Monday, March 13, 2006

Arab Central Banks Move Assets Out of the Dollar



From the article in The Independent found here:
http://news.independent.co.uk/business/news/article351127.ece

Excerpts:

Middle Eastern anger over the decision by the US to block a Dubai company from buying five of its ports hit the dollar yesterday as a number of central banks said they were considering switching reserves into euros.

The United Arab Emirates, which includes Dubai, said it was looking to move one-tenth of its dollar reserves into euros, while the governor of the Saudi Arabian central bank condemned the US move as "discrimination"...

...The governor of the UAE central bank, Sultan Nasser al-Suweidi, said the bank was looking to convert 10 per cent of its reserves, which stand at $23bn (£13.5bn), from dollars to euros. "They are contravening their own principles," he said. "Investors are going to take this into consideration [and] will look at investment opportunities through new binoculars."

So the arabs are getting pretty pissed that all these crappy ass depreciating fiat dollars that we are printing as if there is no tomorrow (which there won't be when the dollar crashes) suddenly won't buy anything of value like Ports, Unocal, etc. Since we have off-shored all of our manufacturing who wants to buy a bunch of service companies providing services to a bunch of dumb-ass Americans who don't even realize their country is dead broke and about to get a rude awakening when the world quits accepting their crappy-ass depreciating fiat paper dollars.

Get ready for a dollar in free-fall and remember who warned you first... Etienne