56 votes

UPDATE: Iranian oil bourse will start trading oil in currencies other than the dollar from March 20

“The dispute over Iran’s nuclear programme is nothing more than a convenient excuse for the US to use threats to protect the 'reserve currency’ status of the dollar,” the newspaper, which calls itself the voice of the Islamic Revolution, said.

http://www.telegraph.co.uk/finance/commodities/9077600/Iran-...

UPDATE:
03-17-20 SWIFT FREEZE "exclusion of Iranian banks from international financial transfer networks"
Israel Finance Minister: SWIFT decision may cause collapse of Iran's economy
http://www.haaretz.com/news/diplomacy-defense/israel-finance...

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Its funny when I see the date

Its funny when I see the date March 20 that when Greece and other bond expire. Its time to pay up.

Bill Gross is sweating bullets. The Status Quo is collapsing.

Well said!

Well, today's the day, folks! I don't know if anything will actually happen today, but this hits the nail right on the head, doesn't it!

From David Stockman, former Reagan budget director, to Fareed Zakaria:

"I think you can address this decisively by stop beating the war drums right now. And Obama could do that, and he could say the neocons are history.

The policy that they're talking about right now is the same thing we heard in 2001, 2002, and 2003. And he needs to clearly say that we're not going to attack Iran. We're not going to permit Israel to attack Iran. They are not part of the axis of evil. They're part of the axis of medieval.

In other words, these are backward people that aren't going to threaten the western world, and we need to get into a serious process of negotiation. If we do that, the price of oil will drop $30 within a few months, and all the speculators who are on the wrong side of the ship would learn a good lesson.

But as long as the war drums continue to beat, as they are now, we're going to see this kind of speculative fraud. It's not real. It's not a supply and demand world today."

"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

I thought Iran started with the bourse in 2008.

I have no doubt that this is the reason the war drums are pounding.

Same thing in Iraq where the Iraqi oil began trading in dollars immediately after Baghdad fell.

And Lybia after Quadifi proposed a new African currency based on gold.

So Iran has NOTHING to do with nukes.

This is about U.S. dollar hegemony - period.

There is a good book on this called "Petro-Dollar Warfare"

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

As usual, this is about private profit. Period.

Ahmadinejad is on record as saying that he favors transparency in the Iranian oil market. As anyone familiar with the City of London and Wall Street will know, transparency is the enemy of private profit, and it is this factor that was behind the delays in developing the bourse project.

However, we remain hopeful that the strategy we recommended, which is based upon (a) gradual and organic introduction of pricing built upon the neutral function of transaction registration and (b) a simple (and Islamically sound) partnership-based "clearing union" synthesis of bilateral trading and a multilateral guarantee, will in due course be taken forward.

One of the most interesting aspects of the process was that during our brief spell of contacts with decision-makers, some insight into current Iranian policy was possible - in particular, the nuclear question. In our conversations we were left in no doubt that it suits both the US and Iran for the issue to be seen to be that of the Iranian "threat" from nuclear weapons.

In fact the issue is a proxy for Iraq: try looking in the media prior to the events in Fallujah, Iraq, for anything more than desultory mention of this "issue". But once factions in Iran funded Muqtada al-Sadr to the tune of $50 million and the US body count started to rise, then the issue began to attain its current level of importance.

Now that pro-Iranian Shi'ite elements are taking a primary role in the emerging government in Iraq, we see the nuclear temperature rising further.

The realpolitik is of course that those in power in the US and Iran have the reason they give - and the real reason - for what they do: and for the US, the real reason is and has been for many years energy security above any other consideration.

- Chris Cook

http://www.atimes.com/atimes/Middle_East/HA21Ak01.html

Chris Cook, former director of the International Petroleum Exchange and an energy consultant, is the originator of the Iranian Oil Bourse project.

Cook's involvement in the Iranian Oil Bourse project stemmed from work he did in the late nineties on manipulation of the oil market by the intermediaries. As a result of the realisation of how the intermediaries were making the market more volatile than it needed to be, making money at both the producer and consumers expense, Cook wrote to the governor of the central bank of Iran proposing the creation of a Middle Eastern Exchange with its own benchmark price.

The Iranians liked the idea, the Saudis however couldn't support it due to US connections. After 9/11 the Saudi's withdrew their objections and in May 2004 Cook was invited to Iran's central bank to give a presentation setting out how an oil exchange might operate. Cook and his consortium got the contract to put it together. Difficulties arose however since the Oil Ministry didn't want transparency in the oil market, the current system not withstanding its flaws was making the Iranian elite lots of money.

http://www.energybulletin.net/node/19237

"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

This great article deserves

This great article deserves re-reading in these times... Just as reminder what has happened and as warning what probably will happen now.

The End of the Dollar Hegemony by Ron Paul - http://www.lewrockwell.com/paul/paul303.html

Thanks for the article.

That is a great article. It is amazing how he is able to read events and give a quality prediction of where we are headed... He spoke of war not only with Iran but also with Syria back in 2006. If people could do more thinking for themselves then Paul would win this election by the greatest margin in American history.

and another

http://www.energybulletin.net/node/7707

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul

It is time for Iranian people

to overthrow mullahs. Everybody will be better off. We cannot always put a finger on 1953. Young people should not be cursed for what their grand fathers have done.

Cyril's picture

Absolutely

Yes, for the Iranian people to do so.

If, when, and the way they want to.

Now, that said:

I didn't know Mr. Obama was Iranian.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Well said!

Well said!

Cyril's picture

So, let me get this straight (though I may be mistaken):

So, let me get this straight (though I may be mistaken):

1. step one: Iran decides not to trust the US Dollar alone anymore to trade oil, effective March 20
(my own guess : they are also, likely, seriously annoyed now with the international sanctions that have been going on for years already against them) (Telegraph.co.uk, Feb. 12th, 2012)

2. step two: Obama and his allies (E.U., Canada, Israel) decide unilaterally to remove the Iranian banks from the SWIFT network (last week + this week end)

3. step three: Israel applause (today Sunday)

4. step four: Obama releases an Executive Order with a broad scope, including energy supplies related resources and administrations and types of stakeholders in the US (two days ago, last Friday)

5. question I'd ask: Butt-Covering-OP ongoing?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Uhoh.. One down vote?

Looks like I was mistaken, dang... Will read with interest where I was so.

(Well, I'm almost always right :p ;)

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

ecorob's picture

ah, a tuesday...

the neocons love tuesdays!

a false flag event in the making?

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
9/11 Truth.

Truthbearer's picture

False flag events....

...also happen around 9:00am so they can milk the news week with lots of propaganda and fear food.

Apple, according to your article,

"Iran has the third-largest oil reserves in the world and pricing oil in currencies other than dollars is a provocative move aimed at Washington. If Iran switches to the non-dollar terms for its oil payments, there could be a new oil price that would be denominated in euro, yen or even the yuan or rupee."

Much ado about nothing, Ahmadinejad, because according to

my sources, Crude oil prices are dropping as US crude

supplies are increasing. There are two reasons for crude

being down. The first is that Saudi Arabia has agreed to

increase production to off set the losses in the market of

Iranian oil due to the sanctions. Predictions of $112 a

barrel oil were based on part on speculators betting on

shortages due to Iranian oil being out of the market in

Europe. When Saudi Arabia agreed to increase production

at the urging of the Obama administration and the EU, this

filled the gap. The other reason is that US inventories

have increased and demand has decreased. Domestic oil

production has increased each year under the Obama

administration, and that oil is beginning to pile up.

So don't worry about Ahmadinejad's threats, folks, because

we simply don't need his oil anymore!

http://www.examiner.com/economic-policy-in-national/oil-

prices-drop-gas-prices-may-fall

"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

Maddy, If countries don't need US Dollars to buy oil.

then the US Dollar loses value. It is not about oil demand, or supply, its about the US Dollar demand and supply.

Cyril's picture

Yeah, if it were even possible the USD loses even more of

... its ACTUAL value.

Which, I am pretty sure is known to NO ONE on earth, while without any doubts ... close to zero, already.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Apple, that reasoning is the propagation of a myth.

In June of 2001, Chris Cook, a former director of the International Petroleum Exchange, pointed out in a letter to Dr. Mohsen Nourbakhsh, the then governor of the Iranian central bank, that "the structure of global oil markets massively favors intermediary traders and particularly investment banks, and that both consumers and producers such as Iran are adversely affected by this." In that letter, Mr. Cook also recommended that Iran consider as a matter of urgency the creation of a Middle Eastern energy exchange, and particularly a new Persian Gulf benchmark oil price, and continued, "It is therefore with wry amusement that I have seen a myth being widely propagated on the Internet that the genesis of this "Iran bourse" project is a wish to subvert the US dollar by denominating oil pricing in euros.

As anyone familiar with the Organization of Petroleum Exporting Countries will know, the denomination of oil sales in currencies other than the dollar is not a new subject, and as anyone familiar with economics will tell you, the denomination of oil sales is merely a transactional issue: what matters is in what assets (or, in the case of the United States, liabilities ) these proceeds are then invested."

http://www.atimes.com/atimes/Middle_East/HA21Ak01.html

"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

This author, Mr. Cook

Makes up facts, "It is therefore with wry amusement that I have seen a myth being widely propagated on the Internet that the genesis of this "Iran bourse" project is a wish to subvert the US dollar by denominating oil pricing in euros."

Iran does not care about Euro's it cares about its own currency. The issue is, whomever has a monopoly on the sale of oil, the FED, would lose that monopoly. The monopoly of the sale of oil in dollars gives great advantage, power and wealth to the FED and its owners.

Cyril's picture

Guys, I think it's a bit a waste of time nitpicking there, and

whatever we'd advance, would just turn us to be all wrong.

I mean: re: the impact of the USD losing its privileged position to trade oil.

Before you shoot point blank at what seems an empty statement:

actually I have zero competence whatsoever in the subject on the premises we'd be talking of a "normal" trade currency.

BUT ! And that's the monstrous catch:

We are talking about the USD ... in 2012.

That thing where a single country has developed its own debt in the dozen TRILLIONS with a growth between the QUADRATIC function and the EXPONENTIAL.

The complete out of hands printing of which is in mad men's hands... Or rather, wallets.

My guess is in such orders of magnitude, it's not so much the direct impact of Iranian oil leaving the USD waters, re: its face value, that makes the SWIFT gang angry:

but more likely, rather, the derivative fees that oil transactions incur, by very construction of the oil trade exchange scheme!

All these scraps they won't be able to generate to feed the same pockets since the SWIFT inception... It's already a lot to lose for the banking folks.

Everybody knows in those ivory towers that soon or late bye bye the USD "a la Fed"!

Till then, I feel weirder and weirder everyday when I touch a 20 bucks to/from people and I know I am the one freaking out to the idea the bill value is not even worth a 10th or so of the gram of wood and ink used to make it (my own speculation, here)

Disturbing.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

You have missed

that is always happen in the election year to ensure the prices drop in Sep-Nov. Nothing to do with your reasoning.

ecorob's picture

"crude oil prices are dropping..."???!!!

pay no attention to 4 dollar a gallon gas...crude oil prices are dropping!

wtf?

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
9/11 Truth.

Gas price has nothing todo

Gas price has nothing todo with supply anymore, the dollar is crap and getting worse. Expect higher prices, alot higher.

Just wait and see!

The Energy Department's Energy Information Administration

said Wednesday crude inventories rose 1.8 million barrels

last week. At the key storage facility in Cushing,

Oklahoma, supplies rose 2.5 million barrels last week and

have jumped 10 million barrels during the last two months.

"The magnitude of the Cushing supply build is beginning to

exceed most expectations," energy consultant Ritterbusch

and Associates said in a report. "Our previously targets

of crude at the $112-113 area are beginning to appear out

of reach with Cushing supply mounting."

http://abcnews.go.com/International/wireStory/oil-falls-

106-us-crude-supply-jump-15922630

Ecorob, I know that we haven't seen a drop in the price at

the pumps just yet, but my prediction is that we will see

the bottom fall out before the end of this year...

"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

Cyril's picture

Folks, who is dependent on oil to go to and return from work and

Folks, who is dependent on oil to go to and return from work and sustain one's family?

I am : I take the bus. Should I start worrying?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Yes you should! Sad to say

Yes you should!
Sad to say but this is just going to get worse, the devaluation of the dollar has only begun.

Follow the Money, Honey

... Israel certainly won't attack Iran without support from the highest levels of the US government. Any act which attacks the US dollar's status as the world's reserve currency will be addressed with force if necessary. Apparently, the globalists and spendthrift politicians in Washington, D.C. aren't quite ready to open the eyes of the American people to the reality of a hyper-inflating and worthless US dollar.

whoa! on google maps colin powell clearly saw some iranian nukes

whoa! on google maps colin powell clearly saw some iranian nukes pointed at an israeli elementary school

he's pretty sure that's what that thing is, or it could be a grain silo

As the World Burns

They're getting thirsty.

http://vigilantcitizen.com/latestnews/invasion-of-libya-on-t...

I have never made but one prayer to God, a very short one: "O Lord make my enemies ridiculous." And God granted it.
Voltaire

I agree that this is the heart of the issue

However, it would've been A LOT easier to explain this to people if that idiot Ajmadinejad kept his mouth shut...

Every time that moronic politician speaks, he gives the American and Israeli government ammunition to start a war.

It's almost like he's asking them to attack...

Well, one thing we know for sure is that oil producing countries make more money selling their oil when there's turmoil in the region...