Dubai Ports-Deal Fallout

[KA8NCR]

The UAE is moving its currency reserves toward the euro and away from the dollar in the face of the ports-deal gone bad in the US. They're quietly pressuring other oil exporting nations to start a transition from oil trading in dollars to oil trading in euros.

Couple THAT with China switching from a dollar-based reserves and we're in for a painful jolt. The greenback will fall drastically and if you think oil is expensive now, just wait until oil is tied to market speculation AND currency speculation. Ouch!

[kc7jty]

Quote[/b] (ka8ncr @ Mar. 12 2006,11:42)]The UAE is moving its currency reserves toward the euro and away from the dollar in the face of the ports-deal gone bad in the US. #They're quietly pressuring other oil exporting nations to start a transition from oil trading in dollars to oil trading in euros.

Couple THAT with China switching from a dollar-based reserves and we're in for a painful jolt. #The greenback will fall drastically and if you think oil is expensive now, just wait until oil is tied to market speculation AND currency speculation. #Ouch!
Put your money into real estate. When the buck drops it goes up. And load your freezer with chicken (if you like it) the bird flu is going to cause poultry prices to skyrocket.
No mas arroz con pollo para ustedes!

Future exchange rates:
Euro: $3.77
Canadian $: $17.50

[KC9EOG]

I have read that Iraqi switched their oil for food program from trading in dollars to euros, and that this was a big reason we invaded. Iran is setting up an oil market that will trade with euros instead of dollars and it is supposed to start about march 20, which is right around when Israel and the U.S. say things will get worse with Iran.

[kc7jty]

They are about to be STRONG ARMED?

[k0ro]

So China won't buy our debt as readily, demand for dollars will fall (remember, this was all in a post I made a couple weeks ago, though I was quoting other sources) and if we decide to bomb the Iran nuke facilities, good luck refueling from the Dubai air base.

If the Fed is to prop up the dollar, watch the interest rates rise and taxes rise as well (to support the increase in rates) and then you'll see a real recession.

So, is now a good time to buy gold?

And couple this with the real possibility of $130/bbl oil, not adjusted for a falling dollar...

73

[kc7jty]

The news on the front page of the local paper here is the US is spending billion$ to contain the IED problem in Iraq.
We are there to STAY. Our government has absolutely NO intention of leaving Iraq ever.
If they do to us what they did to the Rushkis in Afghanistan we're doomed.

[KF0RT]

"President Bush vowed for the first time Monday to turn over most of Iraq to newly trained Iraqi troops by the end of this year, setting a specific benchmark as he kicked off a fresh drive to reassure Americans alarmed by the recent burst of sectarian violence."

Linky. (http://www.denverpost.com/nationworld/ci_3599226)

Heck, I was just reading about how things are rosy and we might be done soon....

73, Rob

[kc7jty]

Good gravy Rob. Surely you are old enough to remember "Vietnamization". I wouldn't believe a single thing that comes out of the sh*t talker's (search it for the movie version) mouth.
I'm to the point now where I will believe the exact opposite of everything that useless goof says, and oppose him on all things great & small.

The gvt needs major military bases in Iraq. We will NEVER leave peacefully.

[K0RGR]

The UAE moving their money into Euros is very similar to the nightmare scenario of a novel I read years ago, that was written by a knowledgable financial consultant. The result of a similar action by the Saudis, in this novel, was a global depression. Simply put, our corporations depend on that money in our banks to provide operating capital. Moving their money from U.S. banks to European banks deprives us of working capital.

I hope the effects of this are not as harsh. It's another real important reason we need a full-scale 'Manhattan Project' to eliminate the use of foreign oil.