail so they can begin the new AMERO production.

Let's see, ahab the arab says the are no longer taking the Dollar for oil, China and Russia has hinted at not taking the Dollar anymore.

Most countries are going to the EURO for payment of goods and the last time I checked the exchange rate for $100 US Dollars into EURO's was you get $68 EURO's, Not good .



[edit on 21-12-2007 by Nailer]