IRAN MOVES TO END PETRODOLLARs

IRAN MOVES TO END PETRODOLLAR,
ANNOUNCES WILL ACCEPT PAYMENT IN GOLD INSTEAD OF US DOLLARS

Tyler Durden | Wednesday, February 29, 2012
http://www.zerohedge.com/news/iran-moves-further-end-petrodollar-announces-will-accept-payment-gold-instead-dollarsFirefoxHTML%5CShell%5COpen%5CCommand

INTRODUCTION:

Is this the right answer to the embargo imposed by the US on Iran?
By Hugo Adan
February 29, 2012

If China and India will continue buying oil to Iran, means that they won’t be affected by the US-EU embargo, then what is the purpose of this message?. Why not no wait until July, when the embargo on them comes through?

Possible answers: a) dismantle the European support to the US and Nato by offering oil underground to those countries who has reserves of gold, including Grecia. If Grecia gets out of the EU, bye, bye European union. b) de-dollarize your national reserves, I will accept other currencies, said Iran. C) message to all citizens of the world: convert your money deposited in Banks, into gold. The taking out of money from US-EU banks and buying gold coins will creates a financial catastrophe in the West and decree the end of the dollar worldwide.

The war has to be won first at the economic level, said Clausewitz.

If Iranian tactic goes through, the US will be in trouble: we have not enough oil to run our economy in the short-mid term but we still have the currency supremacy of the dollar worldwide by forcing others to trade its oil and other major goods in the world market in dollars. The rest is easy (they control central Banks in client countries, and all those who borrowed money & major FDIs from the US). We can lose such supremacy.

When Iran propose either gold trade for oil or accept the national currency of those who do not have gold, is just responding kick by kick to those who sponsored the embargo.

This is a hard ball game that needs to be stooped in both sides. The media play a key roll in preventing the escalation of this war monguerism.

The stupid annunciation of the embargo is already creating big trouble in the West right now. Commodity prices and transportation fares are soaring and in the US this will create political problems. The recent Bill 347 against freedom on Speech and freedom of Assembly will not deter the uprising of the population.

So, maybe Iran is ready to respond the nuclear attack planned on them and the US do not want to receive the first impact of this clash and prefer the Jews of Israel be sacrifices since their stupid zionist rulers agreed on. But, what about us? Are Americans ready to go to this type of war?. Maybe if Israel (the US behind it) bombs Iran, and China-Russia, behind Iran, bombs Israel, then the collision between the big powers will be eminent. This is the time when Americans will realize that is terrible to play this game (unfortunately we are kidnapped by the GOP war monguerists in their race to elections, they took control of the big mass media) and when we realize that real war could come on our heads, then we will try to get our money from banks, converted into gold coins and run out of big cities.

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IRAN .. TO END THE PETRODOLLARS

Tyler Durden | Wednesday, February 29, 2012

http://www.4thmedia.org/2012/02/29/iran-moves-further-to-end-petrodollar-announces-will-accept-payment-in-gold-instead-of-dollars/

Much has been spun in recent weeks to indicate that as a result of collapsing trade, Iran’s economy is in shambles and that the financial embargo hoisted upon the country by the insolvent, pardon, developed world is working.

We had a totally different perspective on things “A Very Different Take On The “Iran Barters Gold For Food” Story” in which we essentially said that Iran, with the complicity of major trading partners like China, India and Russia is preparing to phase out the petrodollar: a move which would be impossible if key bilateral trade partners would not agree to it.

Gradually it appears this is increasingly the case following a just released Reuters report that “Iran will take payment from its trading partners in gold instead of dollars, the Iranian state news agency IRNA quoted the central bank governor as saying on Tuesday.”

Via Reuters:

“Iranian financial institutions have been hit by sanctions imposed by the United States and the European Union in an effort to force Tehran to halt its nuclear programme.

Significant difficulties in making dollar payments to Iranian banks have forced Iran’s trading partners to look for alternative ways to settle transactions, including direct barter deals.

“In its trade transactions with other countries, Iran does not limit itself to the U.S. dollar, and the country can pay using its own currency,” central bank governor Mahmoud Bahmani was quoted as saying. “If a country should so choose, it can pay in gold and we would accept that without any reservation.”

The sanctions include a phased ban on importing oil from Iran, which EU member states are to implement by July.

China and India, two of the largest consumers of Iranian oil, have said they will continue imports, but Japan and Korea have announced cuts to quotas following pressure from the United States. As a result the value of Iran’s rial has plummeted, pushing the price of goods sharply higher across the country.

And from the source:

“Governor of the Central Bank of Iran Mahmoud Bahmani says the country can trade in currencies other than the American dollar in its foreign transactions.
“Iran does not just work with the dollar in trade transactions and every country can pay in its own currency,” said Mahmoud Bahmani on Tuesday.

Bahmani added that Tehran could receive gold in its transactions instead of currency transfers. In case a country is willing to pay for the price of its imports from Iran in gold, there is no problem in this respect, he noted.

According to Bahmani, Iran imports commodities from China and India in exchange for the countries’ currencies. Tehran’s move is aimed at bypassing the upcoming freeze on CBI’s assets and the oil embargo, which the European Union’s foreign ministers agreed to impose on the Islamic Republic.

Now this would be great news for Greece which as previously reported had at times relied for more than 50% of its crude imports on Iran. There is just one problem: very soon the country will no longer have said gold in its possession, as part of the pre-approved Greek bailout of Europe, the country’s constitution would be changed to reflect that even its gold now is part of the bailout conditions, and European banks have a lien on it. Especially if said gold is located in the basement of the NY Fed where it most likely resides.

As for other countries, such as China which we are confident has been quietly stock-piling gold in the last few years, and will make a surprise announcement any day now, as it did back in 2009… that’s a different matter entirely.

Tyler Durden, ”Zero Hedge“


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