RE: Jim Sinclair InfoMail : ...Sinclair is an idealogue and idealogues inevitably get the exact opposite results of what are promised.
For example look at the idealogy that said privatizing and deregulating the energy sector would give us better accountability, more supply and lower prices which kick start the whole economy
what we got was enron, brown-outs and black outs, skyrocketing prices...and it dam well newar bankrupted California
Your first mistake is to believe that the west will just roll over and let some sheiks brings the west down in a crumbling heap....remember it is AMERCICAN tanks that keep the royal family in power....and the force that is currently being built up to invade Iraq can instantaneous be turned towards Riddyah
Indeed the hawks like perleman would be jumping wit glee because they would have all the justification they need to take the whole place over
If gold becomes equated with the money of the "enemy" the the current administration can do anything it wants. Indeed the mover to demand gold for oil would be seen as a direct attack on the west. even the europeans would forgo any restraint shown....extortion makes people really p!ssed of and the arabs have yet really seen what happens when western countries go to total war...there would be no more polite posturing,...between Isreal, NATO and the US they would just lay waste to the whole #$@ mess and take over
AS for gold what would happen in reality is the realization of the very worst paranoiac nightmares for the gold bugs.
The west would freeze every ARab asset held in western banks. they would freeze trade on gold....they would take over every gold mine in the sake of national security, they would not only consfiscate gold, but anyone buying gold would be seen as abetting the enemy,,,in much the way they say that anyone buying drugs is supporting terrorists
gold would cease to be a trading vehicle
the other things is the saudei royal family needs our money even more thatn we need thier oil and again only thorugh america are they kept from being overthrown and dragged through the streest by a religious mob
And when the oil runs out if all they have to show for it is a pile of gold then the middle east will become meaningless in the global scheme of things. oil is needed to power everything we have.....gold is not an essential ingredient for anything even jewelry...or even as a precious metal, as a store of value of last resort could be undertaken by platinum or silver
If the arabs don't use this oil wealth to transform themselves into a secular liberal society, that can create and establish export industries then they will go into the dustbin of history as a feudal agricultural society with afew fat cats selling of thier gold bars to pay for a western lifestyle while the rest of the population bobs their head up and down while reading the koran like a bunch of illeterate superstitious idiots