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Friday, May 23, 2008

Bloomberg: Soaring Oil Prices May End Dollar's Global Status, Study Says

Bloomberg reports:

"Soaring oil prices may cause an energy crisis that will eventually lead to a new world financial system based on multiple currencies instead of the U.S. dollar, according to a Rice University study.

Rising inflation fed largely by oil-producing countries will force Western governments to tighten monetary policies, undermining export-driven economies in China and India, according to a study released by the Houston-based university's Institute for Public Policy. That would undercut energy demand, ending cheap credit worldwide that is fueled by so-called petrodollars and further undermining the global economy.

...

China, India and Middle Eastern oil producers such as Saudi Arabia have an interest in working with Western governments to establish a financial system based on a range of currencies that would offer similar stability to the days of the gold standard ...".


But what's the knowledge behind that attempt of reforming the financial system?

USD is not good or bad itself, if not to consider its usury nature (credit bubble) that can be true for any currencies or for their set. What's the difference to have one credit bubble or the several ones, which will be connected via mutual exchange?

The stuff for thinking is in this dialogue, for instance.

From my point of view there is a way to parallel current financial system by natural money in order to have a choice in sense of democracy, freedom and liberty (if they and you are serious about that values). Then to see what works better.

No irony here. Changes without changes save nothing, but can destroy everything globally.