Why is virtually no significant media outlet covering what is possibly one of the biggest stories of the decade?

Did you hear this?

There was a brief mention of Russia, China and Saudi Arabia discussing dumping the US dollar as the currency the value oil is pegged to.

Here's the entry from NPR:

"-- The Independent -- Arab States, China, Russia, Japan And France Are Discussing Not Using Dollar For Oil Trading: "In the most profound financial change in recent Middle East history, Gulf Arabs are planning -- along with China, Russia, Japan and France -- to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar. ... The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years."

It was just a rumor and the reputed participants denied the rumor.

At first.

But in the article I show the first link to at the bottom of this entry, supposedly this conversation did, in fact, go on by OPEC members and it was broadcast, to the shock of reporters.

And it was November, 2007.

So this is the 2nd time this has been publicly considered, apparently.

If this should go forward, folks, the change for us in the US would be extremely far-reaching, in all likelihood.

Here's the way The Independent described it:

"In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading."

"The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China's extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states."

I don't think the American public is paying attention, either, or knows this kind of thing might be being considered and what it might possibly mean to the nation--and themselves.

It wuold likely knock America down, financially--and considerably.

Pay attention, people.

We'd better be watching what's going on in the rest of the world.

Finally.


Link:
http://tpzoo.wordpress.com/2007/11/19/opec-leaders-debate-ditching-the-dollar-during-private-talks-which-were-mistakenly-televised-to-reporters/
http://www.npr.org/blogs/thetwo-way/2009/10/afghanistan_pakistan_mcchrysta.html

This is the most complete and important article to read, of these three:
http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

Then again, Mish Sedlock thinks it's balderdash:
http://globaleconomicanalysis.blogspot.com/2009/10/ridiculous-hype-over-secret-oil.html

Remember my oil "buy" recommendation?

I wrote on March 23 that we should have bought oil (and Halliburton) stocks BIG TIME if we were cynical and greedy, at the beginning of the George W. Bush administration, in 2000.

Of course I was right. (not assuming I always am, to be sure).

Well, here we are--an article in The New York Times today, saying that there are rising fears of an oil shock, since oil companies have reduced the number of refineries they have, due to the collapse in the price of oil.

You wouldn't think the oil companies would have reacted that far-reaching in this little bit of time but don't forget, it benefits the oil companies--all of them, world-wide--to reduce capacity as much as they can, again and again, over time. The less they can refine, boys and girls, the higher a price per barrel they can get for their precious commodity.

For stability in the United States and for the safety of both our residents, our homes and businesses, we should nationalize the oil companies and as soon as possible.

We never will, mind you. I know that.

As I've written before, we worship profit and profits and wealthy people and big wealth far too much to do what's right for the country.

We should nationalize Big Oil because they're going to do what's right for them--which is reduce capability and wring all they can out of a barrel of oil, in terms of price--and that goes in the face of what is right and good and sustainable for the country.

Screwing us is good business for Big Oil.

Buy oil stocks, folks.

It'll be good for you and your pocketbook, just not the country.


Link to original article here:
http://www.nytimes.com/2009/03/27/business/energy-environment/27oil.html?th&emc=th

It's a small window, and it's closing

We've all watched the price for gasoline--both the price per gallon and per barrel, on the world markets.

We know it's gone from too high to ridiculous. The ridiculous part was when it hit $147.00 per barrel on those world markets, due mostly to speculation and people successfully, unfortunately, making a killing in the market.

Well, it fell to a bit less than $35.00 per barrel at one point and now it's back up to around $43.00 per barrel.

I have said several times that I should have--heck, we all should have--been very sarcastic, cynical and opportunistic back in 2000, when "W" and his cabal were about to take over, and invested heavily in oil and Halliburton stocks.

It only made sense.

We would have made a TON of money.

Of course, it would have been on the backs of the American people and the world but then we could have done some good with it.

So anyway, now, here we are, back in about the same situation.

If and when the world economy turns back around and people sense a "bottom" to the markets and economies start coming back, you can be sure people will start speculating--and speculating wildly--on oil, the price of oil and the oil markets.

There are a whole lotta' people out there who would like to make at least some of the money back that they've lost in these last months.

And that's where our government's plan to add $1.00 in tax or fee or whatever you want to call it comes in.

This should happen and it should happen now. It should happen right away.

It won't but it should.

This $1.00 per gallon could, would and should, then, be put to use getting us freer from Middle East oil. Parts of it could and again, would be given back to the American consumer but the rest would be used to get us onto renewable energy sources and so, again, out of the Middle East.

This would also, as I've written before, help clean up our environment, since it would be based on clean fuel and would help reduce the carbon dioxide being fed into our atmosphere so less climate change, God willing.


This, then, is what should happen, in a smart world--a perfect world.

It won't, though.

Not in a million years.

We haven't got the political fortitude to do it.

We haven't got the guts.

The politicians haven't got the guts.

In the first place, they'd all say it would just keep us in a recession--or worse. And actually, I'll admit, given that we're in financial and economic territory we've never been in before, it may even be true. (It shouldn't be, however, because of the returning of a good protion of the $1.00 per gallon to American consumers).

So the price of oil was outrageously high.

It came down.

And now it's creeping back up.

If and when the economy comes back, hold onto your hats.

It's gonna get ugly.

And expensive.

On a brighter note, if/when you see the bottom of the market, this time, buy lots and lots of oil stocks.