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“The Gulf monetary union pact has come into effect”

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posted on Dec, 15 2009 @ 06:26 PM
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OK here we go, another regional mega-currency...the ink is all but dry on the deal here folks, they are locked and loaded.

Saudi Arabia, Kuwait, Bahrain, and Qatar will start next year, with others to join "the Gulfo" (yes, that's the name they actually picked) later.

What was that nasty thumping sound? Oh, just the dollar's global reserve currency status just being taken down another peg or two. Pay no attention...we should be quite used to it by now.




The Arab states of the Gulf region have agreed to launch a single currency modelled on the euro, hoping to blaze a trail towards a pan-Arab monetary union swelling to the ancient borders of the Ummayad Caliphate.

“The Gulf monetary union pact has come into effect,” said Kuwait’s finance minister, Mustafa al-Shamali, speaking at a Gulf Co-operation Council (GCC) summit in Kuwait.
The move will give the hyper-rich club of oil exporters a petro-currency of their own, greatly increasing their influence in the global exchange and capital markets and potentially displacing the US dollar as the pricing currency for oil contracts. Between them they amount to regional superpower with a GDP of $1.2 trillion (£739bn), some 40pc of the world’s proven oil reserves, and financial clout equal to that of China.



More at source
www.telegraph.co.uk...




posted on Dec, 15 2009 @ 06:43 PM
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I wonder why the 2010 launch of the Gulf States (Gulf Co-opm Counsil)
'Gold Dinar' did not come to fruition??
Perhaps these Arab nations are going to divest themselves of USDs
as quick as they can - example: the AbuDahbi 'rescue' of DubaiWorld's
debts of $10bn using their stash of USD instead of other currencies
they had in their repositories/vaults


check out ATS archives for the Arab (GCC) GoldDinar & its expected arrival (approved by the USA) scheduled for a 2010 issue date..


in any case, the downfall of the USD appears certain...

but its downfall may be much later than 2010 as is being implied



posted on Dec, 15 2009 @ 07:10 PM
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reply to post by St Udio
 


I'm not sure of the details behind the gold dinar. Perhaps it had something to do with the gold market...fiat currency is more manipulatable than gold-backed currency. The Gold Dinar also has more purely religious connotations than the "Gulfo," which is a pure finance move. If you check the link, it appears this is a much more solid reality coming down the pike, and less speculative. They are also more upfront and outspoken about the goal of replacing the dollar as the currency for global petro-transactions.

There has been talk of an Islamic Dinar for years..I remember reading such stuff back in 2003 or earlier...but the "Gulfo" seems much more stable entity put together with finesse and more certain to emerge in a very short time.

[edit on 12/15/09 by silent thunder]



posted on Dec, 15 2009 @ 07:26 PM
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I don't know if you heard this morning, but on CNBC they reported that China has stopped buying US treasuries. I think that they game is coming into being and that the dollar is about to be a dead currency.



posted on Dec, 15 2009 @ 07:36 PM
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Not to belittle the actual gravity of the situation, but I personally find it quite hilarious that ANYBODY would choose to name their currency "The Gulfo"!!

It's like the sound you hear when...nevermind.

I'm normally very "non-smiley", however in this case,


edit to add:
(that's what she said)

[edit on 15-12-2009 by tjack]



posted on Dec, 15 2009 @ 08:06 PM
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the world reserve currency in the early 1900's was the GBP, it took about ten years to swing over to the USD. The Gulfo, may become the new reserve currency, but there will still be dollars and it will take some time for the USD to be supplanted.



posted on Dec, 16 2009 @ 04:30 PM
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No surprises here. The creation of a new Gulf currency was affirmed at the last GCC summit in Dec 08. Whether or not Gold will play a supporting role in this currency has always been a matter of speculation...not fact...and yet to be determined.

I believe "Gulfo" is the popular lexicon.


New GCC single currency agreed, will it include gold?

Golden opportunity

GCC assistant secretary-general Mohammad Al Mazroui told Gulf News: ‘We first have to decide on the location of the Central Bank, then the Central Bank and Monetary Council will have to decide on the gold reserves for the Central Bank’.

The creation of the GCC single currency – likely to be known as the Khaleeji which means Gulf in Arabic – is a major gold event for two reasons.

Full Text


Arab OPEC recycles a large % of their petro-dollars into US treasuries in exchange for US military presence (protection) in the Gulf region , so I find this statement from the OP to be most relevant....


The GCC also agreed to create a joint military strike force – akin to the EU’s rapid reaction force – to tackle threats such as the incursion of Yemeni Shiite rebels into Saudi territory earlier this year.




[edit on 16-12-2009 by OBE1]



posted on Dec, 16 2009 @ 04:54 PM
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Rumblings about this sort of thing have been going on for a while.

Anybody who was paying attention could see it coming: Gulf Arabs Could Drop Dollar Pegs in Unison (Update 1)(UPDATE 2)

also: OPEC to Study Currency Basket for Pricing

There is also an Asian regional currency in the works along with a central bank for Central and South America. Brazil To Join "Bank of the South"

Everybody has been distancing themselves from the USD for several years now.
.



posted on Dec, 16 2009 @ 11:49 PM
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This is pretty interesting.

But I guess if I had $10,000,000,000 laying around I prob. would not end up putting it in "gulfos". Instability in the region etc..

[edit on 16-12-2009 by GreenBicMan]



posted on Dec, 17 2009 @ 01:34 AM
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I have been following this now for awhile, can't believe it's all official now. It will be interesting to see how many other nations try this out. South America is also supposed to be doing the same thing.

Gulf States to Launch Single Currency

The hyper-rich club of oil exporters: Saudi Arabia, Kuwait, Bahrain and Qatar, all Arab states of the Gulf region that own almost 40% of the world’s total oil reserves and possess a combined GDP of $1.2 trillion, have agreed to launch a single currency modeled on the euro, hoping to displace the greenback as the pricing currency for oil.


If they do manage to trade oil in this new currency, we can kiss USD hegemony goodbye. Here's what I see happening down the road.

1)No more foriegn countries and corporations keeping all of their reserves in USD and treasuries.
2)Less money avaliable to finance budget debt.
3)More money printing by fed, monetizing the debt.
4)Inflation.
5)Repeat 3 and 4.
6)Repeat 5 infinately.



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