http://www.ft.com/cms/s/277471c2-8889-11db-b485-000 0779e2340.html

Oil producers shun dollar

By Haig Simonian in Zurich and Javier Blas and Carola Hoyos in London

Published: December 10 2006 20:11 | Last updated: December 10 2006 20:11

Oil producing countries have reduced their exposure to the dollar to the lowest level in two years and shifted oil income into euros, yen and sterling, according to new data from the Bank for International Settlements.

The revelation in the latest BIS quarterly review, published on Monday, confirms market speculation about a move out of dollars and could put new pressure on the ailing US currency.

Market liquidity is traditionally low in December, and many traders have locked in profits, potentially reinforcing volatility.

Russia and the members of the Organisation of the Petroleum Exporting Countries, the oil cartel, cut their dollar holdings from 67 per cent in the first quarter to 65 per cent in the second.

Meanwhile, they increased their holdings of euros from 20 to 22 per cent, the BIS said. The speed of the shift may help to explain the weakness of the dollar, which recently fell to a 20-month low against the euro and a 14-year low against sterling.

The BIS, the central bank for the developed world’s central banks, is customarily cautious in its language. However, it noted: “While the data are not comprehensive, they do appear to indicate a modest shift over the quarter in the US dollar share of reporting banks’ liabilities to oil exporting countries.”

The review shows that Qatar and Iran, whose foreign exchange policy has sparked widespread market speculation, cut their dollar holdings by $2.4bn and $4bn respectively.

Such shifts may be modest compared with the total assets held, but they provide a crucial indication on future thinking.

Currency switches are likely to be progressive, subtle and discreet, as untoward attention could hit the dollar, lowering the value of depositors’ remaining dollar-denominated assets.

The last time oil-exporting countries cut their exposure to the dollar – in late 2003 – it pushed the euro to an all-time high against the dollar. Eighteen months ago, the exposure to the dollar of oil producing countries was above 70 per cent.

BIS data is the best guide financial markets have to the currency investment trends of oil producers, which otherwise do not provide figures. The rise in oil prices since 2002 means oil producing countries have amassed a current account surplus of about $500bn, according to the IMF. This is 2½ times the current account surplus of China.

Overall, Opec’s dollar deposits fell by $5.3bn, while euro and yen-denominated deposits rose $2.8bn and $3.8bn, respectively. Placements of dollars by Russians rose by $5bn, but most of their $16bn additional deposits were denominated in euros.

The dollar has suffered weakness because of concerns about global imbalances and the future course of the Federal Reserve’s interest rate policy.

Additional reporting by Peter Garnham in London

Copyright The Financial Times Limited 2006

re:41599 The Christian, moral, right thing to do in Eyerack now would be for the God Blessed United States of Imerrika to ask forgiveness of the Iraqi people, put away our guns, get sensitivity training to better understand things not white Christian, tell the Iraqis we’re going home to soul search, but, before we do, we’re going to try to right the wrongs we committed in their country and open up our treasury to them so they can put their lives, which are every bit as valid and precious as our own, back together again.  And, lastly, that we fucking won’t ever do this again, even if it strikes a blow against our own economy, because we understand that you can’t put a barrel price on a human life, even if it’s not white Christian.  But, then, when did America ever act moral or Christian in matters of “protecting abroad the interests of the God Blessed Younitid States uv Imerrika?” I believe the IRSG is a sham and a disgrace.  It should have been convened years ago.

As other comments have stated, George W. Bush is criminally insane.  As GCW(?) said, he thinks that “God” whispers in his ear.  By the way, he also likes to torture people.  He’s got an antisocial psychotic personality and if he isn’t impeached, he should be removed from office per the 25th ammendment.  But Cheney (a true war profiteer and also a criminal), enabled this war criminal to start a war, as ineptly as possible, so that Hallerburton would make a killing.

George W. Bush stated during the 2000 election that he would run the presidency as a business, based on his Harvard business school training.  Why didn’t anyone ask for examples of his business successes?  Of course, the corporations didn’t want it shown how incompetent George W. Bush was in business.  The only reason that he bought the Texas Rangers was because he insider traded his Harken Energy stock.  Obviously, Poppy had told him that he was going to attack Iraq.  He broke the law in not reporting his insider trade for 8 months.  Those trades are required to be reported every quarter.  But Poppy was president and his “wayward” son needed help.  The whole family is disgusting.

In Iraq- Show must go on.

After going through the ISG report one finds that Baker-Hamilton, Blue ribbon panel is suggesting; George W Bush to have a ‘U’ turn and abandon all the running policies; being executed in Iraq by occupying, ‘US lead forces’.

Fearing a complete inhalation in the muddle of Iraqi dilemma that US have created for them selves; US may be in thickest of trouble for their ‘deeds’ of decimation of such a large numbers of innocent Iraqis and bringing a complete chaos and devastation to that country. Now; very sheepishly; US want to run away from it. But let be honest (to our self at least); that, do we really believe that US would quit the original plan and get on their knees to repent for their sins?

Arrogant rarely listen or take any heed; it is for sure; that Neocons or their cohort admirers probably may not like to abandon their vicious designs at all.

Matter of fact is that Neocons rapacious greed to subjugate and emasculate the defence less Poor Iraqi for their vested interest has taken all of us for a big ride and American are finding them selves known as; the most visionless, arrogant and a hated country in the eyes of majority of the people of the world.

Although people out side of USA do respect the American nation on the whole and admire their resolve that they stood up against the policy and heinous war crimes being committed by American forces in Middle East; but looking at the arrogant response from US administration; other countries have really started loosing faith in the US democratic way of life.

In democracy; people may have their right to say about an issue; but when they don’t have their say in the execution part of it. So; to what avail is their say or the democracy? American people rejected the Neocons conservative and throw them out; but public find them selves stuck against the wall after doing all this. They cast off the conservatives and their policies; but failed to stop the run of policies that they vehemently rejected.  And we know that in the Middle East committal of atrocities is on increase as ever.

Undoubtedly in US Mid-term election; we find that heads did roll and many sick heads were removed; except the big head; which is still heading all the heads; a tall head; just to prove that he is still; a head of the heads and is bent to behead many more Middle Eastern heads!

US Armed forces are out there to achieve ‘their type of peace’ in Iraq and Afghanistan. Thanks to Osama bin laden that he is ‘live and kicking’, along with his Al-Qaeda; He is there so are we; he is making our stay possible and we will let Osama legion live till our goal of ‘our type of peace’ is not achieved; we have got our right to be there.

So in Iraq-show must go on!
-----------------------------------
Love for all, Hatred for none

...first when the founding fathers decided the right to bear arms, the arms they were thinking about was rifles, hand guns…
—Comment #41416

Actually, they were thinking of the importance of “A well regulated militia being necessary to the security of a free state.” Back then there were not the Military that we have today. Things were quite different in that regard. But few Americans are educated about this.

With the state of the World we have today, America needs a strong military. We need to be ready to defend ourselves. And that means military might.

Our invasion of Iraq was not about defence, though was it? Oh, sure, there were a few quotes by our “leaders” about preventing Saddam from arming terrorists or something. But all that turned out to be false.

The only way of “promoting democracy” is through fair and open trade where our people get to know their people and vice versa!

It is entirely IMPOSSIBLE to promote democracy through force of arms. Any person who believed that our invasion of Iraq could have ever produced anything other than what it has is a complete and utter moron.

(Or a complete and utter ideologue who has not his head in reality but in some pathological God-wants-me-to-do-this-complex.)

The Invasion of Iraq very well may have set back democracy in the Middle East by a decade.

I love TD because, unlike my wife who has left me because of my overbearing, incessant commenting on Bush and Eyerack, I can blow off steam w/o retribution.  This is not withstanding that TD commenters have the great insight our Great White Leaders (GWL) sadly lack.  I would like to thank our GWL for always asking God to Bless the Younitid States uv Imerrika at the end of their public appearances and key speeches.  I do understand that they understand the political benefits of saying that--you’ve got a whole lot of constituents out there who just love how it rings, and you wouldn’t want to give anyone the impression that you were an atheist, Jew or Muslim or any other such horrible thing; a lot of those people look unclean and a little yukky and, well, suspicious, all things a GWL shouldn’t look.  The reason I’d like to thank them is this:  the Younitid States uv Imerrika would be in a Hell of a fix, wouldn’t it, if our GWL didn’t have the acumen to remember to ask God to Bless the Younited States uv Imerrika?  Why, being blown back to the stone age, we might be the blowees rather than the blowers, making God disappointed in us.  We wouldn’t want that, would we?  Japan, SE Asia and Eyerack.  Gawd really Blessed the Younitid States uv Imerrika there, didn’t he.  Of course, we understand he was on lunch break when Katrina hit.  Everyone needs a little break once in a while.  Then there are the victims of Gawd’s blessing the Younitid States uv Imerirrika, them thar non-Imerrikins, kids and parents, they’re someone else’s people, not Gawd’s.  Katrina victims?  Gawd’s not perfect, ya know. 
I really wish that the good people of the USA would stop their smuggness and self-rightousness and realize, if they want a world democracy, people the world over have to be accorded respect.  The Iraq Study is token and an anachronism, too little, too late.  It might better apply to the future, if our GWL stop asking God to Bless the United States of America and start exercising some intelligence at home and realize that there’s no god in it’s right mind that’s going to bail out any country that acts in a world community the way the USA does.  One more thing, in matters of religion, in the words of the venerable Dr. Phil, “How’s it wurkkkin’ fer ya?” Tough times call for tough measures.  Maybe we should try atheism; I can’t imagine that making things worse than they are, now.

“The United States still has a powerful interest in encouraging the spread of democracy around the globe. Promoting democracy must remain a core goal of American foreign policy.”

It does? It must?

How? Why? That is a typical USofA simplistic view.

Like missionaries should spread Christ into Baghdad?

How about spreading some of it into the US. This is a failed model to learn by.

Something to think about- Democracy or Republic?
I question the writer that wrote Bush’s statement “ The best we can hope for now is an Iraq that can “ govern itself, sustain itself, and defend itself.” E.J. Dionne Jr. nailed it on the head- “don’t listen to what the administration said. Watch what it did.

I’ll tell you someone who is doing a good-excellant job writing the truth and educating those who know what is real, that is Devvy Kidd.
http://www.devvy.com Devvy Kidd posted on her web site a little something-something every citizen in the world should read; quotes and writings are by permission of the author Benedict LaRosa- San Antonio, TX for Devvy Kidd’s web site.

In his home in Switzerland, Heinrich Muller, Chief of the Gestapo, in an interview to the CIA, in 1948 recognized the difference between democracy and a republic. Heinrich said “ Here in Switzerland, is the only real democracy in the world. You in America have a republic, not a democracy. There is a real difference there.” STOP

The word democracy does not appear in our founding fathers Declaration of Independence or Constitution of The United States.

John Adams warned: “ Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy that did not commit suicide>”

Even Plato warned, in his republic, that, as a rule, tyranny arises from democracy.

...end quote.

I say our Congress, Executive Branch, and Press have failed the citizens of these United States and the occupied countries our military boots occupy. We are a nation conditioned for war through conditioning of the media, education, representive’s. <Operation Mockingbird> see CIA.gov or search google.

War, weapons, drugs, and human slavery-prostitution are the feeders of tyranny and population genicde.

wwwwhywefight.com a film by Eugene Jarecki addresses the fears and warning of Dwight Eisenhower which we failed to honor.

E.J. Dionne Jr. promoting democracy may need to be rexamined in my option by the people of this world if we are to reclaim our freedoms.

The Irag Study Group is for the “protection of the oil industry”?

How can Dionne bring himself to thus catagorize the report’s plans to privatize (grab) Iraq oil?

More to the point, of all the thoughtful articles written by others about the Irag Study Group’s report, how is it that Truthdig chooses to present Dionne’s watered-down version?

The End of Shake and Bake Democracy?????.....I seriously doubt it…
You are just like everyone else who claims that some grand action by those in power will change the course of things for the better in Iraq…
Watch, the next thing on Pilosi’s “off the table” list will be this report…

Kathy Mandew

Damage to our ideals?  So what!  We got Iraq’s oil.  As to whether promoting democracy will remain a core goal of American foreign policy, when was it ever such?  How to turn this around?  Our changing the world, that’s how.  And it begins with troops out now, followed shortly thereafter by the impeachment of our president.  After which?  Empire collapses.  And then?  It’ll be up to us.

This Iraq thing is nothing new.  We did it in Iran in 1953.  Check your history.  Only this time we did it backwards.  Back then we got rid of a democratically elected popular president and placed a brutal dictator.  If you want to milk a country for it’s resources while keeping it’s people poor, it is much easier to deal with a brutal dictator.  We should have paid Saddam to keep his mouth shut and “stay the course”.  We have been doing the same thing in Central and South America for years also.  Only now, they are getting smart.  They know we can’t attack them as “communists” if they step out of line, so they just nationalize their resources and keep all the money.  It is always about money!!!

“This war has done enormous damage to the United States, and some of the damage is to our ideals. The United States still has a powerful interest in encouraging the spread of democracy around the globe. Promoting democracy must remain a core goal of American foreign policy.”

The intent is not to spread democracy--it is to continue a policy of U.S. economic expansionism, better known as imperialism or, currently known as globalization.

Of course, globalization is always at the expense of U.S. workers and the middle-class, who finance all wars with their taxes; lose their children when they “volunteer” to fight in it; and then when these same workers are middle-aged they’re terminated from their jobs, by bosses who exploit cheaper global labor. 

If the U.S.  actually cared about “democracy,” the fraudulent elections of 2000 and 2004 would have yielded a different outcome, perhaps, 911 would have never occurred, and Iraq would still have, more than a half a million of their citizens still alive.

But then again, the Christian right, undeniably believe that death is a great liberator; there’s nothing like a little libation, oh, I meant liberation.

Democracy the word has been turned upside down, first when the founding fathers decided the right to bear arms, the arms they were thinking about was rifles, hand guns, so this Nat’l Rifle Association has taken that idea and said that it should apply to all weapons, I think an automatic rifle would chop up the bird you were shooting at, in other words it would be unfit to eat, so the idea has been formed to comply with the Nat’l Rifle Assoc. interpatation.

This latest thing about Bush, the man does not want to stop this thing, because he always had another reason for going to war.

Another example John Kerry said Bush and company owned a forest, Bushie Boy said like “I own a forest”, damed right comes under mining, but this clown thinks people do not listen or remember, my answer to it all before it is to late is to IMPEACH, IMPEACH, IMPEACH, and not only Bush but Chaney also because he is the brains behind this clown, a clown who wears no clothes.

Margaret from Vancouver, Washington

Headless Hissian 12/08.  I agree entirely, we went to war for a lie, Impeach, Impeach, Impeach.

Margaret from Vancouver, Washington

This is in response to comment #41356 dated 12/8 at 9:09 a.m.

Someone else finally can see why we really want to war, to have an excuse to exonorate my daddy, what a good reason to go to war, also the reason is the super hawks like Chaney had war on their mind, 9/11 just fit into their plan.  I say Impeach Bush/Chaney, and the soomer the better, Feb. 2007 would be good.

Margaret from Vancouver, Washington

All war is failure to the human race, George bush has personaly called for the killing of more then 500,000 people who posed no threat to us or our freedom, He has destroied a whole country and set back the clock in the middle east 30 years,and Shreded our constitution and devided our country. Terrorism is fake and so is the fear these people spread impeachment is the only answer.

you can’t have freedom without justice.

ooh wait george did put the no call list thru for those damm telemarketers so maybe it is a draw

I say this country does not really have a democracy, what we need is the means to get bad people out of office, and the people who take him out should not be penalized for doing what is right, even though people do not go with Liberman on some issues, I believe that he is a good man and since he is a good man he will not run for vice president again.  I say get rid of the electrical college, because this Bush got in without the popular vote, plus he stole Fla.  Gore should have been president.  Kerry also should have been president, the current administration should have lightning strike them dead, when they talk about democracy and then try to rid the election not directly but behind closed doors.  An administration peopled by the past run by a Emperor without clothes, I say impeach, impeach, impeach.

Margaret from Vancouver, Washington

If only daddy would have had the sense to pull out when it really mattered, 60 years ago......

The best we can hope for now is an Iraq that can “govern itself, sustain itself, and defend itself.”

Gee, that WAS that state of Iraq before we invaded.

George Bush (enabled by Cheney, Wolfowitz, Rumsfeld, AEI, et.c ) invaded Iraq because Saddam Hussein “tried to kill my dad.”

The war in Iraq was started by several men of power simply because they could.

The war in Iraq is a personal war. Men of power (USA) diposing man of power (Saddam).

The war in Iraq is an arrogant war of power. That is all. Do not be deceived with rhetoric of “bringing democracy.” They invaded because they could. They may have convinced themselves—Bush, Cheney, et. al.—that they invaded “out of goodnees” but such a position is corrupt.

Killing in the name of goodness is what evil truly is.

Hold on for a second here.  The USA did not into Iraq to promote freedom!  Remember the original reason...WMD.  As we all know there were none, so the freedom thing is an after thought gang.  I’m about 3/4 of the way through ‘State of Denial’ (the Woodward book).  It confirms the early belief that some of us had that this president was going to Iraq..no matter what.  9/11 and terrorism opened the door and lies about WMD etc provided the drum beat.  Hell, if he wanted to really promote democracy...go after Cuba!  It self contained, its run by brutal dictator (or dictators brother by now).
You get my point...dont dwell on the democracy crap..it was never intended to be that.

Headless

agree with DennisD

“Fix ours first!” could apply to a lot of things!

Impeach, impeach, impeach.

As I look at this group of old white men who have been recycled through various administrations and who have been a part of most of our past mistakes as well as the present, I am inclined to wonder how the mess makers of old and the mess makers of today, are going to fix this mess.  I respect wisdom, but fresh ideas are greatly needed in our government. I simply have no confidence in anything or anyone who has been connected to either Bush 41 or 43.  There has been too much political inbreeding with this group.

DennisD:

I can mostly say ditto.

If democracy is to be promoted, use the lessons of the one in US to not repeat, not as a model. This one has been run by Big Bus at least back to the days (30’s) when GM trashed the “trolley” infrastructure.

This is one of the few remaining pure “KING” “democracies” taken from the British in the late 18th century. The prime minister form is much better.

“Democracy in America is a myth,” DennisD? Don’t be ridiculous! It would be foolish to deny that we have any problems, but it’s even more foolish to ignore what’s good in America. Thinking like that means you’re accepting defeat before you even begin. If there’s nothing sound in a structure, you might as well tear the whole thing down - Armageddon-type thinking like the most extreme of the religious right. It’s stupid, and just plain WRONG.

And turning to Bush, this is the problem with a “faith-based” government. Bush thinks his god whispers in his ear, so he can’t be wrong. And what good is evidence? If it contradicts what he already knows is true, then the evidence must be wrong. This is why Bush has never made a mistake - because he believes only what he wants to believe.

The really funny thing (funny if it weren’t so tragic) is that the right-wing always complained about Democratic attempts at “nation-building.” No, I mispoke - there’s NOTHING even remotely funny about all this. It’s a disaster, a horrible tragedy, for our nation and for the world.

It was clear that the war was ill conceived because what Bushie boy really wanted was to look good in office and since he had no idea how to be president having a war made him look good, the only bad part was he elected Rumsfeld to run the war, but this administration was really a clone of the first Bush.  Even his choice of Baker goes back to daddy, the difference between jr and daddy is daddy had the sense to pull out before things got bad.  I say this president if he still goes the stay the course route, impeach impeach impeach.

Margaret from Vancouver, Washingtonself8

If we’re holding our own country up as a role model for democracy we truly have a problem. We have massive corruption at every level of government. The American citizen’s vote insures no meaningful change to anything. Lobbyists and special interests control Washington D.C. and every town and city across the country. Everything goes in the name of “Crapitalism”. The rare honest person in government learns quickly that if they wish to stay in the game they have to play by the rules or they’ll be ignored. The rules in no way promote fairness or equality or justice. Incessant greed has superseded everything else. Democracy in America is a myth.