"According to well-placed sources in Saudi Arabia, there have been secret meetings in recent months between the major Arab oil producers, including Saudi Arabia, and reportedly also Russia, with the leading
oil consumer countries including two of the three largest oil import
countries―China and Japan. Their project is to quietly create the basis to end a 65-year long “iron rule” of selling oil only in US dollars. That would be catastrophic for the dollar role. "
For months the US Government has insisted that the worst of the “recession” is nearing an end and that “green shoots” of recovery are at hand. The reality is opposite. The financial crisis that began in August 2007 in the small “sub-prime” or high-risk segment of the $20 trillion mortgage debt market is now spreading, lawfully, to the “prime” or high-quality segment. The economy of the world’s sole Superpower is coming to resemble more than of the Roman Empire in the fourth Century as it collapsed into anarchy, debt and chaos.
Nations of the world are taking steps to move away from dollar dependency. China, Russia, Brazil, Kazakhstan are calling for a new reserve currency. China is quietly making bilateral currency swap agreements with Asian trade partners as well as Latin American and former Soviet Union countries. The major trade currency of the China-ASEAN Free Trade Area will not likely be the dollar. In Latin America the ALBA countries are switching to sucre as a trade currency instead of dollar starting from January 2010. MERCOSUR is going to refuse dollar in foreign trade in 2011.
The worst is yet to come for the world reserve currency.
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