UAE Ditching Dollars...The Saudis Are Next

Submitted by QTR's Fringe Finance

I'll be the first to admit that two of the main themes on this blog – the United States' sovereign debt crisis and the deterioration of the petrodollar – have been extraordinarily slow-moving theses.

In both cases, there have been developments that stand at odds with my contentions. For example, US stock indices continue to move higher, despite our economy grinding to a halt, and the BRIC nations have not developed and put forth their own reserve currency to combat the dollar, as I have suggested may happen. They also haven't backed any of their sovereign currencies with gold, as I have also suggested. While the timing hasn't proven me right as quickly as I would like, it doesn’t mean that things aren't ticking forward for both of these forthcoming realities.

And, in the case of the death of the petrodollar, there was a huge development in late November that was under-reported and unnoticed by the market.

The death of the petrodollar is one of the key waypoints in the US dollar losing reserve currency status, as I have written about at length in the past. And while the US dollar used to be the only currency that foreign nations would trade oil in, that has now come to a screeching halt.

Not only is Saudi Arabia trading oil in other currencies than the dollar (notably the Yuan), it now appears the UAE is also strategically shifting away from the US dollar in its oil transactions, marking a significant change in the global financial landscape.

This move, involving potential deals with up to 15 countries including China, Russia, and Egypt, is part of the de-dollarization trend I have predicted, led by the oil sector. Led by the BRICS alliance, the move is redefining global economics and challenging the US dollar's dominance in international trade.

Photo: The Telegraph

When you take this into account alongside the fact that Russia is strengthening its ties with China and Saudi Arabia, it is tough to think anything but that we are still solidly on the path to global de-dollarization. Just yesterday it was reported that Russia was working closely with Saudi Arabia and OPEC — who has many member nations in the BRICS consortium — on oil cuts.

Shortly after Russian President Vladimir Putin's unexpected visit to Riyadh...(READ THIS FULL ARTICLE AND INTERVIEW HERE).