Paulson lying desperately to keep the Arabian dollar peg

[DriftWood]

This charade is almost funny. Everyone know its lies.. the Arabian dollar peg's and US interest rate peg's, cause massive inflation in the oil producing Middle East. Ending the peg is the solution, but it would mean an end to the petrodollar.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a8jKJ5w15ACw&refer=home

Excerpt:



U.S. Treasury Secretary Henry Paulson said Middle East leaders haven't indicated concerns with their fixed exchange rates to the dollar and understand that abandoning the peg would have little impact on rising prices.

``There's quite an awareness that the dollar peg does not influence inflation to a significant degree,'' Paulson told reporters en route to Abu Dhabi after meeting with Qatari central bank Governor Abdullah Bin Saud al-Thani and Prime Minister Sheikh Hamad bin Jasim bin Jaber al-Thani in Doha. ``Ending the peg is not the solution to the inflation problem.''

Asked whether he was ruling out any change to the peg by Gulf nations, he said: ``I'm not ruling anything out. I don't want to characterize it. This is their sovereign decision.'' At an earlier press conference in Doha, Paulson said: ``I haven't heard anyone say to me that the peg is a problem.''


Cheers

[RSLudlum]

Yeah, I read quite a few articles this morning reporting on his visits and statements. Quite funny how he has been throwing the term 'soveign' around like he's actually warning them: "It's your decision if you want to depeg from the dollar ie if you really want to feel the wrath of the US"...I swear it never ends does it?