Saudis Ready to Drop Peg

[Linkster]

Rumor has been floating for some time - and people were watching to see if the Saudis would follow the interest rate cut in the US - which they have every other time it has changed - and they didnt do it this time - indicating they are ready to change to the Euro as they had warned, and drop their US investments. With the dollar hitting another record today(finally achieved parity with the Cdn $), and oil hitting its record today - some are predicting it will be any day.
Can you say financial disaster for the US in one fell swoop. Of course the idiots on the financial shows are all praising how well our markets are doing and completly ignoring reality

[disrupter]

The dollar is already dropping pretty steeply.

The Saudis could strike it a real hammer blow.

This really does affect & worry me.
As an individual, jumping around between currencies, money & assets is a very high threshold, finding brokers, paying steep fees . . . .
Trying to second guess global leader actions & market responses is near impossible.

Throw caution to the wind & hope it doesn't come back to haunt me?
Who knows?

Maybe the aliens will land & want my dollars for a flying saucer?
ooohhh, i LIKE that idea, lol.
keep & preserve that fantasy.

If others can believe in peterpan religious heavens i can believe the aliens will rescue me. :taunt:

[Linkster]

Saw this yesterday and was quite interested as the last time they tried (remember the US ports they wanted to buy?) - they wre rebuffed

The deal gives Borse Dubai 19.99 percent of US-based Nasdaq and 28 percent of the London Stock Exchange

[Moby]

Why do you think Haliburton is moving to Dubai?

Dubya sold out three companies to the folks over there. Why do people believe that this time he won't?

[Linkster]

Haliburton had to move out of the US - they were already under investigation and with their prior CEO and board members being in the white house that would not have looked good at all - it also nullifies all contract irregularities that were already decided and fines assessed - but they ended up not having to pay because of the move.

[moonman]

It's like I been reproting here. the issue of the credit crunch is a symptom. A serious symptom but symptom nonetheless.

The issue is and has always been the collapsing USD. That the Saudi's may be abandonning the USD is just more evidence the world is losing faith in the the "full faith and credit of the USA."

The good news, to the extent there is good news is that we represent 30% of all trade on this planet. That means 30% of all international trade is done with us. Saudi's Kuwaiti's and the Chinese who are reprotedly reducing their exposure and holdings of USD and USD denominated debt instruments WILL NOT reduce their holdings much below what is needed to conduct trade with us.

While our dollar won't be actually worthless it will, as be worth much less than it is today as we move forward. Need someone to blame? Look in the mirror. Since post WWll we have consistantly elected gubments who promoted deficit financing and now the bill is due.