amigocabal

(Canada should take a hint, since 22% of US oil needs come from Canada, and
US dollar is becoming worthless)

Sell oil for gold, Mahathir says
Monday, January 19, 2004 Posted: 0024 GMT ( 8:24 AM HKT)


JEDDAH, Saudi Arabia (Reuters) -- Former Malaysian Prime Minister Mahathir
Mohamad has told Saudi Arabians they should sell oil for gold, not U.S.
dollars, to avoid being "short-changed" by a decline in the U.S. currency.

"The price of oil is $33, but the U.S. dollar has declined by 40 percent
against the euro so you're effectively getting $20," Mahathir told an
economic conference in Saudi Arabia's Red Sea city of Jeddah on Sunday. "So
you're being short-changed."

Saudi Arabia, the world's biggest oil exporter, has justified higher world
oil prices by saying they are necessary to compensate for the slide in the
U.S. currency.

Mahathir, who retired last October, spent much of his time in office
upsetting Western governments and defying their economic orthodoxies. But he
became a respected spokesman in Islamic and developing states and received
an ovation in Jeddah.

He suggested countries tally their total annual imports and exports and
settle the difference at the end of the year in "gold dinars."

Sounding a discordant note, Mahathir also warned Saudi Arabia against
rushing to join the World Trade Organization (WTO), saying it was not
necessarily a positive move.

Saudi Trade Minister Hashem Yamani said on Saturday his country had narrowed
differences with the United States that were holding up accession to the
organization and said he wanted to join "tomorrow."

"Everybody should be careful before joining the WTO because it is not all
positive. It can be very negative if you don't handle it properly," Mahathir
said. "They try to impose their agenda without regard for some other
countries."