Real conservatism for SAMA
Posted by Ivo Cerckel on August 31st, 2009
reversion to status-quo before 15 August 1971
The Custodian of the Two Holy Mosques, King Abdullah bin Abdelaziz Al Saud, King of the Kingdom of Saudi Arabia, on Sunday 30 August 2009, appointed Dr Abdulrahman al-Humaidi as new Deputy Governor of the Saudi Arabian Monetary Agency (SAMA), the Central Bank of the Kingdom of Saudi Arabia. (1)
We are told that there should not be any change as far as SAMA’s policies are concerned. It is the Governor, Dr. Muhammad Bin Sulaiman Bin Muhammad Al-Jasser, who takes all the decisions at SAMA. (1, again)
It is however not because the SAMA Governor continues to take the decisions that His new Deputy be prevented from suggesting real solutions to 36 years old oil crisis.
SAMA to keep current “conservative” monetary policy, says the Al Watan daily. (2)
And do we have to understand that
“conservatism” was inaugurated on 15 August 1971
when US president Nixon broke the Bretton Woods agreements
which linked the US dollar to gold at fixed parity
and all other currencies to the said dollar?
What if SAMA reverted to the conservative status quo ante,
the status-quo before 15 August 1971?
It was the breaking of that status quo that led in 1973, that is 36 years ago, to the first oil crisis.
We are still suffering from this breach of the “conservatism” which existed before 15 August 1971.
Wouldn’t a really-conservative monetary policy return to that status quo ante?
What about fighting for oil pricing in FreeGold”
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
NOTES
(1)
Saudi king appoints central bank deputy head
Aug 30, 2009 at 17:25
http://business.maktoob.com/20090000369298/Saudi_king_appoints_central_bank_deputy_head/Article.htm
SNIP
Saudi Arabia’s King Abdullah has appointed Abdulrahman al-Humaidi as deputy governor of the kingdom’s central bank, the official news agency SPA reported on Sunday.
The appointment should not lead to any policy changes at the central bank, known as the Saudi Arabian Monetary Agency (SAMA), analysts say.
(2)
Saudi to leave monetary policy unchanged
Aug 31, 2009 at 13:46
http://business.maktoob.com/20090000369446/Saudi_to_leave_monetary_policy_unchanged/Article.htm
SNIP
Saudi Arabian Monetary Agency (SAMA), will keep its current “conservative monetary policy”, Al Watan daily reported on Monday, citing SAMA’s newly appointed deputy governor Abdulrahman al-Humaidi.
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