This week’s report in The Independent that the various oil-producing states were planning on dumping the US Dollar set the tone for a horrible rout of the greenback that only moderately with the help of some Asian intervention.
There weren’t many folks who took the details of the report too seriously — it was very cloak & daggery, and the author Robert Fisk has a definite agenda — but there was probablly something to the idea that countries like Saudi Arabia and China have had some talks about a post dollar future.
Politico: But some are wondering whether the story, resulting chatter, and Drudge links were part of some deliberate attempt to crush the greenback and cause gold to spike.
So who wanted dollars diving and gold rising? In other words, who is Fisk’s source, and why did he or she want to tank the dollar? It’s the global currency version of the old Washington parlor game of speculating on the real identity of Deep Throat.
No one knows.
But one thing is for certain: With the price of gold jumping to $1,048.20 per ounce, traders who moved early enough stood to make millions.
So in government circles in Washington, speculation immediately centered on gold traders: With the skyrocketing price of gold, they’d be the biggest beneficiaries of the article. Read the whole thing >
Frankly, to us, this sounds nearly as implausible as the original story itself. At least it’s amusing.