THE INTERNATIONAL FORECASTER editor Bob Chapman writes: In a move that would have massive repercussions in the global balance of power, last week Russian President Vladimir Putin said Russia could switch its trade in oil from US dollars to euros.
Mind you, the comments were made at a joint news conference with German Chancellor Gerhard Schroeder in Yekaterinburg, where the two leaders conducted two-day talks.
We believe this is the beginning of a move by European elitists to replace the US dollar as the world’s reserve currency.
A Russian move in this direction would boost the euros gradually growing share of global currency reserves and could prove to be catastrophic for the US … it would end the US license to do as it pleases throughout the world.
Seventy percent of US dollars are currently held as reserves in central banks through the world. This is an interest free loan to the US and it allows the US to control inflation. If other oil producers followed Russia’s lead and did switch to the euro, the US would have serious problems.
- There are already a number of countries within OPEC that would prefer to trade in euros due to US economic policies and its arrogant misuse of power based in part on the US dollar’s reserve status.
Iran, Saudi Arabia and Venezuela have considered a change … the Saudi’s relationship with Europe and Russia has already changed over the past few years. George and the neocons invasion of Iraq, an exercise in raw power, have begun further moves away from the US dollar and a closer relationship with Europe.
The trial balloons are going up … the waters are being tested … the move away from the dollar has begun.
European elitists are about to flex their muscles, and in years to come, if the change occurs, George W. Bush will be remembered in history as the cause of America losing its place as economic leader of the world.
Russia is probably bargaining for concessions, but be as it may; the whole future of the US rests on whether the dollar continues to be used for the purchase of oil.