SeekingAlpha.com:
Gulf Cooperation Council leaders yesterday concluded their 29th annual summit meeting in Muscat, Oman with a final approval for the creation of a single currency for the six-nation economic bloc, still targeted for 2010.
Saudi Arabia is the largest economy in the GCC and boasts substantial gold reserves. But whether gold will be included in the currency basket has not yet been decided.
GCC assistant secretary-general Mohammad Al Mazroui told Gulf News: ‘We first have to decide on the location of the Central Bank, then the Central Bank and Monetary Council will have to decide on the gold reserves for the Central Bank’.
The creation of the GCC single currency - likely to be known as the Khaleeji which means Gulf in Arabic - is a major gold event for two reasons.
First, the breaking of their dollar pegs by the Gulf Arab nations is clearly dollar negative. Secondly, any inclusion of gold either as a part of the monetary basket, or in the reserves of the new GCC Central Bank will create additional demand for the precious metal.
The project is gathering pace, and no lesser a figure than Saudi Arabia’s King Abdullah has directed that GCC economic integration committees speed up their work and complete the whole exercise by September 2009.
It is only a couple of months since a group of Saudi businessmen allegedly bought $3.5 billion worth of gold, believed to be the largest ever single transaction for the precious metal. Perhaps in 2009 it will be gold rather than local currencies which become of interest to speculators about monetary reform in the GCC.
Gulf countries are keen to break away from the link with the US dollar because it ties them to inappropriate monetary policies that exaggerate the boom-to-bust cycle in their economies.
Bruce Note:
Dr. Robert A. Pastor, a member of the Council on Foreign Relations (CFR), "told the Trilateral Commission in 2002 that the North American Union needed to implement a series of political proposals which would have authority OVER the sovereignty of the United States, Canada and Mexico.
They are making MASSIVE changes to our regulatory laws and calling them 'HARMONIZATIONS'. What they are doing is degrading our legal standards to align with Mexico's corrupt oligarchy and Canada's socialist parliamentary system. The only difference between the creation of the EU and the NAU is that it took 55 years for the European free trade agreement to morph into the EU. Unless we can stop them, they will accomplish the NAU here in a BREATHTAKING 15 years. The One World Monopolists have already declared before our Congress, that our borders are to be eliminated by 2010.
All nations will be regionalized by 2010.
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