BREAKING: VENEZUELA DUMPS DOLLAR? (Bloomberg News)

[redacted]

PETROLEOS DE VENEZUELA TO CONVERT ACCOUNTS TO EUROS (Update1)

By Steven Bodzin

Sept. 16 (Bloomberg) -- Venezuelan President Hugo Chavez instructed Petroleos de Venezuela SA, the state oil company, to convert its investment accounts from dollars to euros and Asian currencies to reduce risk.

Chavez, speaking in his weekly address on national television, said the U.S. has bought goods from around the world, paying with paper that is ``a bubble.''

Chavez said he instructed Energy and Oil Minister Rafael Ramirez to change currencies because of concerns sparked in August when the Federal Reserve increased the U.S. money supply after lending declined over concerns about debt backed by sub- prime mortgages.

The world's oil trading system has primarily used dollars for decades, helping to make the dollar into a global currency. Iran in July requested yen rather than dollars for all shipments to Japan, boosting that currency.

Petroleos de Venezuela had $23 billion in current assets, including $1.88 billion in cash, $848 million in restricted cash and $9.55 billion in accounts receivable, at the end of 2006, according to its audited financial statement. In addition, the company finances the national development fund known as Fonden, which held $27.3 billion as of May 11.

MORE

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZ62iRNzmRo0

[aquart]

1. Pop.

[Vincardog]

2. CAn a chimp go POP? Or is aWoL a weasel?

[Richard Steele]

3. K&R

[lovuian]

4. Ok this is economic War starting and has been in the plans

for some time

Iran Venuzuela and others want to move to the Euro

this will be quite a battle of which Bush has put America in a weak position

Bush is running out of money for his war and they know it

[The Doctor.]

9. Yep... time to Nuke Iran.

:mad:

[followthemoney]

16. Congress won't defund the war.

It's up to China and Hugo now.

This nation should never have let a Chimp monkey around with guns and money.

Bring home the troops.

[Prophet 451]

5. Anyone running a book?

How long until Chimpy starts threatening to invade Venezuala?

[TomInTib]

6. Whoa...

This should prove interesting.

If this is accurate, there will be flaming hair on spinning heads in DC and NYC.

[MisterHowdy]

7. Recommended

This is big.
n/t

[Esra Star]

8. I think that this threat is what sealed Saddam's fate. N'est pas? nt

[Subdivisions]

13. That's part of it. n/t

[Subdivisions]

10. Boom! n/t

[rucky]

11. Smart. n/t

[Macchendra]

12. At least Hugo is working to reduce the national debt.

Viva Chavez! Buy gas from Citgo: the only gas that comes from a democracy.

[IsItJustMe]

14. Pat Robertson and *Co are gonna be pissed.

[sicksicksick_N_tired]

51. Be prepared for news of his assasination.

;(

[Hydra]

15. Another nail in the coffin

they hold very few dollars, but more and more countries are questioning the "petrodollar" and that will ultimately be fatal to our system of money.

[leftchick]

17. "It's not personal Sonny, this is business"

[Swamp Rat]

18. Adios US economy.

Bienvenido a la recesión.

... and Bushler could care less.

[superkia]

19. If the economy crashes, Bush could call for martial law couldnt he?

Dennis Kucinich has been speaking up allot about the attack on our rights and the constitution but still he gets no support. I would advise anyone that doesn't support him and refuses to support him, to press this to the forefront with your candidates. The constitution should be at the top of the issues for our candidates at a time like this in our country's history and I only hear one voice loud and clear on it. I thought I remembered reading that part of martial would allow Mr Bush to use citizens as work forces or something? If that was the case, we could become slaves to the wealthy if we had an economic crash, wouldn't that be grand.


Scary statement from an article after Bush signed the bill:

Despite the unprecedented and shocking nature of this act, there has been no outcry in the American media, and little reaction from our elected officials in Congress.
http://www.towardfreedom.com/home/content/view/911/

[Gregory Purcell]

22. I hear Blackwater will soon be available to police the streets

[Kahuna]

33. Hello Gregory Purcell. Welcome to DU!

:hi:

[SlowDownFast]

36. Welcome to DU, Gregory. n/t

[Hydra]

40. Welcome Gregory!

Don't worry, Blackwater can multitask. They can kill civs there AND here as long as Bush pays them on time.

[Toots]

20. At the rate of decline in the US dollar it would be foolish to hang on to them.

Even if your bond is eight percent over twenty years the dollar is dropping eight percent a year or more. It is like throwing money away and there is absolutely no indication that America is going to get it's financial house in order anytime soon..This throwing money at the rich and ultra rich has destroyed America in financial matters. I expect a depression even greater than the one in late twenties..Now Canadians get the deals when they visit instead of how it has been forever.

[roamer65]

21. It wouldn't surprise me if Chavez's next move will be to sell Citgo.

That way Venezuela won't lose it under possible US sanctions.

[redacted]

24. Correct me but I think they did sell off all their U.S. stations but kept their refineries

going in Gulf states because they were much more profitable anyway. Not sure, but they may have been trying to get rid of the refineries as well. Maybe somebody here more up-to-date on Citgo than me could help us out by clarifying.

[roamer65]

25. They only sold a portion of the stations, but some are still open.

I have two of the open ones near me. A full divestiture would not surprise me in the near future, even the refineries. Time will tell.

[TalkingDog]

32. 3 Citgo stations in my lil town. Cheap gas too.

I frequent them whenever possible.

My Favorite Master Artist: Karen Parker GhostWoman Studios

[Liberal In Texas]

23. Here's your answer RWers to the stupid statement of, "WHO CARES ABOUT THE WHAT THE REST OF THE

WORLD THINKS!"

These people are ruining our country.

Impeach now!

[Lorien]

26. Can't blame him

the dollar is more than a wee bit unstable at the moment....

[JNelson6563]

27. Ruh-roh

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2993638&mesg_id=2993638

Check out the stock watch thread's OP for today and you'll see the future's charts reflect the real time futures trading. Hit refresh if time under chart doesn't coincide with real time.

I think we could be in for more of Mr. Toad's wild ride tomorrow.

Julie

[ThomWV]

28. And not a word about this on the news - K&R!

[MisterHowdy]

30. exactly!

DU is the only place I've heard of this.
Craziness.

[Lone_Star_Dem]

29. I don't see where they had anything to lose and they did have much to gain

Venezuela can get away with doing something such as this on this scale which other countries could not.

That's the perk that comes with not being beholden to the US and our falling dollar.

[Wiley50]

31. Expect Your Local Citgo Station To Close Down

But I really really respect the set of huevos that guy has!

[CGowen]

34. Report: Former Fed Boss Says Euro Could Replace U.S. Dollar As Favored Reserve Currency

FRANKFURT, Germany (AP) -- Former U.S. Federal Reserve chairman Alan Greenspan said it is possible that the euro could replace the U.S. dollar as the reserve currency of choice.

According to an advance copy of an interview to be published in Thursday's edition of the German magazine Stern, Greenspan said that the dollar is still slightly ahead in its use as a reserve currency, but added that "it doesn't have all that much of an advantage" anymore.

The euro has been soaring against the U.S. currency in recent weeks, hitting all-time high of $1.3927 last week as the dollar has fallen on turbulent market conditions stemming from the ongoing U.S. subprime crisis. The Fed meets this week and is expected to lower its benchmark interest rate from the current 5.25 percent.

Greenspan said that at the end of 2006, some 25 percent of all currency reserves held by central banks were held in euros, compared to 66 percent for the U.S. dollar.

In terms of being used as a payment for cross-border transactions, the euro is trailing the dollar only slightly with 39 percent to 43 percent.

...

http://biz.yahoo.com/ap/070917/germany_greenspan_euro.html?.v=1

[lonestarnot]

35. a silent nuke.

[KillCapitalism]

37. Nice.

I hope all the countries of the world dump the dollar.

[spindoctor]

38. Coming from Chavez one could wonder but in itself its a logical and sensible move. n/t

[endarkenment]

46. "Coming from Chavez one could wonder"? Why?

[Vidar]

39. Good move by Chavez.

[OmmmSweetOmmm]

41. Unfortunately that was the was the move that Saddam was going to make just before our invasion. nt

[Vidar]

48. Well, after our upcoming Iran fasco, our South American invasion

armada will consist of a few coast guard vessels & the auxiliary contingent of the American Legion.

[Martin Eden]

42. Shucks ... now we have to invade Venezuala

When Saddam changed his oil sales from dollars to euros, he sealed his fate.

[EnviroBat]

43. See kids what happens when you are viewed by the rest of the world

as a warmongering nation? We are truly fucked, and lost...

[Anarcho-Socialist]

44. It's a sound economic move

Diversification reduces risk. Also given the hostility shown by the US government and the US media to the Venezuelan people, there's no need for Venezuela to subsidise the US deficit through seigniorage.

[DianaForRussFeingold]

45. Monkey See -- Monkey Do!

:think: Is it true Sadam was trading oil in Eros instead of the dollar? Is it true Iran has dumped the dollar? Is it true that Norway and Russia already accept payments in Euros for oil? Is it true that OPEC is considering switching to a Petro-Euro and dumping the dollar? Is Cheney Betting On Economic Collapse?- http://www.counterpunch.org/whitney07052006.html Cheneys betting on bad news?-
http://articles.moneycentral.msn.com/Investing/Extra/CheneysBettingonBadNews.aspx :scared:

[JCMach1]

47. Real chance UAE moves to currency basket in next 6months

The dollar is not healthy...

[Disturbed]

49. The Federal Reserve Is A privately Owned Corporation

Who actually owns the Federal Reserve Central Banks? The ownership of the 12 Central banks, a very well kept secret, has been revealed:. Rothschild Bank of ...


http://www.apfn.org/APFN/fed_reserve.htm

[BelgianMadCow]

52. that is very interesting!

thanks for the link, bookmarked it. Should look up the same for the ECB.

[Flabbergasted]

50. The entire Middle East will move in concert when they all agree.