Gulf funds drift away from dollar

[JCMach1]

Source: Gulf News

Asset diversification by the Gulf sovereign wealth funds and the possibility that the Organisation of Petroleum Exporting Countries (Opec) will change the pricing of oil from the dollar to another currency could mean more trouble for the dollar.

The dollar has been losing its charm as a reserve currency due to its persistent weakness against a host of other international currencies...

Amid the dollar's free fall following the half per cent interest rate cut in September, Qatar last week said its $50 billion sovereign wealth fund has cut its exposure to the dollar by more than half to about 40 per cent of its portfolio...

Analysts see the admission by Qatar as a signal that regional state-owned funds are moving away from the dollar...

During the past 12 months, companies, mainly state-owned investment arms and private equity firms from the GCC, have quietly acquired more than $50 billion in assets worldwide with Asia's and Europe's shares together accounting for more than 55 per cent.

The state-owned Kuwait Investment Authority, with assets of more than $150 billion, last year increased the Asian share of its portfolio to 20 per cent from 10 per cent.

Although gulf central banks have been discussing asset diversification in the past two years, there hasn't been any evidence of a major shift. The size of assets held by Gulf central banks are relatively small compared to the funds managed by the state-owned investment funds.

According to IMF estimates, global investment funds managed by governments control an estimated $2.5 trillion, outstripping hedge funds. Morgan Stanley estimates these assets could rise to $12 trillion by 2015, roughly the size of the US economy. Gulf countries account for a major share of these funds...



Read more: http://gulfnews.com/business/Economy/10158647.html

---

Big problems for the US economy unless the dollar flow comes back into the US.

[lovuian]

1. They want top Euro for their Oil and yet we still gotta protect them

its BS

[Theduckno2]

3. It's not BS, it is BusinesS.

Funny I could read your thread title and get the impression that the U.S.A. is running some sort of a protection racket. ;)

This is enough to kick this important story.

[Up2Late]

2. Oh Boy, GHW Bush is NOT going to like this news! Jr. is really gonna get it if this keeps up!

Someone really needs to tell our oil rich "friends" that dumping the Dollar now will hurt them almost as much as it hurts us (i.e. if they dump most of their Dollars, they will make that 30-40% they keep almost worthless).

[TheMadMonk]

9. Since the US Administraion seems hell bent on tank the dollar regardless...

...Why shouldn't they get what they can for what they have. It's only going to be worth less next week.

[tabasco]

26. I'm sure the Chimp will jawbone with his buddies like he promised

to do for high gas prices (when gas was $1.65/gal).

[WCGreen]

4. That is so odd...

Being that one of the reasons we really invaded Iraq was because Saddam was treatening to go Euro...

The only thing that will save the buck from total devaluation on the world market is the Russian mob and the Columbian cartels have all their money in Dollars..

[JCMach1]

5. I believe we will bottom soon

Once a Dem is in office next year, the money flows should start shifting back in this direction.

[Thor_MN]

6. Which would be explained away by neoconservatives as

Big Dog's policies set us on this course and little dumbass's policies set us straight but that is took 8 years for his changes to fully take effect.

[JCMach1]

7. What can you do?... markets and other countries have '0' respect

for the Commander-in-Chimp.

Anyone would be seen by the markets as an improvement...

[maxkeiser]

8. watch my film "death of the dollar" i made for AJE -

this is part of a nine-part series of films i'm making for al jaz. english on the subject of the dollar's death - and the fall of america's economy; the next film will be broadcast on AJE next week - about how US banks are selling fraudulent debt to german banks, etc.

http://uk.youtube.com/watch?v=zmyvEhU-gmw

[90-percent]

10. Nice piece there, Max!

Very interesting stuff. Well produced and you can speak french, too!

I thought FDR did away with the gold standard?

Or did he just forbid private people to own any gold?

Just because this administration has fucked up everything they've touched, doesn't mean they are wrecking the US economy also, does it?

-85% Jimmy

[loudsue]

14. Nixon was the one that took us off the gold standard. It's been a

charade ever since.

[NotGivingUp]

13. Excellent! More people need to see this film. n/t

[L0oniX]

16. Welcome to DU

[cosmicdot]

17. knr

your film


loved the Paris setting, too

[maxkeiser]

18. if you liked death of the dollar; you might like these... also for AJE

if you liked 'death of the dollar' you might also like;

"rigged markets" part 1
http://uk.youtube.com/watch?v=8z66kmPRl5Y

"rigged markets" part 2
http://uk.youtube.com/watch?v=_3H6uEyR66M

"Money Geyser" part 1
http://uk.youtube.com/watch?v=JjglR2KYz5o

"money geyser" part 2
http://uk.youtube.com/watch?v=MPRoQ7OxZAQ

[JCMach1]

19. Keiser's work is worth a look for those of you haven't seen his stuff yet...

He gives a slighly off of center and easily digestible analysis of the very complex world of markets and money...

And yes, glad to see you back on DU again...

[maxkeiser]

25. did you catch this one?

This film looks at the CIA's bungle to kidnap someone in Milan Italy.

"Extraodinary Antics" pt. 1
http://www.youtube.com/watch?v=_CVEMysbdOQ

"Extraodinary Antics" pt. 2
http://www.youtube.com/watch?v=wIFJltamP_A

Here's the transcript...
http://www.karmabanqueradio.com/temp/tortu...

extract:

MAX KEISER
All roads used to lead to Rome, today all roads lead to Washington DC.

MAX KEISER
According to some reports, Condoleeza Rice, while she was heading up the National Security Council, personally ordered the kidnapping and rendering of Abu Omar.

MAX KEISER
It was a way of showing other nations that America didn't need friends. It could go it alone.

MAX KEISER
Of course, today the story is different. These other nations are issuing indictments and warrants because America is involved in the dirty business of extraordinary rendition.

MAX KEISER
The Romans used to throw the Christians to the lions, today, America throws the Muslims and the Mexicans to the savages at Fox News.

[JCMach1]

30. Will have to catch up with a couple of segments-

my job doesn't allow me to watch AJE and "Power to the People" all day. :)

If you would like to have a regional speaking engagement at some point, I can arrange a gig with the premier University in the Gulf the next time you are in Dubai.

PM me, or email my DU screen name at yahoo.

[TroubleMan]

28. I just watched almost all of your films....great stuff.

I agree with your points, however, what's the solution?

Is there a solution?

[DemReadingDU]

29. Check out this other thread

MaxKeiser posted in this thread a couple weeks ago

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=385&topic_id=56746

[DemReadingDU]

27. Very Informative!

I'be been learning about the devaluation of the dollar and true inflation, here at DU for some months. Your films are informative. Let us know next week when the next film is finished.

[Broadslidin]

11. The Communist Chinese Loan Sharks must also Dump the Imperial U.S. currency.....

Let the narcissistic Amurikans spin on that one...!

[JCMach1]

12. ME is a bigger problem currently with something like 3.5 TRILLION

in total $ (give or take a few hundred billion).

That is 3-4x larger than the Chinese share...

[amandabeech]

20. The Chinese can sell treasuries and purchase stock in non-U.S.-based corps,

but they then will sink their own currency, which is tied to the dollar.

The Chinese will have to break the dollar peg, otherwise their currency will go down the toilet with the dollar.

If the Chinese currency appreciates against the dollar, which it would have done long ago if it floated freely, Chinese goods will not be so cheap here, and it is possible that some companies will move their manufacturing elsewhere.

Just where that spot might be is unknown. Most Asian governments manipulate their currencies so as to give them an export advantage, even if means that imports of things like oil will be more expensive.

If the Chinese up the value of their currency against the dollar, expect all Asian currencies to rise as well. Unless we can control a country. How about Burma?

It is also possible that more manufacturing will move back to the Western Hemisphere if China revalues and transportation costs continue to increase with the cost of oil so long as the security situation does not deteriorate.

Personally, I think that Mexico will be in increasingly bad shape once its oil depletes to the point that it can export very little, and that day may not be too far away. Couple that with increasing enforcement of U.S. immigration laws, and Mexico could be a very rough place in 10 years, as if it isn't already in some areas.

It is an interesting story to follow.

[JCMach1]

21. China's finances are a house of cards with MANY poor performing loans

think the asian crisis... except on a grander scale when and if that breaks...

They still have time though... However???

[amandabeech]

22. I agree with you 100%.

They also have a very angry rural populace.

Then there are the huge pollution problems that many Chinese riot against.

All is not rosy in China, but they face some difficult choices.

We need to give them enough room to tackle their problems and help us out while saving face.

The latest incident with Mattel apologizing shows just how important it is to them.

[JCMach1]

23. Also, the scale of the pollution in the cities is Dickensian, or worse

Think dark satanic mills and toxic rivers...

[amandabeech]

24. What is sad about it, is that the Chinese can easily see how difficult it is

to clean up after the pollution is already in the ground or water.

They simply did not learn one thing from the problems that the industrialized world is having now cleaning up the mess that began accumulating 100-150 years ago.

For smart guys, they sure are dumb.

[Joanne98]

15. This means gold is going up some more! Especially Barricks.. BFEE

gold minging company. ABX symbol if u want to watch Bushco make some money. It's bad for the country but it sure is good for the bush family!
CHA CHING!!!!!