Iran makes important announcement

www.bloomberg.com...

IMPORTANT

days ago IRAN officially asked JAPAN to pay for oil in YEN.

what this means

Iran is trying to hit the United States where it hurts them the most; The Economy

You see, the the wealthy "westerners" make a lot of money off the stock markets and for some there livlihood depends on it. Those in the financial sector have been very crafty of late devising ways to take a certain amount of money and lend out more and more of it to buyers. alot of this is referred to as credit derivatives. basically there is 15 trillion worth of assets that has been leveraged (loaned) out and now totals an amount close to 400-500 trillion (depending on who you ask) this money has at least a 30:1 leverage i.e . the 400 million is actually a credit bubble made up of notional value based from an initial 15 trillion or so in investment equity.

the markets and the derivatives are greatly helped from the availability of "easy money" cheap money is due to relatively low intrest rates, not the least of which is Japan's intrest rate which is around 1%. people borrow yen , invest it in something that returns say 5% and watch themselves make easy money. this easy money helps keep the stock markets afloat and support such ridiculous never before seen credit derivatives bubble.

by getting japan to pay in yen , japan's currency is being propped up, it will appreciate, this will cause the yen carry trade to potentially unwind, resulting in a possible credit collapse, primarily from the lack of easy money (funds) now available thru something called yen carry trade, which is exponentially more important now, thanks to the crazy growth of derivatives in the last few years.

ironically Isreal is telling Iranian Jews that they will pay them 5000 per person and up to 30,000 per family to leave iran and seek comfort in isreal recently.

could it be that since IRAN is threatening to potentially due serious harm to the stock markets domestically (and abroad) by there demanding japan buy it's oil in yen, that america will have it's ally isreal attack iran (probably under the disquise of the nuclear reactor threat) since the united states is not in a popular position to do so. and that somehow (thru some false flag on a u.s carrier) the united states will get involved and change this policy PRONTO, and also take this opportunity to PROP up OIL prices since of course IRan will respond by cutting the supply of oil exports and even if they don't, the president and his croonies would not let such a money making opportunity pass by (they may just say supply channels have been severely inhibited) to justify INSANE oil prices and THUS profits for the WAR PROFITEERS?

of course such a military procedure would need to be quick and debilitating on the part of isreal , because they will not want to leave themselves "naked" for a return attack, especially with Syria supposedly having IRAN's back (in addition to whoever else?)

there are very high stakes this time and if my analysis is close to true ( in the effect's) although i seriously hope it's not, iran's attempt to impact the united states economy will have, the united states will not sit back and watch this happen. i have no idea what kind of weapons would be deployed to knock out IRAN and/or syria to the extent that they would not be able of signifigantly retaliate against isreal (if this should occur) but suffice to say it would be a BLOOD BATH and have potential for Serious collateral damage and possibly lots of country's involved (dare i say WWIII)

wsj reports Japan said no.

This happened in the past, with China I think. Regardless no how American corporate heads would let something like this fly, popular or not, America would quickly switch attention from Iraq to Iran.

And I think Japan knows better than to get involved cause hell, they understand, that if something like this was to occur, Japan would be no different than North Korea in the eyes of Corporate America. Japan also has a lot of money invested in America, why would they cause a collapse in the economy. Although, China has been slowly withdrawing Billions out of the States. Maybe the trend will continue and Japan will soon follow suit. I have no clue what that would do to their economy, but I know it cant be to healthy for any American citizen.

"wsj reports Japan said no."

umm huh?......unless an earlier article hypothesized that and now here's the latest


online.wsj.com...

not looking well

however i will concede that america has so much influence over japan and especially the BOJ that america's is ordering Japan to buy more from it's existing supplier and terminate deals with iran (which accounts for around 15%) instead of crashing global markets

although i'm not sure yet (dont have a good handle yet) on the effects of a happy china picking up the slack for iran's oil supply when japan backs down.

actually what i think it may due is cause more downward pressure on the dollar as china buys more oil in probably euros'. if they decided to get nasty (china) would buy oil in YUan to appreciate Yuan leading to higher prices for some goods (i.e walmart) which will cause some inflation of goods prices as well as downward pressure on the dollar as well as more unemployment and also increasing u.s intrest rates, so in summary this move will hurt the dollar the most unlest (more unlikely IMO china pay's in YUAN and then the lower-middle class would get slapt and while not being great for the wealthy and the stock markets it surely keeps the supply of the cheap yen carry trade going and helping u.s and especially world markets.

Putin is another fello leading the demise of the dollar by setting a time table of early next year to price oil in rubles as well i bet was his warning to the bushes that if they put up that stinking missle "defense" near Russia there will be a big prolemo. I see relationship with a stronger Russia going down the tubes and an alliance forming between Russia, China and Iran. where this goes nobody knows but Putin may have asked bush something like : you know your policys are going to lead a significant part of the world to act in a way that will damage the U.S economy and standard of living.

And bush probably said. I'm gonna go after Iran , set up missle defense, and oil prices are gonna go UP, and me and my friends Economy's will be doing just fine.



[edit on 18-7-2007 by cpdaman]

[edit on 18-7-2007 by cpdaman]

well japan said yes we will pay in yen

and then leads to a problem

economist peter schiff says will japan let us do it to them again or will they drop the bomb on us this tiime?, and the guy is well respected to boot

basically since they accepted to pay in yen they have two choices

1. pay in yen then increase the money supply in japan rapidlly to devalue the yen and keep it low bad news for japan would be higher inflation and erosion of the citizens very high savings rates

2. or they decide it is not worth it for them to destroy there currency to just delay the inevitable collapse of the united states because it will cost them too much, and the BOJ does have a loose affiliation with the gov't (unlike the FEDERAL reserve that sets monetary policy of the united states, where the FEDERAL gov't of the united states has ZERO influence over the "federal" reserve0. most don't even know this, those sneaky crook bankers. but if yen appreciates world markets and the united states will face a crash close to that of the great depression only difference is the dollar will probably be worse off.