March 20th Iran switches to the PetroEuro: countdown to WWIII?

[thumperton]

read this article written 7 months ago:

We are seven months away from a history-making event.

On March 20th, 2006, Iran is planning to open an International Oil Bourse (market) for the express purpose of trading oil priced exclusively in Euros. The world currently does all oil trades in US dollars, commonly referred to as the petro-dollar. Introducing an alternative currency that directly competes against the US dollar will facilitate many global economic changes.

The US, of course, stands to be the most affected. Up until now, the Americans have been able to maintain a high demand for their currency due to its role in purchasing the world's primary energy resource. This demand has allowed the US to mushroom its debt to record levels supported by the selling of US treasury bills to foreign countries. How will the US continue to operate if countries stop floating their debt and turn instead towards the Euro?

Evidence of the US acting out of concern over their dollar hegemony can be seen in the war with Iraq. In September 2000 Iraq began selling all oil exports in euros. The euro then increased in value which added much profitability to European operations. The US invaded and shortly thereafter (four months to be exact) reverted all Iraqi oil trades back to the US dollar as well as nullifying previous foreign contracts. It has been surmised that the US invaded Iraq not just to control oil reserves but also to protect its all-important petro-dollar.

Fast-forward to the present day situation with Iran, a country being victimized through a US smear campaign. President Bush has continuously tried to promote Iran as an “axis of evil” country through accusations that Iran secretly' tried to develop nuclear weapons and harbors terrorists. To date, none of these claims have ever been substantiated.

http://republic-news.org/archive/120-repub/120_crawford.htm

 

[simplicity]

I remember when this idea was originally being considered. The U.S. dollar was declining most would say dramatically compared to other currencies. So those holding large amounts of U.S. dollars were upset by the high level of instability. Even myself I was getting sideswiped. I would make money on Lowes or Home Depot on one hand and then lose it in the currency exchange.

So there are many practical reasons to switch to Euros. I'm sure some currency traders had a field day during all the instability. In return the world community has reduced the value of the U.S. dollar as a peg of value.

 

[thumperton]

what would this mean in practical terms? would it crash the American economy? Cause a depression?

 

[Harpuia]

what would this mean in practical terms? would it crash the American economy? Cause a depression?

I'd say it'd more make people lose confidence in the US dollar than anything else... nothing serious.

 

[simplicity]

It shouldn't have much of an impact. It's more psychological and symbolic.

If Canada gave up its currency and adopted the US dollar as its basis, not too much would change from a day-to-day standpoint. But we would have less sovereignty over our own monetary affairs.

 

[CCGirl]

I have been watching this closely for several years now. It is clear that there is some link to countries adopting the Euro for Oil sales, and which countries the USA chooses to marginalize and slander.

Good examples so far are Iraq, Venezuela, Iran....

 

[Donkeytron]

I have been watching this closely for several years now. It is clear that there is some link to countries adopting the Euro for Oil sales, and which countries the USA chooses to marginalize and slander.

Good examples so far are Iraq, Venezuela, Iran....

great countries, all of em!

 

[CCGirl]

great countries, all of em!

Yes!

 

[Heiroglyph]

Makes no sense. WHat do we care what currency Iran trades in:? It's not like they have to pay us royalties on it.

 

[burrow_owl]

I'd say it'd more make people lose confidence in the US dollar than anything else... nothing serious.

Remember, we're not on a gold standard: confidence is all we got.

Less blithely, our economy is based on consumer spending and real estate. We're basically able to retain our high standard of living because other countries need our dollars, since important commodities (like oil) are denominated in dollars. Because they (notably Japan and China) keep buying our dollars, they stay at a high value, meaning we in the states have a lot more purchasing power. If other countries don't need our dollars, they become cheaper relative to tangible goods, and prices here will skyrocket.

With inflation comes instability, and capital inflow will slow down as countries stop investing here (either through corporations, bonds, or real estate). Since our economy is based on this capital inflow, if Iran's switch to euros significantly affects the price of the dollar, our economy could be severely disrupted.

The "if" there is the question. We still have a pretty strong manufacturing base, so it may be that the switch won't be as painful as the dismal scientists predict.

 

[Glaz]

Yes!

No

 

[Quantos]

with Iran, a country being victimized through a US smear campaign

?? Iran is being victimized ?

 

[Donkeytron]

?? Iran is being victimized ?

I know. Were just making up the marches promising the death to the great satan that have been going on for 30 years.

 

[Glaz]

Its not a legitmate news source so don't take it too seriously.

 

[ACougar]

Its not a leigitmate news source so don't take it too seriously.

The story is real and the oil bourse represents a very real threat to our economy, however that threat isn't just days away.

http://www.iranian.ws/iran_news/publish/article_14125.shtml

Despite repeated reports over the past 18 months or so that the planned bourse would finally open for business on March 20, 2006 -- and go head to head with the New York Mercantile Exchange and the ICE Futures Exchange in London -- the start date has been postponed by at least several months and maybe more than a year.

"In the middle of 2006, we are able to start the bourse," Mohammad Asemipur, special adviser on the project to Iran's Oil Minister, said when reached in Tehran. The plan is to trade petrochemical products first, with a crude oil contract coming last, a rollout that likely will take three years, he said.

"Oh, crikey, it's at a much earlier stage than people would think," said British consultant Chris Cook, who claims credit for coming up with the idea for the exchange in the first place and is a member of the consortium headed by the Tehran Stock Exchange that is charged with bringing the project to life.

"You can rest assured, there will not be a crude oil contract, Gulf-based, in my opinion, within a year -- and that would be really pushing it," Mr. Cook, a former director of ICE's predecessor, the International Petroleum Exchange, said when reached in Scotland.

 

[Donkeytron]

The story is real and the oil bourse represents a very real threat to our economy, however that threat isn't just days away.

http://www.iranian.ws/iran_news/publish/article_14125.shtml

Somehow I doubt its as serious as you say. Maybe if all oil was suddenly traded in a currency other than the dollar, then wed be in trouble.

 

[applepowerpc]

Iran can use whatever currency they want. Iran can also research whatever nuclear technology they want. Contrary to the U.S. empire's thoughts, Iran is a sovereign country and that is for them to decide--not us.

 

[Donkeytron]

Iran can use whatever currency they want. Iran can also research whatever nuclear technology they want. Contrary to the U.S. empire's thoughts, Iran is a sovereign country and that is for them to decide--not us.

No one said they couldnt trade oil in swaziland lilangenis if they want to. As for A-bombs, last I checked the whole world was more or less unanimous against iran having one.

 

[Glaz]

As for A-bombs, last I checked the whole world was more or less unanimous against iran having one.

Lol, I don't think some people realize that, they only think its 'America is an evil empire pushing its will on poor innocent Iran'. I guess it is easier to understand it that way.

 

[Steeleye]

The whole world is concerned about Iran’s potential acquisition of nuclear weapons. There is no ‘smear campaign’ against Iran: in fact, we’re not hearing a fraction of the facts about Iran that we should.

In Britain, the media has informed us of President Ahmadinejad’s comment that “Israel must be wiped off the map”. But it didn’t bother telling us that Ahmadinejad also stated in a speech that he intended to “end Christianity in Iran”, after which several pastors were arrested and tortured and at least one killed – his body dumped outside the family home. It didn’t tell us that Zoroastrian leader Korush Niknam was summoned before the Revolutionary Tribunal for objecting to the statement of Ayatollah Jannati that non Muslims “cannot be called human beings but are animals who roam the earth and engage in corruption”. I’ve just read Azar Nafisi’s book ‘Reading Lolita in Tehran’, in which she recounts how a young Bahai man of her acquaintance was given the body of his dead grandmother by a hospital, and had no legitimate way to bury her because the government had demolished the Bahai graveyards. Having looked into it, I‘ve found that the situation with Bahai graveyards was still the same last year, so I expect it’s the same now. How many people are aware of this?

In other words, Iran despises all non Muslims, home and abroad. We hear only the bit about Israel because it suits the agenda of the liberal media that Israel is somehow at the root of all conflict in the Middle East. This conveniently allows them to ignore the real culprit – radical Islam.