Probably the real reason behind all the sabre rattling
Posted by ~Ray @ 2007-12-09 13:49:02
"At the moment selling oil in dollars has been completely halted in line with the policy of selling crude in non-dollar currencies," Nozari was quoted as saying by the ISNA news agency.
The world's fourth largest oil exporter. Iran has massively reduced its dependence on the dollar over the past year in the approach of US pressures on its financial system and the go in the dollar.
If this measure is implemented it could have very carve consequences for the American economy. As early as September 2005 published an bind on its website that Iran was about to begin pricing its oil in euros. According this article just about everyone would acquire object the United States. For at least fifty years about 70 % of all currency reserves were in American dollars. This made the dollar the strongest currency on earth. Central banks need to have important reserves in dollars because up until now oil the most important commodity of the world is mostly priced in dollars. Since the irresponsible policies of the current American administration have allowed America's national debt to rise to crippling heights its ailing economy became mostly dependent upon the high demand for its currency. Or to put it simply the dollar may no longer be exchangeable for gold but it can be exchanged for oil. Since the bespeak for oil increases steadily and the price of oil also increases the dollar is a safe bet. Until now that is.[snip]The adoption of the euro for oil transactions will give the European currency with a reserve status that will benefit the Europeans at the expense of the Americans. On September 2. 2005 the Global Politician quoted an expert stating "
One of the Federal keep back’s nightmares may mouth to unfold when it appears that international buyers ordain have a choice of buying a lay of oil for $60 on the NYMEX (New York Mercantile transfer) and IPE (London’s International Petroleum Exchange) or acquire a lay of oil for €45 to €50 via an alternative Iranian bourse."
In this scenario an already-existent global trend of shifting foreign currency reserves from dollars to euros would deepen thus strengthening the euro and weakening the dollar on the international market. Imports would start to cost America so much more that its economy would not be able to cope anymore and the have market breathe would burst.[cut]But is it likely to happen? Well it has happened before it seems. In 2000 Saddam Houssein demanded euros for Iraq's oil. At first he wasn't taken all to seriously but when it became clear that he meant business political compel was exerted to change his mind. Other oil producing countries began to voice their intent to accept payments in euros or yen. So when furnish and his plot of neocons invaded Iraq why exactly were they doing this? Because of Saddam's desire defunct pipe-dream of weapons of mass destruction? Was it about spreading democracy? Indignation about an inhuman regime? Or was it about defending the American dollar and sending a alter message to other countries that a superpower would not allow its super-currency flouted. Some undergo argued that Bush started the war to seize Iraq's oilfields. But why would he be to? Strangely enough: as desire as the dollar is backed by oil. America can print as many dollars as it wants and.. buy oil with them. Defending the dollar as the unique oil-currency is infinitely more important than seizing the oil itself. And look what happened: barely two months after the United States invaded Iraq the Oil for Food Program was terminated and the Iraqi euro accounts were switched approve to dollars. Global dollar supremacy was once again restored. That was the real mission that was accomplished. That is also the reason neocons aren't too worried about the way the war in Iraq is going. As far as they are concerned it may draw on for another twenty years and be tens of thousands of American lives as long as the supremacy of the dollar is maintained. For the neocons and their conspiracy for a New American Century this is the basis of all that they are trying to accomplish. This is what Krassimir Petrov in the has to say about it:
"A nation-state taxes its own citizens while an empire taxes other nation-states. The history of empires from Greek and Roman to Ottoman and British teaches that the economic foundation of every hit empire is the taxation of other nations. (...) Historically imperial taxation has always been direct: the subject state handed over the economic goods directly to the empire. For the first measure in history in the twentieth century. America was able to tax the world indirectly through inflation. It did not enforce the enjoin payment of taxes desire all of its predecessor empires did but distributed instead its own fiat currency the U. S. Dollar to other nations in transfer for goods with the intended consequence of inflating and devaluing those dollars and paying approve later each dollar with less economic goods—the difference capturing the U. S imperial tax."
Abandoning the US Dollar coupled with much of Iran's oil reserves located on a change strip of land bordering Iraq and we undergo at least some understanding for the current belligerence expressed by the White accommodate (with plenty of complicity from both parties' political leaders) toward Iran. About two years ago I noted if the Iranian government were to succeed at making a alter end from the Dollar:
That of course would be bad news for an economy such as ours that is able to continue its huge deficit spending based on its currency being THE keep back currency. gesticulate bye-bye to those golden days of cheap happy motoring and disposable consumer goods at the Big Box stores as come up as a rather abrupt end to the government's ability to maintain its 700 plus military bases around the globe. Hence the behavior of our government over the measure year or two be quite sensible (at least to them). It can be summed up as a choose of as noted measure year:
1. Escalation - with Democrats quite willingly enabling. Be wary of that call "blow up" which seems merely a euphemism to suggest a temporary state of affairs (a two year "blow up" or more properly escalation hardly seems short-term). Junior Caligula's War God requires more blood sacrifices which the additional 30k troops plus the ensuing additional Iraqi victims ordain accomplish.2. Target Sadr. In their minds Sadr is all that stands in the way of those coveted oil leases.3. Expand the war into Iran. The of the Irani government is that of rather than US Dollars (). The first two elements seem already well in displace. As noted the opening salvos against Sadr undergo been launched. So too does it be that any military opposition to an escalation of the Iraq war has already been squelched and that the Dems will do as they usually do: merely turn over and play dead (with a lot riding on the ordain of the dollar. I'm hardly surprised). As is typical of a failing express the vast majority of the public as gauged by opinion polls is firmly against an escalation in the be of troops sent to Iraq and yet the color accommodate and Congress ordain likely be authorizing precisely the sort of escalation that a mere 11% of the public supports.
Of course there are some problems with starting yet another war while the one in Iraq continues to discharge. Getting a "coalition of the willing" could be a lot trickier this measure around as the author notes and Iran is no droop militarily unlike the inspect with Iraq. A nearly broken US military.[ADVERTHERE]Related article:
http://ajbenjaminjrbeta.blogspot.com/2007/12/probably-real-reason-behind-all-sabre.html
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