Honest Money

The GCC Currency Forum 2008 will be held on June 15, 2008 in Dubai, United Arab Emirates. (1)

Starting with the question; “What is the rationale for the proposed unified currency with the Gulf Cooperation Council (GCC)?”,
it will discuss what lessons from the European Union’s currency union can be applied in the move towards a single currency for the GCC. (2)

Once
the world will be allowed to know that
the past three decades of cheap Arabian oil
have been made possible by the flow of cheap gold
to the Saudi Arabia oil-central bank
then
most will start to understand what the GOLD EURO really means.

Reuters reported on Wednesday
that
Venezuela will not abandon the US dollar as a currency for oil sales, despite the Opec member’s trend toward asking for payments in euros for certain contracts (3)
and that
whereas in the past Iranian officials have said that oil remained priced in the US dollar but with actual payments carried out in other currencies,
an Iranian official was now quoted as saying that Iran is conducting ALL its crude trading in euro and yen, instead of the US dollar. (4)

Oil and gas for euro
simply because the euro is evolving into a GOLD EURO,
through the European Central Bank marking its gold reserves to market.

Time is up for those interventionists who think that
by calling for intervention in the currency markets,
if the dollar continues to drop,
it, the dollar, could recover.

The problem is that Friday’s joint intervention by the US Federal Reserve and the European Central Bank
to pump an extra $82bn into the banking system (5)
shows that those interventionists also exist within the European Central Bank.

It is to be hoped that the GCC Currency Forum 08 will
argue for an end to this confusion,
by condemning intervention in currency markets,
so that oil can be priced in euro now.

Ivo Cerckel
ivocerckel AT siquijor DOT ws

NOTES

(1)
GCC Currency Forum 2008
http://www.itp.net/events/gcccurrency08/

(2)
04 May, 2008
Experts to bring the Euro perspective to the Gulf
http://www.dubaichronicle.com/2008/05/experts-to-bring-euro-perspective-to.html

(3)
UPDATE 2-Venezuela says will not abandon dlr in oil sales
http://www.reuters.com/article/oilRpt/idUSN3053405620080430
SNIP
CARACAS, April 30 (Reuters) – Venezuela will not abandon the dollar as a currency for oil sales, Energy Minister Rafael Ramirez said on Wednesday, despite the Opec member’s trend toward asking for payments in euros for certain contracts.

(4)
Iran conducts all crude trade in euro, yen -agency
Reuters – USA
http://www.reuters.com/article/oilRpt/idUSBLA02024820080430
SNIPS
TEHRAN, April 30 (Reuters) – Iran, the world’s fourth-largest oil producer, is conducting all its crude trading in euro and yen, instead of the U.S. dollar, an Iranian official was quoted as saying
+
In the past, Iranian officials have said that oil remained priced in the U.S. dollar but with actual payments carried out in other currencies.

(5)
From The Times
May 3, 2008
US Federal Reserve and European Central Bank pump an extra $82bn into banking system
Gary Duncan, Economics Editor
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3864287.ece?Submitted=true
SNIP
The US Federal Reserve and the European Central Bank united yesterday to open a new front in their battle to quell the persistent money market strains that are fuelling the global credit crunch.

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