GREENSPAN TO ARAB STATES: DROP U.S. DOLLAR
February 27th, 2008Via: Reuters:
Former Federal Reserve Chairman Alan Greenspan said on Monday near-record Gulf Arab inflation would fall “significantly” were the oil producers to drop their dollar pegs, in contradiction to Saudi policy.
The pegs restrict the Gulf’s ability to fight inflation by forcing them to shadow U.S. monetary policy at a time when the Fed is cutting rates to ward off recession and Gulf economies are surging on a near five-fold jump in oil prices since 2002.
Rifts are growing across the world’s top oil-exporting region on how to tackle inflation which hit a 27-year peak of 7 percent in Saudi Arabia in January and a 19-year peak of 9.3 percent in the United Arab Emirates in 2006, the most recent figure.
“In the short term free floating … will not fully dissipate inflationary pressure, although it would significantly do so,” Greenspan told an investment conference in Jeddah, Saudi Arabia’s second-largest city.
Saudi and UAE central bank chiefs spoke in favor on Monday of retaining dollar pegs, while Qatar’s prime minister advocated regional currency reform to avert possible unilateral revaluations designed to curb inflation.
“The economies of the Gulf and the United States are completely out of sync and that is exposing the shortcomings of the dollar peg,” said Simon Williams, Middle East economist at HSBC Holdings Plc in Dubai.
“Against a backdrop of inflation, high oil prices and low interest rates the debate over currency reform has to take on greater urgency,” he said.
Related: Greenspan Joins Hedge Fund that Made Billions Shorting Subprime Derivitives
If the fundies had a clue, they’d finger Greenspan as the Antichrist.
You can bet G’s billions are parked in PMs by now.
Pookie,
Yes, I guess when you have a bullhorn (why the world listens to this ahole I have no clue) it doesn’t matter what you say into it. Amazing that no one has asked this guy to put the damn horn down already. Obviously that isn’t going to happen. The guy has created some aura around himself that he is some magic do gooder – when I agree – he is actually some kind ofSATAN.
G – my gawd. It is obvious from this statement that his antidepressant drugs are NOT working!
That said – what are PM’s?
I read somewhere long ago that G had a home abroad and had his money in treasuries (but he’d have to be really on bad drugs to put his money there now). His wife is Andrea Mitchell, a US TV news anchor, who has the appearance of a “skeletore” – (a term coined by a friend for those who look Anorexic, dehydrated, full of toxins).
Why doesn’t Greenspan just stab the US a few more times with his fairy tale bullshit?
Yes, the dollar has been so Flushed. Hey thanks Alan, I love your support of us who base our lives on the US currency.
Shriek.
That’s me just blowing off anger.
E
Had to get a look at this “skeletore”.
Spot on description… http://www.harrywalker.com/speakers_template.cfm?Spea_ID=165
Eileen, PMs are precious metals.
“Gold and Economic Freedom,” an essay by a much younger Alan Greenspan:
http://www.financialsense.com/metals/greenspan1966.html
Pookie –
PM= precious metals. My DUH!
Read the Greenspan article. Yes, indeed I’ll bet he sleeps with his gold under his mattress.
What a two faced B*st*rd.
“This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”