U.S. Debt Holders Looking to Abandon Dollar As Reserve Currency

Thanks to 'counterspin' at Open Left for posting this.

A number of countries, many if not most of them holders of U.S. debt, are seeking to create a "basket" of reserve currencies, thus severely weakening the U.S. dollar by taking away its status as the world sole reserve currency. The Independent reports:

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.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

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.

Max Keiser, a former stockbroker and now activist, weighed in on the move on with RT

Robert Fisk, who also reported on this story, had some things to say.

Those doubting the credibility of this news story may do well to consider Robert Reich's article in The American Prospect a couple of years ago, back when the Second Great Depression began. Both foreign countries and American corporations have been unlinking their economies from the U.S. dollar, hoping to lessen the inevitable damage to themselves when they finally tell us, "buh-bye, and by the way, we want our money bitches!" That day is coming sooner than we care to think, and when it happens, be prepared for the worst.