The dollar's role in world trade is declining almost as rapidly as the federal government is conjuring fiat money out of thin air. The latest blow comes with the creation of a Gulf Monetary Council, with the aim of establishing a multinational petro-state currency. Ambrose Evans-Pritchard reports:
The Arab states of the Gulf region have agreed to launch a single currency modelled on the euro, hoping to blaze a trail towards a pan-Arab monetary union swelling to the ancient borders of the Ummayad Caliphate.
"The Gulf monetary union pact has come into effect," said Kuwait's finance minister, Mustafa al-Shamali, speaking at a Gulf Co-operation Council (GCC) summit in Kuwait. [....]
Saudi Arabia, Kuwait, Bahrain, and Qatar are to launch the first phase next year, creating a Gulf Monetary Council that will evolve quickly into a full-fledged central bank.
The Emirates are staying out for now - irked that the bank will be located in Riyadh at the insistence of Saudi King Abdullah rather than in Abu Dhabi. They are expected join later, along with Oman.
The ultimate goal? A Pan-Moslem currency, beginning in theGulf, backed by oil and gold and spreading to all Islam-dominated nations as a refutation to what they consider "Jew" banking and the Jews' fiat derived currencies. Islam considers Jews and Christians the worst sort of apostates because they have clear, concise Commandments regarding money, yet create currencies directly, diametrically opposite the Commandments of the God they say they follow. Islam, fundamental Islam, considers Jews, Jewish-dominated banking and fiat currencies as the worst sort of insult to Allah.
The last time a currency was backed at par with a proper balance of gold and silver, that nation drained the dominant nations of their brains and wealth and energetic competitiveness because that currency insured wealth instead of being an instrument of confiscation via inflation and deflation.
That nation was America.
Wealth fled here like nothing ever before seen. The following opinion letter appeared in the London Times by the Exchequer of the Bank of England, upon the occasion of this upstart and brash United States of America printing its own currency at the end of the Revolution, without cost of interest and further, backed at par with gold and silver,
"....if that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed, or it will destroy every monarchy on the globe."
The surest way to break America is competition to the dollar with real money, if neither Congress nor the Executive responds in kind.