Alan "Bubbles" Greenspan tells Gulf to drop dollar

[Joanne98]

Alan Greenspan, the former chairman of the US central bank, or Fed, has said that inflation rates in Gulf states, which are reaching near record levels, would fall "significantly" if oil producers dropped their US dollar pegs.

Speaking at an investment conference on Monday in Jedda, Saudi Arabia, he said the pegs restrict the region's ability to control inflation by forcing them to duplicate US monetary policy at a time when the Fed is cutting rates to ward off an economic downturn.

Debate is rife in the Gulf on how to tackle inflation.

Levels have hit seven per cent in Saudi Arabia, the highest in 27 years and a 19-year peak of 9.3 per cent in the United Arab Emirates in 2006.

Free float?

"In the short term free floating ... will not fully dissipate inflationary pressure, although it would significantly do so," Greenspan said.

Saudi and UAE central bank chiefs are in favour of retaining dollar pegs, but Sheikh Hamad bin Jassim bin Jabr al-Thani, the prime minister of Qatar, is pushing for regional currency reform to avert possible unilateral revaluations designed to curb inflation.

According to Hamad Saud al-Sayyari, governor of the Saudi central bank, floating the Saudi riyal would not be appropriate for an economy that relies on oil exports.

"Floating is beneficial when the economy and exports are diverse ... as for the kingdom it remains reliant on the export of a single commodity," he said.

Investor attraction

The dollar peg was also defended by Sultan Nasser al-Suweidi, the UAE central bank governor, at a conference in Abu Dhabi on Monday.

He said the policy was helping Gulf states attract foreign investments.

"They did very well for our economies because it has led to more capital flows," al-Suweidi said.

Qatar, has the region's highest inflation, and is considering the revaluing of the Qatari riyal to combat inflation currently at 13.74 per cent.

The exchange rate contributes to about 40 per cent of inflation in Qatar, where the riyal is believed to be 30 per cent undervalued.

Qatar's stand

"We prefer always to act with all the GCC countries," Sheikh Hamad said.

Qatar currently chairs the six-nation Gulf Cooperation Council.

"It's now time for the Gulf to have its own currency," he said.

Sheikh Hamad said such a currency should be "like the Japanese yen or other currencies".

Deutsche Bank said last month that both Qatar and the UAE will probably cut ties to the US dollar this year and track currency baskets as Kuwait did last May.
http://english.aljazeera.net/NR/exeres/FC515689-75CC-4121-BD37-2A84E5BF0C60.htm

[aldo]

1. Didnt you notice his Fed stabbed America in the back?

Hes not a patriot. Tar and feather him for betraying his duty and the interests of America. He either wanted to destroy the dollar (which his suggestion here will also further) or was incredibly stupid.

[Angela Shelley]

3. He only spoke the truth.

He was not betraying the interests of America.

In America´s best interest, the dollar should fall. And then the 300 million citizens will learn to live within their income, and they will force the government to be fiscally responsible.

That´s the least painful alternative.

[melody]

6. Please -- his opinion isn't the problem

It has been his participation with the GOP's guidance of our destruction.

Sorry, the problem isn't America's people -- the problem is the criminal syndicate inside of it.

[diamidue]

8. Income?

When this is over, there may be few people LEFT with a livable income. We're in uncharted territory here, and there is no reason to believe that this government, which has acted fiscally irresponsible for so long, will suddenly act otherwise. It will be painful, alright. I sure would feel better if I actually believed the government was working on behalf of the American public.

[melody]

10. As you know, this government has no interest at all in helping real Americans

Angela is from Europe. I fear she sees us all as the European mainstream press prefers to see us -- rich, fat and
stupid. It's a stereotype that has little to do with reality, but then it's difficult to steamroll a people out of
existence if they aren't first universally hated.

[Angela Shelley]

11. Hi Melody, a message for clarification.

I can only speak for myself and the German mainstream press.

A small percentage of Americans are filthy rich. A large majority of Americans are ex-middle class, moving downwards, because they are living in highly inflationary times, and their government is spending too much money with the occupation of Iraq.

Americans have a problem with obesity, Germans do too. But not all Americans, nor all Germans, are fat.

Because of the MSM in the US, and the close ties with the "filthy rich", the average American does not get enough "true news" to be able to see how decisions in Washington affect his/her life. Americans are not stupid, they are in many cases uninformed, which leads to ignorant decisions.

In summary, the German press "feels sympathy" for the American people, because the American government is not making decisions which help the people in the US, and also making decisions which harm people in other countries.

When the dollar falls, the American people are going to be hit really hard, and then they are going to start a "revolution", and that will be in the best interest of America.

Looking forward to your reply, Angela

[melody]

12. The revolution will NOT be good for anyone

You're going to see a very hard, VERY angry tilt toward the left when the "average American" finds out what has happened
and why it happened. When the economic engine which is California (we are, on our own, one of the world's top economies, whether our enemies like it or not) couples with the emerging socialist economies of south and central America? You're going to dream of the comparatively friendly economic entity that is Vladimir Putin. If you think that will be good for anyone (least of all RW Europe or
any of the other globalist forces that have participated in the attack on our government, social systems and economy over the last
forty+ years), you don't know the depth of anger there is over here right now.

I'm NOT a socialist. I'm very, very concerned about the massive pendulum swing that is coming. And I'm mainly concerned about its impact on the world. The average American will be okay.

[Angela Shelley]

14. Melody, I would like to give you some advice, which will make

your life much easier.

Please refer to other sovereign countries as "other sovereign countries" and not as "enemies". The current government is doing more damage to the US than any other country could ever have imagined. Please remember that people all over the world have their own problems which need to be solved.

The average American is the one who has to feel the pain in order to become involved in a revolution, because he´s the only one who can change the system.

[melody]

15. Angie, I shall give you some advice to make your life easier

Had I been simply referring to "other sovereign countries", I'd have said that. I mean our enemies, both foreign and domestic. These are not countries but political entities. Your condescension doesn't help support your critique.

The average American has been hurting far longer than you have, trust me. In ways you can't even imagine. You don't live here.
You don't know.

[melody]

2. He's one of those put in place to destroy us

Big surprise.

The EU and US blue bloods will repay him handsomely I'm sure. These people have no loyalty to anyone not of their
social circles.

[Angela Shelley]

4. He´s not destroying the US,

it´s the mass overspending which has destroyed the US.

[melody]

5. Obviously, I said he's one of those put in place ... Bush is the primary one

The entire Bush family is a criminal cell against the US government seeded here a long time ago.

[Angela Shelley]

7. and what´s the "mission statement" of this criminal cell?

[melody]

9. Read up on the Bush dynasty. It'll be fairly clear.

Prescott Bush (Dubya's granddaddy) was an active participant in a coup attempt against FDR and the US government. Little
George is just ending what his grandfather started.

I noted you're from Germany. As such, I'll say this in defense of my people -- the vast majority of Americans do live within
their means. They have no other choice. You're talking about the 1% of the population that the international media so
reflexively insists IS the US population.

[TomClash]

13. Another Republican traitor to the Republic nt