The way forward for Kuwait
Posted by Ivo Cerckel on December 10th, 2008
The way forward for Kuwait to achieve decent oil prices.
Kuwait will take precautionary measures to counter the present economic crisis following the Eid holidays. (1)
In view of the current worldwide economic situation, especially concerning oil prices, Kuwait will formulate a financial plan that will help insulate the country against any instances of recession due to the fall in oil prices. (1, again)
The current worldwide economic situation is due to the phenomena of unbacked paper money (the metaphor of “printing” money is still being used for worthless digital liquidity representing “money”) and fractional-reserve banking.
The solution to this problem is that the 29 and 30 December 2008 Muscat, GCC Summit, where the 2009 Gulf Monetary Council (GMC), a precursor to the 2010 Gulf Central Bank (GCB), will be set up, will pool the GCC gold reserves, make this pool the reserves of the Khaleej dinar and periodically mark these reserves to market (-price).
In that case, every increase in the price of gold, will lead to an increase in the value (of the reserves) of the Khaleej dinar.
Gold is hiding in oil because oil is the only commodity in the world that is large enough for gold to hide in.
If the Muscat GCC Summit decides to pool the GCC gold reserves, make this pool the reserves of the Khaleej dinar and periodically mark these reserves to market (-price),
then every increase in the price of gold will automatically lead to an increase in the price of oil.
By same token, the present indecently low USA dollar-denominated oil prices will immediately come to an end.
Ivo Cerckel
(1)
Kuwait: Emergency financial steps after Eid
Kuwait Times
08 December 2008
http://www.zawya.com/Story.cfm/sidZAWYA20081210051151/Emergency%20financial%20steps%20in%20Kuwait%20after%20Eid
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