28east

Politics, religion, and culture where East meets West

March 20th

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The Iranian view, from the Tehran Times (“Visions of violence in defense of the dollar“):

President Mahmoud Ahmadinejad has reiterated Iran’s willingness to resume negotiations with the Western powers and has even allowed a team of International Atomic Energy Agency inspectors to return to Iran. These inspectors may find some ambiguous, inconsequential shred of evidence, the significance of which may then be magnified to gargantuan proportions by the Western media, and held up as proof positive of the “smoking gun” confirming the existence of an Iranian nuclear weapons program. The inspectors will exit Iran and present their findings; there will be an exchange of charges and denials; ultimatums will ensue; and then Israel may make a provocative move. In an understandable and justifiable response, Iran may close the Strait of Hormuz, causing an anticipated 50% rise in crude oil prices, resulting in widespread economic havoc. Also, March 20, 2012, which is Noruz, the Iranian New Year, is the target date for the Iranian oil bourse to begin trading crude oil in currencies other than the U.S. dollar.

Meaning: On March 20th, Iran will stop trading oil in dollars entirely.

The dispute over Iran’s nuclear program is nothing more than a convenient excuse for the U.S. to use threats to protect the “reserve currency” status of the dollar. Recall that Saddam announced Iraq would no longer accept dollars for oil purchases in November 2000 and the U.S.-Anglo invasion occurred in March 2003. Similarly, Iran opened its oil bourse in 2008, so it is a credit to Iranian negotiating ability that the “crisis” has not come to a head long before now.

Europe is on the brink economic chaos due to the prudent monetary policies of the European Central Bank, which has refused to print money to buy government debt, quite unlike the U.S. Federal Reserve. Having been lured by cheap 1% bailout loans from the Fed to prevent government defaults, Europe caved in to the Zionist-inspired U.S. pressure and agreed to shoot itself in the financial foot by imposing oil sanctions on Iran, thus guaranteeing a European double-dip recession. For the U.S., however, these financial events help ensure that the euro will not pose the threat it once did to the dollar’s hegemony over oil transactions.

March 20th is also the potential date of the Greek default—pending the restructuring of a €14.5 billion bond repayment.

The possibilities are endless.

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Written by M. James

February 19, 2012 at 9:47 pm

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