1.The Gulf oil powers are preparing to launch a single currency modeled on the euro. Saudi Arabia, Kuwait, Bahrain and Qatar are set to start next year on their new Gulf currency. These four nations (total GDP of $1.2 trillion) are set to start trading with each other with their new currency. And it looks as though they will establish a new competitive central bank.
2.China has already announced that it will shortly make its yuan convertible. But more than that, China has established arrangements to use the yuan with some of its main trading partners including nations in Asia and South America. Their business will not be done in dollars, it will be done with Chinese yuans.
3.China has become the world's leading producer of gold. China has been urging its population to build up their personal holdings of gold. The Chinese government is no exception. China has been switching its longer-term Treasuries to T-bills, and moreover, China is adding an increasing amount of gold to its reserves.
4.Russia is not to be left out of the revolt against the US dollar. Russia is setting up its own commodity exchange to compete with the Chicago Board of Trade (CBOT), and the NYBOT (New York Board of Trade). And the currency that Russia will use will not be the Yankee Dollar, it may be the ruble or some other currency.
COMMENT: The world no longer trusts the US dollar, and various major powers are making plans to do business in currencies other than the dollar.
5.Do not argue with an idiot. He will drag you down to his level and beat you with experience. - Unknown
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