GCC Currency? bring it on.

This seems to be a very sensitive topic.. everyone is bombarding me with questions and ofcourse a fierce resistance from SNP, god bless her.. here is what happend and I hope you comment on it. SNP says: read my comment.. SNP says: i say the exact same thing Genesis says: I read it Genesis says: but the euro was never pegged to another currency Genesis says: it has always been floating SNP says: yes. thts bcoz the DM and Fr Fr were strong currenciues on their own SNP says: fer the euro.. it was more a case of synchronizing the cycles Genesis says: exactly Genesis says: if they remove the peg to the dollar now.. the currencies can support themselves knowning that in the past couple of years most of the governments are generating surplusses.. Genesis says: for the time being.. SNP says: what abt teh big divide in variables such as inflation SNP says: i think inf is way higher in countries like saudi n qatar Genesis says: that's what I was saying.. by economic coordination/integration Genesis says: do you think the inflation rate is the same in european countries? SNP says: obviously not! Genesis says: so.. SNP says: but they have had experience in floating currencies n managing the float! Genesis says: the forces of the market determine that. SNP says: ideally... SNP says: but not really Genesis says: well.. ofcourse.. SNP says: how many currencies are not a managed float.. SNP says: of all the central banks in teh region, which has realll experience in managing the float of their own currency? Genesis says: none has a floating currency SNP says: EXACTLY! SNP says: so i believe tht there are 2 options SNP says: you either wait for the currencies to begin their individual floats... Genesis says: which is never SNP says: or.. u unify the currency, started by a dollar peg... SNP says: n gradually phase off Genesis says: or pegging to gold.. Genesis says: and since all that is happening.. let's propose a peg to Oil prices LOL SNP says: oh cmon.. gold backed currencies dont happen nemore! SNP says: ur very funny Genesis says: lol Genesis says: bottom line...? SNP says: i think tht initiallly a dollar peg is a good idea.. Genesis says: but there is no such thing as Gradually unpeg it... you either peg or you don't peg! SNP says: but to gain coz of the oil price advantage we need to be an independent currency, cos the world will face cost push pressures.. esp the states.. n we don wanna be riding tht wave wen it hits us! SNP says: i think managing a float, and unifying (which is essentially a 2 pronged process is too hard) SNP says: phase 1- work on coordination SNP says: phase 2- work on managing the currency Genesis says: that's what I'm saying.. but I don't agree with pegging as a start!.. SNP says: hmm.... SNP says: ok.. so what do u suggest? Genesis says: floating.. day 1 SNP says: i disagree Genesis says: why do you disagree? SNP says: i told u y i disagee.. i think its too much to handle all at once... SNP says: sure Genesis says: no it's not.. you're talking about 6 countries SNP says: ur also talking abt unchartered waters Genesis says: yes.. but you know if they need help they can get it.. Genesis says: if it was to be fixed.. then it should be fixed-but-adjustable Genesis says: as in pegged to the dollar.. SNP says: eh? Genesis says: well.. that's how kuwait is doing it now Genesis says: within a certain percentage SNP says: explain tht to me Genesis says: hold on.. let me find you an article Genesis says: http://www.cbk.gov.kw/WWW/exchange_rates.html Genesis says: it's called a conventional peg Your Comments Please.