28 February 2008

alan greenspan tells gulf to drop dollar

as usual if americans want to get any relevant news we have to go outside the united states to get it.

alan greenspan was the longtime chairman of the federal reserve.

al jazeera excerpt:

Alan Greenspan, the former chairman of the US central bank, or Fed, has said that inflation rates in Gulf states, which are reaching near record levels, would fall "significantly" if oil producers dropped their US dollar pegs.

Speaking at an investment conference on Monday in Jedda, Saudi Arabia, he said the pegs restrict the region's ability to control inflation by forcing them to duplicate US monetary policy at a time when the Fed is cutting rates to ward off an economic downturn.

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