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Title: Iran dumps U.S. dollar for oil trades
Source:
CNN (AP)
URL Source: http://edition.cnn.com/2008/BUSINES ... ap/index.html?iref=mpstoryview
Published: Apr 30, 2008
Author: Associated Press
Post Date: 2008-04-30 17:18:10 by aristeides
Keywords: None
Views: 93
Comments: 5
Iran dumps U.S. dollar for oil trades TEHRAN, Iran (AP) -- Iran, OPEC's second-largest producer, has stopped conducting oil transactions in U.S. dollars, a top Oil Ministry official said Wednesday, in a concerted attempt to reduce reliance on Washington at a time of tension over Tehran's nuclear program and suspected involvement in Iraq. Iran has dramatically reduced dependence on the dollar over the past year in the face of increasing U.S. pressure on its financial system and the fall in the value of the American currency. Oil is priced in dollars on the world market, and the currency's depreciation has concerned producers because it has contributed to rising crude prices and eroded the value of their dollar reserves. "The dollar has totally been removed from Iran's oil transactions," Oil Ministry official Hojjatollah Ghanimifard told state-run television Wednesday. "We have agreed with all of our crude oil customers to do our transactions in non-dollar currencies." Iranian President Mahmoud Ahmadinejad called the depreciating dollar a "worthless piece of paper" at a rare summit last year in Saudi Arabia attended by state leaders from OPEC countries. Iran put pressure on other OPEC countries at the meeting to price oil in a basket of currencies, but it has not been able to generate support from fellow members -- many of whom, including Saudi Arabia, are staunch U.S. allies. Iran has a tense relationship with the U.S., which has accused Tehran of using its nuclear program as a cover for weapons development and providing support to Shiite militants in Iraq that are killing American troops. Iran has denied the allegations. Iranian oil officials have said previously that they were shifting oil sales out of the dollar into other currencies, but Ghanimifard indicated Wednesday that all of Iran's oil transactions were now conducted in either the euro or yen. "In Europe, Iran's oil is sold in euros, but both euros and yen are paid for Iranian crude in Asia," said Ghanimifard. Iran's central bank has also been reducing its foreign reserves denominated in dollars, motivated by the falling value of the greenback and U.S. attempts to make it difficult for Iran to conduct dollar transactions. U.S. banks are prohibited from conducting business directly with Iran, and many European banks have curbed their dealings with the country over the past year under pressure from Washington. However, the U.S. has been wary of targeting Iran's oil industry directly, apparently worried that such a move could drive up crude prices that are already at record levels. Iranian analysts say Tehran can withstand U.S. pressure as long as it can continue its oil and gas sales, which constitute most of the country's $80 billion in exports.
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#1. To: aristeides (#0)
"It does not take a majority to prevail, but rather an irate, tireless minority, keen on setting brush fires of freedom in the minds of men." -- Samuel Adams (1722-1803)‡
Lew Rockwell agrees with you: Casus Bellum (sic).
To reason, indeed, he was not in the habit of attending. His mode of arguing, if it is to be so called, was one not uncommon among dull and stubborn persons, who are accustomed to be surrounded by their inferiors. He asserted a proposition; and, as often as wiser people ventured respectfully to show that it was erroneous, he asserted it again, in exactly the same words, and conceived that, by doing so, he at once disposed of all objections. - Macaulay, "History of England," Vol. 1, Chapter 6, on James II.
Next thing you know, Jed Clampett will be taking his money out of Mr. Drysdale's bank.
Most likely, but do you know why? It's because we dumped all links to gold under Nixon, and went to a fiat currency. But, like so many other things America does, we didn't go to a "pure" fiat currency, we went to a "sort of" fiat currency that was actually still backed by a commonly traded, desirable commodity. However, instead of gold, the new commodity backing the dollar was oil. This began the era of the "petrodollar". Perhaps now it becomes more clear as to why America spends more on its military as the rest of the entire world COMBINED? That way we have a convincing bludgeon to hang over the heads of the rest of the planet, compelling them to accept dollars for their oil and establishing the global hegemony of the dollar. And now it becomes more clear as to why we had to invade Iraq (when Saddam started selling Iraqi oil for Euros instead of dollars) and why we now are compelled to go to war with Iran. Eventually the entire world is going to get very tired of our nonsense.
#2. To: ghostdogtxn (#1)
#3. To: aristeides (#0)
I've already said too much.
#4. To: ghostdogtxn (#1)
Of course you realize, this means WAR.
 | Gold and silver are REAL money, paper is but a promise. |
#5. To: ghostdogtxn (#1)
Of course you realize, this means WAR.
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