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Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse

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posted on Jun, 6 2006 @ 08:19 AM

Originally posted by Where2Hide2006
that stock market is back down 600 pts since May... Something is Going On ... I thought that the US said that Iran wouldn't have the bomb for a few years... but their Oil Bourse opens soon? Hmmm, I wonder why the Bush Admin is pushing the UN for Sanctions Now? Which is only causing higher oil prices...which is responsible for short term inflation.

This just doesn't make sense... unless of coarse the Nuke Program isn't the #1 Objetive.

food for thought.

Ish! Get a clue!
The DOW is down because interest rates are up. As interest rates rise it makes bonds and CD more completive to stocks. Right now 12 months CD’s are earning 5.25%.

Additionally, rising rates slows economic growth and thus reduces profits. A stock is a right to future profits, so as profits fall, so do stock prices.

Interest rates are rising because America economy is growing SO FAST (5+%) that it’s inflationary, and the fed exists to control inflation.

Bush wants sanctions because Iran is the primary funding source for world Islamic terrorism. Should they acquire nuclear weapons, they would represent a grave, grave threat to world peace.

Oil prices are high because world demand has greatly outpaced world supply AND because war with Iran is a possibility, it puts future supplies of oil in doubt. That makes present supplies more valuable.

posted on Dec, 11 2006 @ 06:07 AM
Ho Ho Ho, Oh No...

Majlis okays replacement of US dollar with euro IranMania News, Iran
LONDON, December 10 (IranMania) - The Islamic Consultative Assembly (Majlis) is agreable to replacing the US dollar with the euro in Iranian foreign transactions, said a member of the Majlis Planning and Budget Commission, Morteza Tamaddon, IRNA reported.

Oil producers shun the dollar Financial Times, UK
Russia and the members of the Organisation of the Petroleum Exporting Countries, the oil cartel, cut their dollar holdings from 67 per cent in the first quarter to 65 per cent in the second.

Meanwhile, they increased their holdings of euros from 20 to 22 per cent, the BIS said. The speed of the shift may help to explain the weakness of the dollar, which recently fell to a 20-month low against the euro and a 14-year low against sterling.

Iran mullahs want oil above US$70 a barrel Persian Journal, Iran
Oil prices should climb back above US$70 (HK$546) a barrel as a result of winter weather in the northern hemisphere and OPEC output decisions, a senior mullahs' regime oil official said Sunday. "The oil price in the world market has been more than [US]$70 per barrel in the past, but considering the fact that we are approaching winter and demand is increasing, this price could be higher," said Gholamhossein Nozari, managing director of state oil company NIOC.

Please visit the link provided for the complete story.

Merry Inflation-mas and the Iranian Oil Bourse becomes less of a rumor. The dollar continues to fall and is now at a 14-year low against the British pound. Meanwhile, Bernanke and Greenspan will be in China the 14th to see if they can whip Beijing into shape, err sell out.

It's beginning to smell a lot like desperation and maybe coal in stockings will be a good thing...

posted on Dec, 21 2006 @ 12:43 PM
I thought I would update this thread with these recent ATS discussions revolving around Iran's decision to use the Euro for oil transasctions and calculating it's national budget.

Iran's done it now

Dollar dropped

Analysts said Tehran had been steadily shifting its foreign-held assets out of dollars since 2003 and that Monday's announcement was unlikely to affect the value of the dollar, which has weakened significantly in recent months.

An Iranian spokesman said all its foreign exchange transactions would be conducted in euros and its national budget would also be calculated in euros as well as its own currency.

"There will be no reliance on dollars," said Gholam-Hussein Elham.

"This change is already being made in the currency reserves abroad."

The currency move will apply to oil sales although it is expected that Iran, the world's fourth largest oil producer, will still accept oil payments in dollars.

Another step towards an oil bourse, and similar to Russia's decision back in May 06.

And the clock keeps on ticking...

posted on Mar, 19 2007 @ 06:42 PM
I ran accross this recent article today:

Iran to appoint 'oil bourse' chief

A senior Kish Island official said Saturday that the managing director of Iran's first petroleum exchange is expected to be appointed soon, bringing the oil-rich nation a step closer to opening its first 'oil bourse'.

President Mahmud Ahmadinejad has directed Iran's ministers of oil, economic affairs and finance to appoint the board of directors of the oil exchange and its managing director.

He also said the building which will house Iran's first oil exchange has been constructed on the Persian Gulf island of Kish and that the required technical equipment has been installed.

Shayesteh added that three major organizations are involved in the groundbreaking project, saying that coordinating efforts between the various groups initially delayed the project.

According to the senior official, the articles of association for the oil exchange have since been approved.

Last month, a separate official announced that the petroleum exchange would begin operation "in the near future."

The new oil exchange ... will be the world's first euro-denominated petroleum exchange.

Second source:

Iran 'euro-based' oil bourse underway
The stock market will be open to the public soon after the appointment of a managing director and members of a board of directors.

Last month, after a year of speculation, Iran changed its oil bourse from petrodollars to petroeuros.


posted on Mar, 19 2007 @ 07:41 PM
Given US's huge foriegn debt isn't it effectively in US's interest if the value of dollar dropped? this would mean less money is owed! and also it will help exports from US?

Just a thought.

posted on Mar, 20 2007 @ 10:25 AM

Originally posted by zurvan
isn't it good for the US if the dollar drops anyways?

If you like inflation.

The petrodollar is about much more that the value of the dollar relative to other currencies. It's about the economic and political strenght of the US. I suggest you go back to the beginning of this thread and read allthe links to start to get an understanding of just how that works.


posted on Mar, 24 2007 @ 03:18 PM

Iran's crude customers shifting currency

Iran's efforts to switch from U.S. dollar to other currencies in crude oil deals appear to be progressing.

An official with Iran's oil ministry says 60% of payments are now made in non-dollar currencies.

Iran has succeeded in ensuring that almost all European and some Asian clients have agreed to pay in currencies other than U.S. dollars, a senior oil official said on Thursday.

"Pricing as you know is based on the quotations that we get from the international market and when the international market quotes anything for crude or for the products all of them are for the U.S. dollar," Ghanimifard said.

With exports hovering around 2.4 million barrels per day, Iran's annual income from crude sales stand at an average of above $40 billion.

Iran's leading crude clients are the big Asian consumers Japan and China with Italy and France the leading European clients.

posted on Mar, 24 2007 @ 06:27 PM
Oil is climbing also, since the British soldiers where taken hostage. Some are indicating this was the false flag operation as Ron Paul describe and the UK will be hitting Iran soon.

If oil jumps $10+ in the coming weeks, then I'd say the war is a go.

[edit on 24-3-2007 by Regenmacher]

posted on Mar, 29 2007 @ 04:14 PM
Iran Is Cutting Dollar Reserves, Central Bank Says

March 27 (Bloomberg) -- Iran is cutting its U.S. dollar reserves to less than 20 percent of total foreign currency holdings, and will buy more euros and yen as tensions with the U.S. increase, Central Bank Governor Ebrahim Sheibany said.

The country can sell its oil in euros or any other currency, Sheibany told reporters. Buyers ``don't mind to switch because they need our oil,'' he said.

Iran exports 60 percent of its crude to Asia, 32 percent to Europe and 8 percent to Africa. It is the world's fourth-largest oil exporter and the second-largest producer among the Organization of Petroleum Exporting Countries.

This is new:

Iran will probably sell euro-denominated Islamic bonds either this year or next year, he said, without giving a value for the proposed sale.

Looks like they are moving more than just their oil exchange to the Euro.

posted on Mar, 31 2007 @ 01:34 AM
Did this lead to the US sanctions?

From another thread:

China Shifts to Euros for Iranian Oil

BEIJING (Reuters) - China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year ...

"Most of China's purchases have shifted to euro. It's not difficult so long as our banks can handle that," said a Chinese state oil trader.

Japanese buyers, including top refiner Nippon Oil Corp., said they had all received inquiries from Iran to pay on non-U.S. dollar terms, but were awaiting an official request.
(visit the link for the full news article)

Seems like things are moving again in the petrodollar world including moving ahead with a Euro based oil bourse: Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse

This particular story came out a couple of days ago and is reporting a continuing development that began a few months ago.

I think it kind of puts this story from a couple of days ago into perspective: United States Sanctions China! Just in!

That makes more sense now.

Funny how these important economic and geopolitical developments are playing-out totally under the radar in the mainstream media.

Makes me think it's important or something.


[edit on 3/31/2007 by Gools]

posted on Mar, 31 2007 @ 01:43 AM
WOW gooles... that is horrific news!

China is the LARGEST holder of American currency, billions of it.. because they need it to purchase mostly oil and other "necessities" .. if their buying with Euro's from Iran their largest oil importer.. they will need less Dollars, and more Euros, converting their dollar supply to Euro would drive the dollar down.. further..

It also means Iran may have just met an untimely death..

Russia dumped the Dollar last year for oil SALES... the whole world seems to be backing away from us no? ..

Is it any wonder Europe is angry at us all the time.. we are attacking THEIR currency! ... except England!
Gee.. why are they friends? .. Why are they at war? .. Because they don't use the Euro.

posted on Apr, 1 2007 @ 07:40 PM
What are the British currency managers doing just now? Anyone got recent links?

posted on Apr, 9 2007 @ 01:45 PM
No response? Okay, try this on for size and tell me what you think.


posted on Apr, 9 2007 @ 08:43 PM
What odd coincidence: interest rates, inflation and money have value with relation to minerals. And how is this so that oil is consumed at a more greater volumetric rate than iron and coal.

Iran will not be invaded, all is well. People get suspicous and a lot of thin thread goodwill is going to be lost in any war. How upset might the French/German/Italian fascist cespool become? Or what might the Russians be conjuring up? Another 9/11?

posted on Apr, 10 2007 @ 09:14 PM

Originally posted by Gools

Originally posted by zurvan
isn't it good for the US if the dollar drops anyways?

If you like inflation.

The petrodollar is about much more that the value of the dollar relative to other currencies. It's about the economic and political strenght of the US. I suggest you go back to the beginning of this thread and read allthe links to start to get an understanding of just how that works.


I am not sure where the error if any in the following hypothesis is:

If US has mortgaged say 10 times its worth( as mentioned on another thread) that means for every dollar worth of US assets there are 10 dollars owed. So say if the value of dollar drops 100 times. doesnt't that mean that now only a tenth of Us assets are owed as the value of dollar is 100 times less so 10 dollars owed is effectively .1 of a dollar worth?

inflation as long as money is owed in cash and is in form of capital gain on assets is not necessary a bad thing.

posted on Apr, 11 2007 @ 04:26 AM
Actually, this is something I covered in my published work. If and when it comes to settling U.S. debt by hocking assets, Those buildings, properties and technologies will be assigned a value that is not linked to the fallen dollar.

posted on Jul, 13 2007 @ 12:07 PM
Another important development: Iran Asks Japan to Pay Yen for Oil, Starting Immediately

I also note that the Canadian dollar (30 year high - last time was the 70's oil crisis) and the Euro (record highs) are both on the rise versus the USD. I'm sure others are as well, reflecting a falling USD value rather than other factors.

posted on Jul, 21 2007 @ 12:21 PM

Looks like Japan will comply.

Nippon Oil to pay for Iran crude in yen, not dollars
The Japan Times
Thursday, July 19, 2007

Nippon Oil to pay for Iran crude in yen, not dollars

Nippon Oil Corp., the top Japanese petroleum wholesaler, will start paying Iran in yen instead of dollars for crude oil imports this fall, Chairman Fumiaki Watari said Wednesday.

If Nippon Oil effects the change, it would become the first Japanese oil wholesaler to switch to yen payments for Iranian oil.

"When it is possible, we will directly send yen," Watari said at a regular news conference. He said the change is in response to a recent request from National Iraninan Oil Co.

Iran has asked Japanese oil wholesalers to make payments for oil purchases in yen, not dollars as currently used in most transactions.

Nippon Oil buys around 120,000 barrels a day of crude oil from state-owned NIOC under term contracts, accounting for about 25 percent of Japan's total oil imports from Iran, the second-largest producer in OPEC.

Japan is the world's second-largest importer of crude oil.

Please visit the link provided for the complete story.

I get several things from reading the full article. One is that Iran is well on it's way to dumping the dollar completely since over 70% of it's transactions are now in non-dollar currencies. This is possibly/likely one of the factors in the dollar's recent decline.

Secondly, the article specifies that these are private contracts between the state oil company of Iran and the oil wholesalers in Japan with the spokesman for the wholesaler saying they will pay "directly". This definitely breaks the petrodollar cycle.

While the price of oil may still bet "set in dollars" (for how long?) and the number converted to another currency for payment, there are less dollars needed in accounts (be they corporate or government accounts) for international financial transactions. Thus a weaker demand to keep the dollar around.

posted on Jul, 21 2007 @ 05:23 PM
I'm with you, G-man. This is economic warfare, and U.S. officials are asleep at the wheel. When our projected economic downturn hits, we can expect to suffer for much longer because foriegn exchange rates versus the dollar will be soooo painful.

posted on Sep, 18 2007 @ 01:02 PM

Confirmation today that Iran has cut it's dollar based assets down to 30%:

Iran cuts foreign dollar assets to 30 percent

“After the strong fall in the dollar and the decision to transfer our foreign currency reserves into euros, we have taken measures and now 70 percent of Iranian assets are in euros, other currencies or gold,” said Deputy Economy Minister Mohammad Zahedi Vafa.

Iran had announced earlier this year it was switching out of dollars and would instead save its foreign assets in other currencies to dampen the effects of US pressure on its financial system.

Caretaker Oil Minister Gholam Hossein Nozari has said that already 60 percent of Iran’s oil transactions for export are carried out in euros.


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