The Times: MTM of gold wealth and oil wealth
Posted by Ivo Cerckel on September 18th, 2008
Oil producers are converting their petrodollars into the tangible wealth of gold.
That’s why both are linked.
Once gold will assume its correct value, oil will also assume its correct value.
Both will be marked to market (MTM).
If oil does not follow gold’s rise, oil producers will no longer be able to convert their petro-eurogulfs to gold at the same rate as now.
As I said this morning in
Gold is wealth – September 18th, 2008 by Ivo Cerckel
Ben Bernanke, chairman of the US central bank, has lost control. Gold and oil wealth now controls everything.
http://bphouse.com/honest_money/2008/09/18/gold-is-wealth/
Monika Malik, chief economist at EFG-Hermes Holding, Egypt’s largest investment bank, does not like that
She thinks that Gulf Monetary Union (GMU) is about a single currency.
Oman thinks otherwise.
Oman thinks that GMU is about pooling the gold reserves of the GCC states and marking these reserves to market.
That’s what the GCC Rulers will endorse in November 2008.
They will meet to that effect in November 2008 in … Muscat.
And yes, Muscat is the capital of … Oman.
From The Times
September 18, 2008
Gulf finance ministers back single currency plan
Sonia Verma in Dubai
http://business.timesonline.co.uk/tol/business/economics/article4775451.ece
SNIP
Furthermore, as a unified trading bloc, the Gulf would raise its profile on the world stage, allowing it to leverage its oil wealth collectively.
Detractors argue that it would never work in a region ruled by autocrats. Monica Malik, chief economist at EFG-Hermes said: “The easy bit is what they’ve just agreed to. The hard part is coming up.”
“You have to take this with a grain of salt. Because the Gulf economies are so similar to each other, the trade possibilities are not as pronounced,” Eckart Wörtz, an economist with the Gulf Research Centre in Dubai, said.
For Oman, GMU is MTM of gold reserves by GMA/GMC
September 16th, 2008 by Ivo Cerckel
http://bphouse.com/honest_money/2008/09/16/for-oman-gmu-is-mtm-of-gold-reserves-by-gmagmc/
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