That is all I need to know that there is only one wise move to be made by Gulf nations here. But just for good measure, let's listen to one guy who has as many fingerprints on current financial crises as anyone.
Currencies of the Gulf Cooperation Council (GCC) member-states have depreciated by over 37 percent in nominal terms since 2002 because they are pegged to the US dollar, according to a new report. The report, published by NCB Capital (NCBC), the investment subsidiary of Saudi Arabia’s National Commercial Bank, stated that the most appropriate policy response would be to change the peg to a basket of currencies, simultaneously accompanied with a small one-time revaluation to offset part of the sharp loss in value of local currencies. . . .
The Gulf countries have seen skyrocketing inflation in recent times because their currencies are pegged to the plunging dollar.
The currencies of five GCC countries - Saudi Arabia, the United Arab Emirates (UAE), Bahrain, Oman and Qatar - are pegged to the dollar. . . .
“We estimate that the Saudi riyal, UAE dirham and Qatari riyal have effectively depreciated 40 percent, 37 percent and 47 percent respectively in nominal terms since 2002, in a period in which the US dollar slipped 78 percent against the euro,” D’Aguiar said.
“In contrast, the Kuwaiti dinar’s peg to a currency basket has limited its depreciation to 23 percent,” he added. Source
So, what would happen if all those Gulf states follow NCB's advice and drop the dollar? According to experts using basic logic, de-pegging from the dollar would mostly hurt central bankers and other private and state entities which typically benefit from the illicit and immoral policy of destroying the currency to finance a global empire. A short list of those most affected includes, most notably, neocon-Likudnik policy executives, their weapons and energy cartels, and their cronies on Wall Street and in corporate media.
In February this year, former US Federal Reserve chairman Alan Greenspan had said floating the Gulf currencies would be the best way to check inflation.
“It (de-pegging from the US dollar) is probably the most useful thing that can be done to stop the increasing influence of foreign assets on the monetary system and therefore the monetary base which is basically the major force in inflationary pressures,” he said during the course of a speech at a forum in Abu Dhabi. Ibid.
For their own sakes, the Gulf regimes will likely have to drop the U.S. dollar; but will the U.S. regime then drop them? We know what happened in the early 1950s, when Iranian Prime Minister Mohammed Mossadegh had the audacity to strive for national independence from such foreign (U.S. and British) interests. A similar shakedown is happening today, and as a consequence, Iran has been leaving the dollar in favor of the euro for some time. It's just a matter of when the sufficient military pretext arises which constitutes the next regime-change. If the neocon-Likudniks follow their own standards, then the entire Arabian Peninsula might eventually be carpet-bombed into submission. Not that I would ever accuse them of holding to a single-standard, of course.
And even if every "neocon" of the Bush Administration is out of the government in 2009, the show still goes on. Those current and former U.S. officials with stakes in U.S. and Israeli militarism-imperialism are too numerous to fathom and are too entangled in the illicit MIC to digress. Absent a near-180º change in U.S. foreign policy, like the logical, constitutional approach Ron Paul has always advocated, no nation in the world is safe from these pirates. Their will to secure their interests—those which they pretend to believe are U.S. interests—does not diminish with the scenery. So, being a Persian Gulf puppet to the the empire just got harder.