Thread: Traitor Greenspan Urges Gulf States To Abandon Dollar

Traitor Greenspan Urges Gulf States To Abandon Dollar.


Paul Joseph Watson
Prison Planet
Tuesday, February 26th, 2008

Alan Greenspan has again exposed himself as a traitor working against the interests of the American people by urging Gulf states to abandon the dollar peg, a move that could result in financial chaos and an economic depression in America.

The dollar peg mandates Gulf nations to price their assets in U.S. dollars and follow U.S. monetary policy at a time when the Fed is cutting interest rates, a system that has produced a boom in oil revenues but led to high inflation as the dollar weakens.

"It [de-pegging] is probably the most useful thing that can be done to stop the increasing influence of foreign assets on the monetary system and therefore the monetary base which is basically the major force in inflationary pressures," Greenspan told the Abu Dhabi Corporate Leadership Forum yesterday.

"In the short term free floating … will not fully dissipate inflationary pressure, although it would significantly do so," added Greenspan, giving a green light for Gulf states to drop the dollar peg.

According to Economist editor Pam Woodall, Greenspan’s comments heralded the beginning of the end for the US dollar as the currency of choice for foreign exchange reserves.

"If Asian central banks hold today more than 80 per cent of the global foreign exchange reserves, which indicates the shift of the global economy domination towards Asia, it seems quite awkward that the UAE still maintains the peg of its currency to the US dollar," she told Gulf News.

Greenspan’s zeal to destroy the dollar is evident in numerous public statements he has made predicting the replacement of the dollar with the Euro as the world reserve currency.

The former Fed chairman has repeatedly badmouthed the dollar and hyped the inevitability of economic chaos at a time when market confidence is in the toilet. Greenspan’s rhetoric matches that of the IMF, who in October of last year bizarrely slammed the dollar as "overvalued" at the same time the greenback hit its all time low against the Euro.

A decision on behalf of the Gulf states to abandon the dollar peg would have disastrous consequences for the greenback and the American economy.

Such a move could lead the likes of the United Arab Emirates and Saudi Arabia to diversify their foreign exchange holdings out of dollars. This would amount to a vote of "no confidence" in the dollar and may cause other countries with large dollar reserves, such as China and Japan, to follow suit and begin dumping the greenback en masse.

China has threatened repeatedly to use the "nuclear option" and liquidate its vast holding of US treasuries in response to continued pressure on the Communist state to force a yuan revaluation. According to a widely-read London Telegraph report, such an event "could trigger a dollar crash" and also "cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession."

Runaway inflation would also ensue, making the cost of living unaffordable to even middle class Americans as food prices skyrocket and international aid organizations like the World Food Programme predict rationing and food riots.

The dollar has held firm against the Euro and recovered some losses against Sterling over the past two months, but it has still lost 12 per cent of its value against the trade-weighted index over the last two years and has plunged by a whopping 60 per cent against the Euro since Bush entered the White House.

http://www.infowars.com/?p=464

Come on, he's a older guy, maybe he has just mentally slipped.

Dixie

The likely effect of an increase in foreign currency against the dollar are higher prices for our imports and higher employment in the American manufacturing sector as we consume more domestic goods and export more. This is not neccessarily a bad thing to happen for us, Mexico would likely benefit as well.

Is there a more reliable source for this than Alex Jones hyperbolic website?

Is there a more reliable source for this than Alex Jones' hyperbolic website?

http://www.gulfnews.com/business/Economy/10192824.html

Business

Economy


Reuters file
In the short term free floating ... will not fully dissipate inflationary pressure, although it would significantly do so, says Alan Greenspan, Former Chairman of Federal Reserve.



Former Fed chief Alan Greenspan says dollar peg 'needs to go'
By Ahmed A. Elewa, Senior Reporter
Published: February 25, 2008, 23:40


Abu Dhabi Floating the Gulf currencies is the best means to relieving the region's rising inflationary pressures, former Federal Reserve Chairman Alan Greenspan said in Abu Dhabi on Monday.

The dollar peg forces the Gulf states to follow US monetary policy at a time when the Fed is cutting rates to ward off recession and Gulf economies are experiencing an unprecedented boom from oil revenues.

"It [de-pegging] is probably the most useful thing that can be done to stop the increasing influence of foreign assets on the monetary system and therefore the monetary base which is basically the major force in inflationary pressures," Greenspan told the Abu Dhabi Corporate Leadership Forum.



Arab economies have been reeling under rising inflationary pressure. In Saudi Arabia, where inflation was virtually zero for a decade, it recently reached an official level of 6.5 per cent.

According to the New York Times, the oil price boom is fuelling an extraordinary rise in the cost of food and other basic goods that is squeezing this region's middle class.

"Inflation has many causes, from rising global demand for commodities to the monetary constraints of currencies pegged to the weakening American dollar. But one cause is the skyrocketing price of oil itself. It is helping push many ordinary people towards poverty even as it stimulates a new surge of economic growth in the Glf," the report said.

At a conference in Jeddah yesterday Greenspan said: "In the short term free floating ... will not fully dissipate inflationary pressure, although it would significantly do so."

A number of participants in the Abu Dhabi Corporate leadership forum agreed with Greenspan. Pam Woodall, Asia Econ-omics Editor at The Economist, said that this is the beginning of the end for the US dollar as the currency of choice for foreign exchange reserves.

"If Asian central banks hold today more than 80 per cent of the global foreign exchange reserves, which indicates the shift of the global economy domination towards Asia, it seems quite awkward that the UAE still maintains the peg of its currency to the US dollar," she told Gulf News.

Meanwhile, Shaikh Hamad Bin Jasem Bin Jabr Al Thani, Qatar's Prime Minister, told Reuters that the exchange rate contributes about 40 per cent to inflation in Qatar, where the riyal is 30 per cent undervalued. "We prefer always to act with all the GCC countries. It's now time for the Gulf to have its own currency," Shaikh Hamad said.