yogiudo

Gulf Countries Urged to Switch Currency Peg from Dollar to a Basket With Oil

It is a nice idea - however it will upset the worlds largest super power if you "peg" them out.

And as history has shown - super powers get angry and blow stuff up occassionally.

So they might outpeg the dollar and this could cause them to get pegged with a minuteman missile.

Or maybe they will go full tilt w/ the worlds flour & corn.
I heard people in Haiti are eating sand and OIL mixture..

Ask Norm Chomsky.

My feeling is that they don't have that option unless they can back it up.

The Gold-Oil Ratio Approaches All-time Lows

I had to interject here - Gold is NOT a store of energy.

Not unless we learn how to produce nuclear fission from Gold.
An energy store is exactly that. An energy store. There is no way to run a car on gold, or pull a wagon.

It takes alot of energy to extract it, however as an Engineer you should know that you can not get that energy back out of Gold.

Gold is, and will continue to be a form of money. Don't confuse yourself or others into thinking for one moment that gold is a store of energy, because it is not. Gold is metal. Uranium is also a metal, however it is a store of energy because we have technology readily available to convert uranium into energy.

Gold will however be an execellent hedge when the dollar, euro and fiat currencies begin to collapse due to greedy bankers.