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...(Read Full Post)