The continuing financial crisis should not be blamed on excessive risk-taking by bankers who had an unbridled desire to make money in mortgages. The crisis is indeed  a monetary crisis, rooted in the lending of money created out of thin air. This is what leads to economic booms and busts. [...]
Healthy economic growth is supported by savings, rather than newly created money. People and businesses save and invest the money they don’t need to consume right away. They make loans and investments that create computer equipment, copper mines, retail stores, and new homes. These loans and investments need not be cut off suddenly by a Fed worried about rising prices, as is the case when the Fed induces business activity by simply creating money. (1)

Central banks of four Gulf countries will therefore halt their lending operations next week in line with their landmark agreement to launch the world’s second major monetary union, a Saudi newspaper reported yesterday. (2)

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Central Problem: the Central Bank
By ROBERT KLEIN AND GEORGE REISMAN
MONDAY, DECEMBER 28, 2009
http://online.barrons.com/article_email/SB126167814839704681-lMyQjAxMDI5NjIxNjYyNzY4Wj.html

(2)
Four central banks to halt lending next week   
Emirates Business 24-7, 27 December 2009
http://www.business24-7.ae/Articles/2009/12/Pages/26122009/12272009_1cb3df2c0efa4c60afd623eb25e8d69b.aspx

Today, Tuesday, the Gulf Co-operation Council is discussing whether to peg a planned unified currency to a basket, US dollar, or another single currency  (1)
 
Qatar’s ruler, Sheikh Hamad bin Khalifa Al Thani, said last week at the Gas Exporting Countries Forum meeting that natural gas prices are too low and wants them to be linked to the price of crude oil.  (2)
 
As oil is the only commodity in the world that is large enough for gold to hide in, gold is hiding in there. The GCC oil producers and exporters do indeed exchange their petro-dollars, which like the dollar itself have no value, for gold. Oil backing thus means gold backing.
 
The GCC should peg its single currency to gold.
 
It is the movement of gold in the hidden background that has kept oil and gas at these low prices.
 
Oil and gas must be billed at their correct “value” in an honest currency and this correct billing must be reflected in FreeGold.
 
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
 
NOTES
 
(1)
Gulf states aim to decide on single-currency
Dec 15, 2009 at 00:54
http://business.maktoob.com/20090000407586/Gulf_states_aim_to_decide_on_single_currency/Article.htm
SNIP
KUWAIT CITY - Gulf states will aim to decide by 2010 on whether to peg a planned unified currency to a basket, the U.S. dollar, or another single currency, Kuwait’s Finance Minister told Zawya Dow Jones in an interview.
+
Al Shimali added that the currency will be discussed Tuesday
 
(2)
Qatari emir wants gas prices tied to oil
 Associated Press
2009-12-09 05:53 PM   
http://www.etaiwannews.com/etn/news_content.php?id=1128360&lang=eng_news

http://fedex.com/ph/
Tracking no.: 869557566965

Conterganstiftung für behinderte Menschen
Herrn XXXXX
Ludwig-Erhard-Platz 1 - 3
D- 53179 Bonn
Germany   
Telefon: +49 (0) XXXXX Telefax: +49 (0) XXXXX

02. Dezember 2009

Sehr geehrter Herr XXXXX,

1.
Am 26. August 2009 fragte ich Sie durch E-Mail um Informationen über die Gerüchte, dass unerkannte Contergan-Monster jetzt anerkannt werden können. Und ich fragte : “Können Sie etwas für mich tun?” Am selben Tag, haben Sie mir durch E-Mail die neuen Bestimmungen des Contergangesetzes gegeben.

Sie sagten am 26. August 2009: “Ich stelle Ihnen anheim, einen Antrag [für Leistungen] zu stellen.”
Deutsch ist eine Fremdsprache für mich.
“Anheim stellen” bedeutet “to leave to somebody’s discretion”.
http://dict.tu-chemnitz.de/  http://www.ego4u.com/en/dictionary
Ermessen” {n}; Gutdünken {n} “discretion”
Dies bedeutet, dass es von meinem Ermessen abhängig ist, ob ich einen Antrag für Leistungen stelle..

Am 27. November 2009 schrieb Sie durch E-Mail
“mit der E-mail vom 26.08.2009 haben wir Ihnen als Anhang die Antragsformulare zugesandt.                       
Bis jetzt haben wir noch keine Unterlagen erhalten.
Wir erwarten Ihre Unterlagen zu gegebener Zeit.”

2.
In meinem Ermessen, habe ich entschieden, dass Ihre Angebot von Leistungen, die erst ab dem Zeitpunkt der Antragstellung an gezahlt werd, ohne Angebot einer Entschädigung, lächerlich und arglistig ist (und “Fraus omnia corrumpit”, (Ihr) Betrug macht alles zunichte),
weil, neben vielen anderen Gründen,
(1)    die Leistungen erst ab dem Zeitpunkt der Antragstellung an gezahlt werden,
(2)    Ihr Angebot kein Angebot einer Entschädigung beinhaltet, und
(3)    eine Antrag nach Ihrem Angebot dazu führt dass ich alle Schadensersatzansprüche, nicht nur gegen Sie, sondern auch gegen die Chemie Grünenthal GmbH, verliere.

Ich kann keinen Antrag stellen. Ihre Angebot ist lächerlich und arglistig. Meine Frage vom 26. August 2009 war: “Können Sie etwas für mich tun?” Mit Ihrem Angebot können Sie nichts für mich tun.

Ihre vorliegenden Angebot ist lächerlich und arglistig. Auf der Grundlage dieses Angebots,können Sie nicht erwarten Unterlagen von mir zu erhalten. “Fraus omnia corrumpit”, ” (Ihr) Betrug macht alles zunichte.”  Ihr Betrug besteht in der Tatsache, dass Sie fordern, dass ich einen Antrag stelle auf der Grundlage eines lächerlichen und arglistigen Angebotes.

Unter allen rechtlichen Vorbehalten, auch die Reservierungen/Vorbehalten durch Fehler aufgrund meiner unzureichenden Kenntnis der deutschen Sprache, und ohne Anerkennung einer Rechtspflicht sowie ohne Präjudiz.

Mit freundlichen Grüßen,

Yves Cerckel
Caipilan
Siquijor, Siquijor  6225
Philippinen

00 63 35 XXXXX
philmigrator@yahoo.com

German Conterganstiftung or thalidomide foundation is a fraud – UK guv’mint also
Posted by Ivo Cerckel on September 4th, 2009
http://bphouse.com/honest_money/2009/09/04/german-conterganstiftung-or-thalidomide-foundation-is-a-fraud/

Trichet does not understand what the Lisbon treaty does to the ECB’s independence nor does he understand what the EONIA is. He has confidence and trust in the Greek and US bureaucrats. The only thing he thinks to know, i.e., that Dubai is okay, is not true.

This is an update of my previous post
ECB president Trichet should resign!
Posted by Ivo Cerckel on November 7th, 2009
http://bphouse.com/honest_money/2009/11/07/ecb-president-trichet-should-resign/

At the end of the press conference after the 05 November 2009 meeting of European Central Bank governing council, leaving interest rates unchanged at 1 percent, ECB president Jean-Claude Trichet spoke at length about the European Union reform treaty, the Lisbon treaty, which was signed by the EU member states on 13 December 2007, and entered into force on 01 December 2009,
but he didn’t mention that the latter treaty transforms the ECB into an institution of the European Union, thereby repealing whatever independence the ECB had. (1)

At the press conference after the 03 December 2009 meeting of ECB governing council, leaving interest rates unchanged at 1 percent, Trichet reminded his audience that it was the 1992 Maastricht treaty which would have instituted the independence of the ECB. To that effect, the Maastricht treaty even grants legal personality to the ECB. (2)

As regards the EONIA, the Euro OverNight Index Average rate, which is an effective overnight reference rate which has been constructed so as to be computable as a weighted average of all overnight unsecured lending transactions in the interbank MARKET (3),
Trichet said on 05 November, 2009 i.e., before the entry into force of the Lisbon treaty, that it is not his intention to change the way the market is functioning. On 03 December 2009, i.e., after the entry into force of the Lisbon treaty, he said that it is not his intention to change the way he is handling the market. That’s the result of the Lisbon treaty. Before the Lisbon treaty, the EONIA should have been computed. Since the Lisbon treaty, it is clear that it is being arbitrarily decreed by the ECB bureaucrats.

How could the ECB ever have been independent, even before the entering into force of the Lisbon treaty, if the European Union commissioner of economic and monetary affairs “from time to time” also participates in the fortnightly meetings of the ECB governing council?
If he were honest, Trichet would resign, because the Lisbon treaty takes whatever independence he had away from him.

Trichet said on 05 November 2009:
Let me only say that I am very happy that we have the Treaty of Lisbon, which is now ratified by all. Europe has demonstrated a capacity to surmount an immense difficulty in very demanding times, and this is very heartening from the perspective of ONE OF THE INSTITUTIONS OF EUROPE which has had to cope with an exceptionally demanding environment over the past two years. We are heartened by the fact that we have found an appropriate way to get out of this situation. (1, again)

Contrast this to Lorenzo Bini Smaghi, member of the governing council of the ECB, who said on 24 January 2008:
The TREATY OF LISBON strengthens the ECB’s position in several ways
[...] iv) the ECB is recognised as an INSTITUTION OF THE EUROPEAN UNION, joining the Council of the European Union, the European Commission and the European Parliament, even though it has legal personality. (4)

Trichet, on Thursday 05 November 2009, didn’t say anything about the repeal of ECB independence, if any.
What’s left of the independence of the ECB, which, as Trichet reminded us on 03 December 2009, was bestowed by the 1992 Maastricht treaty upon the ECB?
What does legal personality, which was also granted by the Maastricht treaty, mean from now on?

On 03 December 2009 Trichet said
that he “trusts” the sincerity of the US of A authorities on strong dollar, both sincerity of the Secretary of the Treasury and the sincerity, “of course”, of the Chairman of the Fed,
and that he has the “confidence” that the  Greek guv’mint will take the appropriate decisions to deal with its fiscal situation.

The only thing he “knows” or rather “thinks”, he said on 03 December 2009, is that:
“As regards Dubai, I think it is an illustration of the fact that we have nervousness in the market. I do not think we should over-assess the gravity of what is happening in Dubai, but at the same time we have to consider the impact that a relatively modest event had on the market.”

Trichet didn’t say by what standards he knew that.

“Confidence will never return in Dubai”, said Jim McLean in analysis in The Times of 05 December 2009. (5)

And then came this news on Sunday, 06 December 2009:
From The Sunday Times
December 6, 2009
Banks face fresh Dubai debt fears
RBS and HSBC are among UK lenders with exposure to Dubai Holding
Jenny Davey and John Arlidge
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6945901.ece

A benchmark is anything taken or used as a standard or point of reference, says Chambers dictionary.

Saudi Aramco said on 28 October 2009 that it will now use the Argus Sour Crude Index (ASCI) marker, an index of high-sulfur oil produced in the Gulf of Mexico, to price crude for sale to US customers, instead of the West Texas Intermediate (WTI) index. This is the first month, Saudi Aramco is pricing crude against this new benchmark to US consumers. (6) And all of a sudden, crude oil prices are in “the right range” and there is no need to reduce inventories, Saudi Arabian Oil Minister Ali al-Naimi said ahead of an OPEC meeting scheduled for later this month. (7)

But for Trichet, there are no (more) standards.

Anything goes for Trichet.

Trichet should resign because the independence and legal personality of the ECB have been reduced to nothing by the Lisbon treaty. It is this reduction which led him on 03 December 2009 to think that he was entitled to arbitrarily decree the height of the EONIA, whereas the EONIA was designed to be computable from MARKET, not bureaucratic, rates. As a graduate from the French school for bureaucrats, the Ecole Nationale d’Administration, who started his career with the French tax collector and never left guv’mint employ, he is unable to understand that the Greek and US bureaucrats are just as incompetent and harmful as all bureaucrats. The only thing he thinks to know, i.e., that Dubai is okay, is not true.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Introductory statement with the Q&A
Jean-Claude Trichet, President of the ECB,
Lucas Papademos, Vice President of the ECB
Frankfurt am Main, 5 November 2009
http://www.ecb.int/press/pressconf/2009/html/is091105.en.html

(2)
Introductory statement with the Q&A
Jean-Claude Trichet, President of the ECB,
Lucas Papademos, Vice President of the ECB
Frankfurt am Main, 3 December 2009
http://www.ecb.int/press/pressconf/2009/html/is091203.en.html

(3) (a)
Eonia
From Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Eonia

(3) (b)
Paul Temperton, “The euro and the money market”, in Paul Temperton (ed.), “The Euro”, John Wiley & Sons, 1998, 2nd ed., 261, p. 266

(4)
The economic governance of the European Union in the light of the Treaty of Lisbon: harmonisation or competition between countries?
Lorenzo Bini Smaghi, Member of the Executive Board of the ECB
Speech given at the conference on:
The European Central Bank: a new actor on the international scene,
Milan, 24 January 2008
http://www.ecb.int/press/key/date/2008/html/sp080124.en.html

(5)
From The Times December 5, 2009
Confidence will never return in Dubai
Jim McLean: Analysis
http://www.timesonline.co.uk/tol/news/world/middle_east/article6945325.ece

(6)
Saudi Cuts Europe January Oil Prices; U.S. Marker New (Update1)
By Anthony DiPaola - Dec. 6 (Bloomberg)
http://www.bloombergnews.com/apps/news?pid=20601087&sid=amaYmxAQE9tU&pos=3

(7)
Saudi Arabia’s Al-Naimi Says Oil Price Is ‘Perfect’ (Update3)
Dec. 5 (Bloomberg)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aCe.c6tlfxlg&pos

separate and differentiate ad infinitum

Dubai shocked the world on Wednesday 25 November 2009 when it asked its creditors for a standstill on billions of dollars of debt issued by the Dubai World conglomerate and its property subsidiary Nakheel, builder of luxury homes on man-made, palm-shaped islands.

On Monday 30 November 2009, the Government of Dubai has refused to honour the debt obligations of Dubai World.
These debts are Islamic bonds or sukuk.

Sukuk (plural of sak) are based on the idea of making a non-permissible transaction [an interest-based transaction] permissible by introducing degrees of “separation” until eventually it becomes impossible for any jurist, however strict, to prohibit the practice as merely a trick to subvert the substance of Islamic law, the prohibition of interest based transaction. (1)

Sukuk are defined as certificates of equal value representing undivided share in ownership of tangible assets of particular projects or specific investment activity, usufruct and services. (2)
On Monday 30 November 2009, Nakheel asked for three of its listed sukuk worth $5.25 billion to be suspended from trade until it can inform the market more fully about its restructuring plans. (3)

Emirates Business 24/7 confirms this Tuesday 01 December 2009 morning that the sukuk of Nakheel are backed by real estate leasehold interests. (4)

The reason why on Monday 30 November 2009, the Government of Dubai has refused to honour the debt obligations of Dubai World is, said Abdulrahman al-Saleh, department of finance chief, that it is not correct that Dubai World is part of the government and that therefore Dubai World’s debts are not guaranteed by the emirate’s government.

Saleh’s remarks in an interview to Dubai TV, a station owned by the Ruler of Dubai, confirmed there is going to be a restructuring. This shows that [the masters of Dubai] are doing what they can to “differentiate” between the government and companies, said Mohieddine Kronfol, managing director at Algebra Capital (5)

But sukuk are already introducing a “separation” until eventually it becomes impossible for any jurist, however strict, to prohibit the practice as merely a trick to subvert the substance of Islamic law. Dubai now wants a further “differentiation”.

We thought the United Arab Emirates government had the ability to tax people or to print money to pay its bills and that there was virtually no credit risk [with sukuks]. (6)

By defaulting, Dubai has crippled itself, since this has impaired its ability to borrow further even though, as I just said, the UAE central bank could have printed UAE dirham to pay the interest on its sukuks. (7)

Dubai may have defaulted because the tangible assets underlying its sukuk are gone.
But how the heck was Dubai prepared to impair its ability to borrow further?

This anarchist cannot find an answer to the latter question and can therefore not but conclude that it has something to with the pegging of the UAE dirham to the US of A dollar. This pegging introduces the ultimate separation of the dirham from the real world.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Elisabeth Jackson-Moore, “The International Handbook of Islamic Banking and Finance”, Cranbrook, Kent: Global Professional Publishing, 2009, pp. 125 and 126

(2)
Muhammad Ayub, “Understanding Islamic finance”, John Wiley & Sons, 2007, Glossary

(3)
Nakheel asks for sukuk suspension
Nov 30, 2009 at 08:31
http://business.maktoob.com/20090000401938/Nakheel_asks_for_sukuk_suspension/Article.htm
SNIP
DUBAI – Dubai’s Nakheel, one of two flagship companies behind the emirate’s rapid growth, said on Monday it had asked for three of its listed Islamic bonds worth $5.25 billion to be suspended from trade until it can inform the market more fully about its restructuring plans.

(4)
Nakheel sukuk is backed by real estate leasehold interests
By Staff Writer on Tuesday, December 01, 2009
http://www.business24-7.ae/Articles/2009/12/Pages/30112009/12012009_ed5356960d4a444898dda269576f17b5.aspx
SNIP
Fixed income analysts said to Emirates Business that in the case of a sukuk, the Islamic version of bonds, the issue is always backed by asset. With regards to Nakheel sukuk, which is maturing within two weeks, the assets consist of the leasehold interest in all land, buildings and other property known as DWF South and Crescent Lands at Dubai Waterfront.

(5)
Dubai says not responsible for Dubai World debt
Mon Nov 30, 2009 3:33pm EST
By Rania Oteify and Tamara Walid
http://www.reuters.com/article/topNews/idUSGEE5AS0AH20091130
SNIP
DUBAI (Reuters) - The Dubai government said on Monday it wasn’t responsible for the debts of Dubai World, dealing a blow to creditors’ assumptions that the Arab emirate would guarantee the conglomerate’s liabilities.
“Creditors need to take part of the responsibility for their decision to lend to the companies,” said Abdulrahman al-Saleh, director general of Dubai’s Department of Finance. “They think Dubai World is part of the government, which is not correct.
+
Saleh’s remarks in an interview to Dubai TV, a station owned by the ruler of Dubai, came after UAE markets closed.
They have confirmed there is going to be a restructuring and are doing what they can to differentiate between the government and companies,” said Mohieddine Kronfol, managing director at Algebra Capital
+
Saleh made clear on Monday that while the government owned Dubai World, the conglomerate had long operated as a stand-alone entity and was never guaranteed by the emirate’s government
 
(6)
Harry Browne, “Fail-Safe Investing”, New York, St Martin’s press, 1999, p. 110
 
(7)
Harry Browne, “The Economic Time Bomb”, New York, St Martin’s Press, 1989, p. 41

The United Arab Emirates central bankster stands behind local and foreign banksters operating in the country. (1)
What’s the use?  The latter are involved in fractional-reserve banksterism.

The central bankster stated that the UAE banksterism system is more sound and liquid than a year ago. (1, again)
Has fractional-reserve banksterism been repealed?

The Gulf Co-operation Council has enough foreign assets [ABROAD] to tackle debt, according to two special studies. (2)
Abroad, thus not under the GCC’s control at home.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
U.A.E. Central Bank Stands Behind Lenders, Adds Funds (Update3)
By Arif Sharif, Nov. 29 (Bloomberg)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aM2MVwCsQXRY&pos=1

(2)
GCC has enough foreign assets to tackle debt
By Nadim Kawach on Monday, November 30, 2009
http://www.business24-7.ae//Articles/2009/11/Pages/29112009/11302009_04fa5d58ab1b47d9878d233c16065632.aspx

Update 1 adds the comparison to the London banksters

The British guv’mint, which needed thalidomide to justify the NHS and the rest of its welfare state, will print money to assist thalidomide-victims. Fool circle.

The whistle on thalidomide was blown at a Düsseldorf congress of neurologists on 30 April - 01 May 1960 by neurologist Dr Ralf Voss.
Guv’mint let it be marketed until 27 November 1961, that’s eighteen months later.
http://www.wdr.de/themen/gesundheit/pharmazie/contergan/chronik.jhtml?rubrikenstyle=contergan

From The Sunday Times
November 14, 2009
An end to the terrible saga of thalidomide
http://www.timesonline.co.uk/tol/comment/leading_article/article6917231.ece
SNIPS
The government appears ready to accept its responsibilities at last. Ministers are proposing a settlement worth several million pounds to compensate the remaining thalidomide victims in Britain, who number about 460
+
Words, of course, are cheap. What will concern the thalidomiders is whether the additional money is genuinely new and not merely diverted from other budgets. What will concern them most, as they head towards old age, is whether it will be enough.
UNSNIP

Guv’mint is utterly unable to do anything and it will print “genuinely new” money into existence (yes, that the bureaucrats can do) and give that to the thalidomiders.

This means debasing money and thus taxing the sheeple who have money.
May I remember my dear readers that the difference between tax and theft is that the thief does not come back periodically nor does the thief pretend to be stealing in the public interest?

How dare thalidomiders accept such “money”?

Guv’mint, all its bureaucrats and other recipients of “its” “money” should leave  the British and Irish isles and then let the market solve the thalidomiders’ problems.

But, at the end of the terrible thalidomide saga … we’re all Keynesians now,.

Are some British thalidomiders as bad as the London banksters who accept Gordon Brown’s, Alistair Darling’s, and Mervyn King’s quantitative-easing money?

The UK guv’mint must leave the British and Irish isles.

From The Sunday Times
November 15, 2009
Thalidomide drug scandal is story of pain and official (Ivo: i.e, guv’mint) neglect
Daniel Foggo
http://www.timesonline.co.uk/tol/life_and_style/health/article6917308.ece

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

The way most oil & gas is being sold by GECF and Aramco, their selling through the USA dollar, calls for a replacement. Chindia and euroland are showing the new way.

The Gas Exporting Countries Forum (GECF) was formally established in 2008.

Its members are Algeria, Bolivia, Brunei, Indonesia, Egypt, Iran, Libya, Malaysia, Nigeria, Qatar, Russia, UAE, Venezuela and Trinidad and Tobago.

Experts from the group’s members held a meeting in Doha, Qatar, on 09 and 10 November 2009, paving the way for the GECF ’s ministerial gathering in Doha on 09 December 2009, where the organisation’s secretary general will be appointed, its permanent secretariat headquarters will be inaugurated, and gas prices in international markets will be discussed. (1)

Some industry analysts have described it as the “gas OPEC.” But the way most gas is sold — through long-term contracts — limits the extent to which it can mimic OPEC’s practice of coordinating production levels among its members. (2)

The Times reported last week that Saudi Aramco was also experiencing “dollar problems” due to the way most of Aramco’s oil is sold to the USA. The Saudis don’t trade oil but historically sell it at fixed discounts to West Texas Intermediate (WTI), set in advance. With WTI bouncing around, the Saudis cannot price their oil competitively against rival sour crudes. Customers are annoyed; by the time that cargoes arrive from Arabia, WTI’s oscillations could make Saudi crude dirt cheap or horribly dear. (3)

The euro is the first currency that has not only SEVERED ITS LINK to gold, but also its link to the nation-state, said the late European Central Bank president Wim Duisenberg on 9 May 2002. (4)

Lorenzo Bini Smaghi, a board member of the same ECB, said on, 06 October 2009, that China for one needs to bite bullet. “I think the best way is that China starts adopting its own monetary policy and DETACH itself from the Fed’s policy.”  (5)

India is buying gold (6) and is selling USA T-bills to that effect. (7)

Chindia is following the euro’s example.

The USA dollar is toast.

Hence, the Gas Exporting Countries Forum and Saudi Aramco need a replacement.

Chindia and euroland are showing the way.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Leading gas producers to meet in Doha
Wed, 04 Nov 2009 07:36:17 GMT
http://www.presstv.ir/detail.aspx?id=110409§ionid=3510213

(2)
Gas exporters’ forum should mimic OPEC: Algeria
Tue Nov 10, 2009 2:47pm GMT
http://af.reuters.com/article/investingNews/idAFJOE5A90IV20091110

(3)
From The Times November 4, 2009
Saudi Aramco seeks solution to crude problem
Carl Mortished: World business briefing
http://business.timesonline.co.uk/tol/business/columnists/article6901552.ece
discussed by yours truly here:
Incoterms or dollar? Re: Saudi Aramco US sales
Posted by Ivo Cerckel on November 4th, 2009
http://bphouse.com/honest_money/2009/11/04/incoterms-or-dollar-re-saudi-aramco-us-sales/

(4)
International Charlemagne Prize of Aachen for 2002
Acceptance speech by Dr. Willem F. Duisenberg, President of the European Central Bank, Aachen, 9 May 2002
http://www.ecb.eu/press/key/date/2002/html/sp020509.en.html

(5)
China calls time on dollar hegemony
You can date the end of dollar hegemony from China’s decision last month to sell its first batch of sovereign bonds in Chinese yuan to foreigners.
By Ambrose Evans-Pritchard
Published: 7:33PM BST 06 Oct 2009
http://www.telegraph.co.uk/finance/china-business/6266790/China-calls-time-on-dollar-hegemony

(6)
India Buys IMF Gold to Boost Reserves as Dollar Drops (Update2)
By Thomas Kutty Abraham and Kim Kyoungwha
Nov. 3 (Bloomberg)
http://www.bloomberg.com/apps/news?pid=20601091&sid=aa6oc6Wz9Ftg

(7)
RBI may’ve sold US T-bills to buy gold – The Economic Times
7 Nov 2009, 0217 hrs IST, ET Bureau
http://economictimes.indiatimes.com/news/economy/finance/RBI-mayve-sold-US-T-bills-to-buy-gold/articleshow/5205038.cms

On Thursday, ECB president Trichet spoke about the EU reform treaty, the Lisbon treaty, but didn’t mention what the treaty does to the ECB .

At the European Central Bank press conference on Thursday 05 November 2009 after the meeting of its governing council leaving interest rate unchanged at 1 percent, ECB president Jean-Claude Trichet was asked:
[Does] the ECB think it would be sensible to bring the EONIA rate back in line with the main policy rate before raising interest rates?

He replied
[It] is not our intention at all at the moment to change the way the market is functioning. We are satisfied with the present functioning of the market. The EONIA is close to the deposit rate because of the way we are handling liquidity. It is not our intention to change that in the next period of time (1)

Here’s what he means by
“We are satisfied with the present functioning of the market.”:

“I urge you to knock on our door before we come knocking on yours,’’ Preet Bharara, the US attorney in Manhattan, has said.
(U.S. Attorney’s Remarks on Insider Charges
November 05. 2009
http://www.scribd.com/doc/22177326/U-S-Attorney-s-Remarks-on-Insider-Charges

It is becoming clearer why, although he said on Thursday that the ECB was an institution of EUROPE, Trichet didn’t mention that the treaty of Lisbon makes an institution of the EUROPEAN UNION of the ECB.

If he were honest, he would resign, because Lisbon takes whatever independence he had away from him.

He said:
Let me only say that I am very happy that we have the Treaty of Lisbon, which is now ratified by all. Europe has demonstrated a capacity to surmount an immense difficulty in very demanding times, and this is very heartening from the perspective of ONE OF THE INSTITUTIONS OF EUROPE which has had to cope with an exceptionally demanding environment over the past two years. We are heartened by the fact that we have found an appropriate way to get out of this situation. (1, again)

Contrast this to Lorenzo Bini Smaghi, member of the governing council of the ECB, who said on 24 January 2008:
The TREATY OF LISBON strengthens the ECB’s position in several ways
[...] iv) the ECB is recognised as an INSTITUTION OF THE EUROPEAN UNION, joining the Council of the European Union, the European Commission and the European Parliament, even though it has legal personality. (2)

Trichet, on Thursday, didn’t say anything about the repeal of ECB independence, if any .
(How could the ECB at present be independent if the EU Commissioner of Economic and Monetary Affairs “from time to time” also participates in the fortnightly meetings of the ECB governing council which sets the general policies for the ECB?)

What’s left of the independence of the ECB?

What does legal personality mean from now on?

It seems that the work is cut out for the ECB”s legal service.

“We are satisfied with the present functioning of the market.”

Yes, go away. Let the market provide money.

Trichet added on Thursday:
We will strive to continue to be up to our responsibilities and we are happy that the functioning of Europe will be functioning of Europe will be improved in the European Parliament, in the European Commission and in the European Council (1, again)

He didn’t say anything about the ECB’s independence.

ECB president Trichet didn’t mention what the Lisbon treaty does to the ECB (‘s independence.)

ECB president Trichet should resign!

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
http://www.ecb.int/press/pressconf/2009/html/is091105.en.html

(2)
The economic governance of the European Union in the light of the Treaty of Lisbon: harmonisation or competition between countries?
Lorenzo Bini Smaghi, Member of the Executive Board of the ECB
Speech given at the conference on:
The European Central Bank: a new actor on the international scene,
Milan, 24 January 2008
http://www.ecb.int/press/key/date/2008/html/sp080124.en.html

From The Times November 4, 2009
Saudi Aramco seeks solution to crude problem
Carl Mortished: World business briefing
http://business.timesonline.co.uk/tol/business/columnists/article6901552.ece
SNIPS
Saudi Aramco is worried about the price of oil, so worried that it has turned its back on a long-established benchmark — West Texas Intermediate (WTI) — used to price crude oil sold in the United States.
But it is not worried about the price so much as how it gets it. Aramco is switching from WTI, the benchmark blend of crude that is traded in the NYMEX futures exchange as US Light Sweet Crude, to ASCI, a price index of Gulf of Mexico crudes published by Argus.
Sellers always want more and Aramco is no exception. The Saudis are fed up with WTI because its price is highly volatile and the spec bears little relation to the heavy, sulphurous crude oil that they sell.
+
Aramco found itself unable to price its crude properly. The Saudis don’t trade oil but historically sell it at fixed discounts to WTI, set in advance. With WTI bouncing around, the Saudis could not price their oil competitively against rival sour crudes. Customers were annoyed; by the time that cargoes arrived from Arabia, WTI’s oscillations could make Saudi crude dirt cheap or horribly dear. Aramco’s solution is to ditch the North American benchmark.
UNSNIP

Incoterms or international commercial terms are a series of international sales terms, published by International Chamber of Commerce (ICC) and widely used in international commercial transactions. They are used to divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation practices. They closely correspond to the U.N. Convention on Contracts for the International Sale of Goods. The first version was introduced in 1936 and the present dates from 2000, says Wikipedia.

And Saudi Aramco has not been able to agree with its US counterparties on contractual terms using the Incoterms in such a way as to solve the problems resulting from the oscillations of the WTI price (in dollar)?

The problem must be either the Incoterms or the dollar.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel