Friday, March 03, 2006

Iran's Oil Bourse

The warning signs are rising again that the Bush administration really does intend to initiate another aggressive action against Middle East oil giant, this time Iran. Part of the problem most Americans have imagining such a drastic scenario is the lack of information about the real cause of such action perhaps because the situation is too dire for the media to handle. I am referring to the plan by Iran to open an Oil Bourse, or oil exchange of its own.

As explained by Mike Whitney on Op-Ed News, "The Bush administration will never allow the Iranian government to open an oil exchange (bourse) that trades petroleum in euros. If that were to happen, hundreds of billions of dollars would come flooding back to the United States crushing the greenback and destroying the economy. This is why Bush and Company are planning to lead the nation to war against Iran. It is straightforward defense of the current global system and the continuing dominance of the reserve currency, the dollar."

Whitney goes on to explain that because the world oil market is denominated in U.S. dollars, oil nations hold enormous dollar reserves, which forces them into the U.S. orbit. Add to this the huge national debt now in excess of $8 trillion and continuing record trade deficits, which also force nations like China and others to hold huge reserves in dollars, and it becomes clear why the U.S. is worried about Iran’s bourse.

If oil-producing nations were to suddenly no longer have to hold their dollar reserves, it could start a stampede of dollars rushing back into the U.S. The result could either be hyperinflation or depression, depending on whether the Fed decides to raise interest rates to leading to recession, or print more money, leading to hyperinflation.

Thus, the war rumblings echoing throughout Washington have nothing to do with Iran’s supposed nuclear development plans. That is just the cover story, as countless analysts have pointed out that it would be at least 10 years before Iran might have a bomb. Iran poses no threat to anyone, not even Israel, which has over 200 (unacknowledged) nuclear weapons of its own.

As for the United States, which has launched unprovoked attacks on both Afghanistan and Iraq, not only is there no threat, but any thinking person must reflect back on the identical situation that prevailed in 2002 and 2003, when Americans were told the same story about the growing threat of Iraq’s WMDs. In fact, no WMD were ever found. The whole threat was a ruse, an excuse for the Bush administration to begin its Middle East aggression, and for similar reasons: Iraq, too, had threatened to switch from dollars to Euros. Such open defiance of United States hegemony could not be allowed to stand then, and it appears it will not be allowed to stand now.

The only question is, are Americans and the world dumb enough to be fooled into yet another phony war? Stay tuned. Or better yet, let Washington know that you object to their plans, by going to the web site Stop War on Iran.

Note: For additional information and some historical tid-bits read a Krassimir Petrov, PhD article. Dr. Petrov teaches Economics at the American University in Bulgaria.


Blogger 6thCitizen said...

What's the value of a euro when there is no European Union? I also wonder if American's are dumb enough to fall for your crap about an "unprovoked" attack on Afghanistan. No, actually, I don't, most people outside of the DU see that statement for what it is.

8:42 PM  

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