KUWAIT FORCED TO END LINK WITH U.S. DOLLAR
May 21st, 2007Via: Telegraph:
Kuwait has surrendered to speculators by breaking the tie with the dollar in a move that has dismayed Arab oil producers and will have a knock-on effect in currency markets today.
The Gulf oil state said it had been forced to end the link and tie the dinar to a basket of currencies which will include sterling because of the long-running dollar slide and the increase in the rate of domestic inflation.
Sheikh Salem Abdul-Aziz al-Sabah, governor of the central bank, said the step was part of the bank’s efforts to curb inflationary pressure.
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Kuwait’s decision took other Gulf states by surprise and raised further question marks over plans for monetary union in the region, although the governor insisted the state remained committed to the concept. Currency markets in the Gulf almost ground to a halt as dealers attempted to assess the impact of the move and the effect on international markets.
Related: I’m Nibbling at Some Gold in Here
A “Federal Reserve Note†is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.
So you keep saying, David. Unfortunately, a glance at fluctuating price of gold (Monex, etc), listed in “dollars”, proves this is simply not so.
Besides, everyone knows that the monetary unit of the United States is now the Bonar –
bonar : n. 1. a debt instrument backed by the full faith and credit of the latest corrupt US political regime; 2. a share in USA, Inc., a technically bankrupt Enronesque nation whose monetary institutions have been alternately managed by crooks and fools; 3. the currency issued by the United States of America, formerly know as the US dollar. See “US dollar.”
http://www.itulip.com/glossary.htm#Bonar