IMF to Saudis: Drop Dollar Peg - Prepare For Crash

[Mrs. Sharon B. Hodge]

OPEC nations wanted to drop the petro dollar peg for a long while now, spearheaded by OPEC members Iran and Venezuela (why we are attacking them, and why we destroyed Iraq) Now the very nation that helped US pegged the dollar as the international currency of petroleum is being told by the New World Order banking cartel IMF to drop the dollar

WHAT DO YOU THINK THAT WILL BRING TO YOUR DINNER TABLE!

Get ready to tighten your belts Americans, US dollar will be worth the paper you wipe your butts with, and prepare for the September 30 fiscal adjustments - you are all in SERIOUS danger of losing your pants if you have not prepared yourselves despite all the serious warnings





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OPEC Considers Dropping Dollar - Nov 17, 2007


06/18/08 Iran president Ahmadinejad Says Skyrocketing Oil Prices Inflated And Deliberate - At a meeting of the Opec export countries in Isfahan on Tuesday, President Mahmoud Ahmadinejad declared that the record high prices for oil is fake and deliberate, that the oil market supplies are plentiful and blamed the weakening of the US dollar for the skyrocketing prices.The US and other consumers want producers to boost their output but Iran which is the fourth largest exporter in the world, More.. has said it sees no need and suggested that a bank of Opec members be created to act as a counterweight to US influence in the world


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Saudi Should Drop Dollar Peg If Gulf Currency Delayed, IMF Says
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By Matthew Brown

Aug. 12 (Bloomberg) -- Saudi Arabia should drop the riyal's peg to the dollar and consider ....alternative exchange rate regimes'' if inflation persists and the Gulf single currency is delayed, the International Monetary Fund said

For the moment, most IMF directors say the advantages of the peg outweigh the disadvantage of temporarily higher inflation, the IMF said in a report published on its Web site today.
Still, some recommended reviewing the peg immediately

Inflation in Saudi Arabia accelerated to above 10 percent in April, after averaging less than 1 percent between 2003 and 2007.
Saudi officials have repeatedly denied that the government plans to drop the riyal's peg to the dollar, insisting that the pick-up in inflation is largely caused by domestic factors, such as a housing shortage

....Directors observed that the peg of the riyal to the U.S. dollar has provided a credible anchor that has contributed to macroeconomic stability,'' the IMF said. ....If, however, inflation should persist and the Gulf Cooperation Council monetary union be delayed, they recommended to consider also alternative exchange rate regimes''

Kuwait, the only one of the six Gulf Cooperation Council, or GCC, states to have dropped its currency's peg to the dollar, said inflation accelerated to a record 11.4 percent in April, before slowing to 11.
1 percent in May

A 2010 deadline for the creation of a regional currency was thrown into doubt after Oman pulled out last year and Kuwait dropped its dollar peg.
A draft of the Monetary Union Agreement, which provides a legal framework for the currency, will be passed to finance ministers in Jeddah in September

Inflation is the ....main challenge'' to the Saudi authorities in the coming period, the IMF said

....In view of the limitations imposed on interest rate policy by the currency peg, fiscal restraint will be critical,'' it said

To contact the reporter on this story: Matthew Brown in Dubai at [e-mail]


The inevitable collapse of the dollar - MUST WATCH