Earlier this week there were reports coming out that Arab oil sheiks, the Russians, and the Chinese were all conspiring to stop using the United States dollar to set the value of a barrel of oil. Of course, if this were to really happen it would really hurt the value of a dollar across the globe.

Remember last week when I talked about what happens when someone give a false story to the press? That’s what is going on this week and it’s causing a serious decline in the value of a dollar and a serious increase in the cost of gold.

Even though someone as high up as the Saudi central bank head and U.S. officials have tried to bunk the rumors, the dollar has definitely taken a hit this week.

The website drudgereport.com quickly amplified the impact of the story with a headline atop the site: ARAB STATES LAUNCH SECRET MOVES WITH CHINA, RUSSIA, FRANCE TO STOP USING DOLLAR FOR OIL TRADING …

“You read that story, and you do two things: You sell the hell out of dollars and you buy gold,” said Les Alperstein, president of the financial research firm Washington Analysis. “The story has a lot of credibility, with some caveats.”

So, the fall of the dollar could be the key as to why the price of gold is now at record highs. At $1,050 a try ounce, investors are selling the dollar and buying gold just as Les Alperstein said.

No one knows who exactly leaked the fake information to the press. Many are thinking it had something to do with gold traders. Of course, your suspicions typically turn to the source who stands to make the most from the information, however false it may be.

Prior to the recession, the value of the dollar would not be as damaged by an article such as this one. However, with how poor our economy is doing and also how watered down the value of our dollar has become, it is quite the hit to the value of the greenback.

Robert Fisk wrote the original article and he listed very vague sources in his article. No one has been able to locate the exact sources and even people and administration from the banks he claimed gave him the information in the article have said that the story is completely false.

So, who’s got their hand in Robert Fisk’s pocket?

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