http://www.marketwatch.com/story/potential-end-of-dollar-based-oil-deals-lifts-gold-2009-10-06

“Gulf Arab states, along with China, Russia, Japan and France, are planning to put an end to dollar-based trading in the oil market, according to an exclusive report published Tuesday in the U.K. by The Independent.”

“In place of the greenback, the nations plan to use a basket of currencies, including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar, the report said.”

It was denied. But if the rest of the world wants to stick it to the U.S. in the wake of the Bush Administration and the global meltdown, this would do it.

People in the rest of the world are increasinly ticked off about the priviliged position of the dollar, which they must hold to participate in trade even as it is debased because “Reagan taught us deficits don’t matter.” I think the fact that Chicago was eliminated in the first round of the Olympic voting is telling.

If this bomb goes off, what has happened thus far will look like a walk in the park. Transit and intercity rail to save oil? We won’t be able to afford the oil needed to build it. And yet, any initiative which would impose any short term sacrifices to secure our long term indepenedence from this economic and national security threat (let alone the environmental threat) is thought a political loser.