Iran Shuns Dollars
Ten days after the 13th annual Iranian Oil Show, the government, led by President Ahmadinejad, has announced that it will no longer be accepting US dollars when selling it’s oil. Deals struck before and during the show have solidified Iran’s position on the global stage as the 4th largest oil producer, while the Oil Minister called the US dollar "worthless paper" and announced his country will be dealing in Euro and Yen for future sales. This news does not bode well for the weakening US economy nor will it help with Ireland’s celtic meltdown.
This move comes as no great surprise as it allows Iran to sidestep trade sanctions, imposed by the US, over it’s nuclear ambitions and will give Iran a "bonus benefit" from it’s oil sales while divesting itself of weak dollars. Trade and investment projects with countries like India, Russia, and Venezuela will guarantee Iran’s influence in global oil markets. Chavez, of Venezuela, has already toyed with the idea of replacing petro-dollars with euros and his close association with Iran could embolden his attempts to renew a euro-petrol policy.
Iran has oil and lots of it, what they don’t want is dollars, will they convince OPEC to dump the US dollar too?
- Politics, Caoimhin, Irish Culture, Irish Politics, misc, All posts, Conflict, Media and Journalism, freedom, World, Economy | Time: 12:49 pm (UTC+8)
I’m going to be thick and ask how (other than a weakening dollar being bad for us) this makes our economic plight worse?
Comment by Thriftcriminal — May 1, 2008 @ 5:46 pm
To me it just demonstrates a trend that US policies and currencies are being considered less and less. Especially in regards to oil, the US will rely more and more on the mercy of international bodies like OPEC, UN etc. And guess what, if the world has a say in our oil use do you think we can continue on the path we have been? We are so reliant on oil that we will either submit to whomever has it or….well war.
Comment by Survive — May 1, 2008 @ 6:04 pm
Hi TC, well if a weak dollar is not enough, Ireland is highly vulnerable to fluctuating oil prices even though we have a 90 day reserve, as required by EU law. Any disruptions like natural disasters, strikes, or hostilities will be critical to us. There has also been a huge increase over the years in our trade with the US, because the dollar is weak we have increased our fuel oil imports by over 210,000% and our coal imports by over 90,000%. Talk about putting all your eggs in one basket! Even with this cheap product from the States our energy costs have risen 20% if there is a break in the supply chain we are in trouble.
Comment by Cao — May 1, 2008 @ 6:52 pm
Now you’ve said it Survive, war. The weak dollar is propped up by the fact that all oil producing countries were selling in US dollars. All countries had to keep bundles of US banknotes in their vaults to buy the oil they need, and they need oil more that they do bits of paper. If too much American currency gets sent back to the States it will mean a depression.
Comment by Cao — May 1, 2008 @ 6:58 pm
Cool, that’s pretty much what I was thinking. It’s never too pleasant descending a curve, but getting away from our addiction to fossil fuels is inevitable and hopefully will result in a better way of life. I hope so anyway. Are you familliar with the Kinsale Energy descent plan and the Transition culture blog by Rob Hopkins?
Comment by Thriftcriminal — May 1, 2008 @ 10:03 pm
add that to the fact we are consistantly showing our muscle in the persian gulf.
Fox News
Personally, I’m getting a good bit bothered by all this
Comment by Rebecca — May 1, 2008 @ 10:13 pm
Thanks TC, we can only hope. I’m not familiar with either of them but will check them out, thanks for the tip!
Comment by Cao — May 1, 2008 @ 10:31 pm
Hi Rebecca and thanks for the link! There are always skirmishes in the busy waters of the Gulf, don’t be too worried about that. There was a new US Navy aircraft carrier reportedly headed into the Gulf today too; but, again they are always coming and going there. High level discussions were held between Iran and the US these past few weeks concerning the nuclear issue, there are ongoing talks and it will come as no surprise that Iran might drop the petrodollar, the question is: will Chavez follow suit?
Comment by Cao — May 1, 2008 @ 10:38 pm
Hi Cao,
I read this yesterday. I hate to beat a dead horse but we all know who we have to thank for this.
I fully expect a full blown depession and have for some time now.
There is no doubt that America’s leaders really missed the ball for at least thirty years or more now.
My husband drives for a living. His company has a huge account hauling windmill blades and parts. And, as our political arena here is moving further and further to the left the demand for this product has really started growing.
The sad thing is that it is too little too late. He spends most of his time in Canada now. Because of lack of freight in the US.
Thanks for stopping by and welcoming Bill home. Our entire family has opposed this war from the start. And we were devestated when he was called up.
He left the Army full time after Desert Storm. But, to maintain his benefits and retirement he joined the guard. Thinking he would be of help here at home.
But, then came Bush and Iraq!!
I don’t know about Chavez? He is a sly one. But, he is also making a ton of money right now by selling to the US. I am hoping if we can hang on until November then we might be able to get some of this mess fixed.
What we need is someone who will talk to the various powers around the world. We have got to start depending on Diplomacy first and not bombs first!!
Comment by Shinade — May 3, 2008 @ 1:57 am
I have not added you as a link at my blog. I simply never thought to. But, you are going to be added as of now!!
Peace!!
Comment by Shinade — May 3, 2008 @ 2:01 am
I doubt we can get out of this mess. The more you look at it the clearer it gets that America is going to Iran no matter who will be the US President. This is about Geopolitics and America had its face slapped.
Do you think America can just bring 160 thousand troops back home? They have no jobs to come back to. Inflation is rampant and oil prices are not coming down. Subprime mess that is not going to be fixed. And now the dollar is not respected by OPEC countries.
This is all heading to Iran and NWO. America will have no choice but to merge economically and politically with Euro.
I see a new currency on the horizon maybe 10 years down the line, right after the Iran war. The currency will be Eurodollars.
We hading for some tough times ahead.
Comment by Igor The Troll — May 3, 2008 @ 6:00 am
Hi Shinade! Thanks for the linky love and the comments!
Yeah, diplomacy is what we need alright, there are no Statesmen these days only politicians, what a shame!
I hope Hubby gets local work soon!
We won’t get out of this mess Igor until the ordinary people speak out!
Comment by Cao — May 3, 2008 @ 5:14 pm
Thanks Cao,
Actually he just spoke to me this morning. And said that I needed to correct one statement I made concerning him being in Canada and American freight. He is in fact hauling American goods into Canada. He is not going into Canada and bringing any freight back.
Comment by Shinade — May 3, 2008 @ 7:22 pm
oil… dollars … the need for diplomacy darkens the life, but the picture at the bottom of your post creates the miracle - the sorrowful truth not threatens but attracts while viewing the artwork. The picture talks - the beauty reveals the global cause - our Earth will inescapably sink into the blood if we continue looking one to other as at the owners of the oil, or dollars. We all are the brothers in the spirit. And we all enjoy the same heaven. While worldly goods plants the hatred, the comprehension of the brotherhood heals the wounds.
I never had been in Iran, I have no dollars, but I know for sure we all are brothers of the same light and if we are the members of the same family, we will help one other not because of the plans to gain something, but of love to our weaker member. That’s participating in the sharing of the light of love. And there is no other outcome.
Comment by Tomas — May 5, 2008 @ 6:00 pm
You have spoken words of wisdom Tomas, it doesn’t appear as if we’ve learned that lesson yet!
Comment by Cao — May 5, 2008 @ 6:46 pm
Cao you said “We won’t get out of this mess Igor until the ordinary people speak out!”
Problem is a lot are speaking out, and the politicians just don’t care. Oil is a powerful lobbying force, and it doesn’t matter to them how much blood they have to spill to get it, or wallets they have to line. Most of the country is against the war at this point. It is like Vietnam all over. But it doesn’t help to voice an opinion when no one in Washington is listening anymore.
And as far as war and NWO go I expect we will attack one of either two countries for more oil, Venezuela or Iran, which will throw us into a full blown depression, like shinade said, and then we will have to merge with the E.U. like Igor The Troll mentioned.
Just my opinion.
Comment by staticbrain.com — May 7, 2008 @ 10:24 am
Thanks for the comment SB! It does seem as if “they” are not listening but with more and more voices being added to the outcry against injustice if the leaders do not listen they can expect action to follow the words!
Comment by Cao — May 7, 2008 @ 11:46 am
I’m sorry if the shift from petrodollars to petroeuros or petroyen has a negative effect on the Irish economy but, if it means the beginning of the end of U.S. hegemony, I think it’s a price we should all be gladly prepared to pay.
Congratulations on this fine blog, Caoimhin.
Comment by Mike Booth — May 10, 2008 @ 6:54 pm
Hello Mike and thanks for dropping in! It seems all countries will be affected in the short run by the sudden changes in world trade concerning petro-dollars. Should this dollar dumping continue to South America or OPEC it could be a severe blow to the US economy and all it’s trading partners; but, it would bring about a monetary re-evaluation that is more equitable. I’m afraid the US citizens will be hardest hit though, isn’t it odd that there is very little about this being reported in the main stream media since it was first announced? It’s as if no one recognises the importance of Iran’s actions, very strange. Thank you for the compliment Mike!
Comment by Cao — May 10, 2008 @ 9:10 pm
Cao, nobody likes to talk about The Twilight Zone, but it is all coming. It is even written in the Bible prophecies.
Today we maybe called Freaks, Heretics, Conspiracy Theorists, Rebels, and even Terrorists.
But NWO is not far way!
Check the new video I posted of George Bush declaring New World Order.
Israel Right to Exist
Comment by Igor The Troll — May 10, 2008 @ 9:32 pm
Thanks for the link Igor! I’ve seen that video and there are some others where world leaders use that phrase, “New World Order”, is there a conspiracy or is that just a popular sound byte?
Comment by Cao — May 10, 2008 @ 9:52 pm
Cao, we better ask EuroYank about this. He is our resident Authority on NWO.
Maybe it is of Alien nature? Or Aryan!
Comment by Igor The Troll — May 10, 2008 @ 11:22 pm
I may have missed the link, but could you provide a source for the information that Iran is switching away from the dollar? If true, this is big news, but I’m sceptical that it’s anything other than a statement of intent. Iran is a member of OPEC which sets a common policy for oil transactions. Unless Iran is planning on leaving OPEC, or unless the other OPEC members ratify this decision, it may well be mere posturing.
Comment by Jim Bliss — May 12, 2008 @ 5:47 pm