Le site Bellaciao: coloré, multiple, ou le meilleur cotoie fort heureusement le pire, mélangé, bizarre, picabien et dadaîste, explorant toutes sortes de registres et de régimes rhétoriques, drole et polémiqueur, surréaliste: rencontre d'un parapluie et d'une machine à coudre sur une table de dissection, têtes de Lénine sur le clavier d'un piano Steinway ou Bosendorfer...
FR
ES
Senal en Vivo
VIDEO
RADIO
FRIENDS SITES
with Bellaciao
Bellaciao hosted by
To rebel is right, to disobey is a duty, to act is necessary !
Bellaciao  mobile version   |   Home  |   About us   |   Donation  |   Links  |   Contact  |   Search
Fragile Dollar Hegemony: Iran’s Oil Bourse could Topple the Dollar

by : Mike Whitney
Tuesday February 5, 2008 - 17:55
1 comment

Fragile Dollar Hegemony: Iran’s Oil Bourse could Topple the Dollar

By Mike Whitney

Global Research, February 4, 2008

Two weeks ago George Bush was sent on a mission to the Middle East to deliver a horse’s head. We all remember the disturbing scene in Francis Ford Coppola’s “The Godfather” where Lucca Brassi goes to Hollywood to convince a recalcitrant movie producer to use Don Corleone’s nephew in his next film. The “Big shot” producer is finally persuaded to hire the young actor after he wakes up in bed next to the severed head of his prize thoroughbred. I expect that Bush made a similar “offer they could not refuse” to the various leaders of the Gulf States when he met with them earlier this month.

The media tried to portray Bush’s trip to the Middle East as a "peace mission", but that just a smokescreen. In fact, three days after Bush left Jerusalem, Israel stepped-up its military operations in the occupied territories and resumed its merciless blockade of food, water, medicine and energy to the 1.5 million people of Gaza. Clearly, Bush had green-lighted the operations or Israel’s aggression would have been seen as a slap in the face of the President of the United States.

So, what was the real purpose of Bush’s trip? After all, he has no interest in peace or in honoring his commitment to resolve the Israeli-Palestinian crisis. So, why would he choose to visit the Middle East just as his second term as president is winding down and there is no chance of success?

Sometimes personal visits are important; especially when the nature of the information is so sensitive that the message has to be made face to face. In this case, Bush went to the trouble of traveling half-way around the world to tell the Saudis and their friends in the Gulf States that they were going to continue linking their oil to the dollar or they were going to “sleep with the fishes”. For the last two months, various sheiks and finance ministers have been moaning and groaning about the falling dollar---threatening to break from the so-called “dollar-peg” and covert to a basket of currencies. Bush’s trip appears to have rekindled the spirit of brotherly cooperation. The grumbling has ceased and everyone is back "on board". The regional leaders now seem considerably less bothered by the fact that inflation is gobbling up their economies and driving labor, food, energy and housing through the roof. Reuters summed it up like this:

“After a flurry of public disagreements over currency reform last year, Gulf central bankers are trying to close ranks, talking up the pegs as a source of stability and playing down the dollar’s weakness as a temporary phenomenon.”

Looks like Bush smoothed things over.

In the last two weeks, the Gulf leaders have watched nervously while the Federal Reserve has slashed rates by a whopping 125 basis points. The cuts are steadily eroding the $1 trillion of capital the sheiks have invested in US Treasuries and securities.

“Inflation is at 16-year highs in Saudi Arabia and Oman, a 19-year peak in the United Arab Emirates. Gulf policymakers are intervening directly in loans, property and commodity markets to offset rate cut.” (Reuters)

Property values have skyrocketed. Commercial property in the UAE has doubled since the beginning of 2007. The inflation-bomb has forced other Gulf states to provide food subsidies for their people and a “70% wage rise for some Emirati federal government employees.”

Disgruntled migrant workers rioted in Dubai recently, demanding to be fairly compensated for the sharp increase in prices. The Saudi riyal has climbed to a 21-year peak.

Currency traders expect another 8% rise in the dirham and riyal by April and they are predicting that interest rates will compel Central bankers throughout Gulf states to covert to either the euro or a basket of regional currencies. So far, however, the loyal Saudi princes have continued their support for the dollar.

Defending Dollar Hegemony

So, how important is it that oil continue to be denominated in dollars? Would the United States wage war to defend the dollar’s status as the world’s “reserve currency”?

The answer to this question could come as early as this week, since the long-awaited Iranian Oil Bourse is scheduled to open between February 1-11. According to Iran’s Finance Minister Davoud Danesh-Jafari, “All preparations have been made to launch the bourse; it will open during the 10-day Dawn (the ceremonies marking the victory of the 1979 Islamic Revolution in Iran) The bourse is considered a direct threat to the continued global dominance of the dollar because it will require that Iranian “oil, petrochemicals and gas” be traded in “non-dollar currencies”. (Press TV, Iran)

The petrodollar system is no different than the gold standard. Today’s currency is simply underwritten by the one vital source of energy upon which every industrialized society depends---oil. If the dollar is de-linked from oil; it will no longer serve as the de-facto international currency and the US will be forced to reduce its massive trade deficits, rebuild its manufacturing capacity, and become an export nation again. The only alternative is to create a network of client regimes who repress the collective aspirations of their people so they can faithfully follow directives from Washington.

As to whether the Bush administration would start a war to defend dollar hegemony; that’s a question that should be asked of Saddam Hussein. Iraq was invaded just six months after Saddam converted to the euro. The message is clear; the Empire will defend its currency.

Similarly, Iran switched from the dollar in 2007 and has insisted that Japan pay its enormous energy bills in yen. The “conversion” has infuriated the Bush administration and made Iran the target of US belligerence ever since. In fact, even though 16 US Intelligence agencies issued a report (NIE) saying that Iran was not developing nuclear weapons; and even though the UN’s nuclear watchdog, the IAEA, found that Iran was in compliance with its obligations under the Nuclear Nonproliferation (NPT) Treaty; a preemptive US-led attack on Iran still appears likely.

And, although the western media now minimizes the prospects of another war in the region; Israel is taking the precautions that suggest that the idea is not so far-fetched. “Israel calls for shelter rooms to be set up in a bid to prepare the public for yet another war, this time, one of raining missiles.” (Press TV, Iran)

"The next war will see a massive use of ballistic weapons against the whole of Israeli territory," claimed retired general Udi Shani. (Global Research

http://globalresearch.ca/index.php?...

Russia also sees a growing probability of hostilities breaking out in the Gulf and has responded by sending a naval task force into the Mediterranean Sea and the North Atlantic.

According to an article on the Global Research site:   “The flagship of Russia’s Black Sea Fleet, the Moskva guided missile cruiser, joined up with Russian naval warships in the Mediterranean on January 18 to participate in the current maneuvers....The current operation is the first large-scale Russian Navy exercise in the Atlantic in 15 years. All combat ships and aircraft involved carry full combat ammunition loads.

Global Research,

http://globalresearch.ca/index.php?...

France is also planning military maneuvers in the Straits of Hormuz. Operation "Gulf Shield 01," will take place off the coast of Iran and will employ thousands of personnel in combined arms operations that will include simulated attacks on oil platforms.”

Exercises are scheduled to take place from Feb. 23 to March 5, and will involve 1,500 French, 2,500 Emirate, and 1,300 Qatari personnel operating on land, at sea and in the air, the ministry said..."Around a half-dozen warships, 40 aircraft and dozens of armored vehicles will be in the war games", Fusalba said.

http://www.defensenews.com/story.ph...

Additionally, within the last week, three of the main underwater cables which carry Internet traffic have been cut off in the Persian Gulf and three-quarters of the international communications between Europe and the Middle East have been lost. Large parts of the Middle East have been plunged into darkness.

Is this merely a coincidence or is something else going on just below the surface?

Ian Brockwell, of the American Chronicle said:

"On the assumption that the cables cut were no accident, we must ask ourselves who would do such a thing and why. Clearly Iran, who were most affected, would gain nothing from such an action and are perhaps the target of those responsible?...Maybe this is a prelude to an attack, or perhaps a test run for a future one?

Communication has always been an important factor in military action, and cutting these cables might affect Iran´s ability to defend itself." (American Chronicle,

http://www.americanchronicle.com/ar...

Despite the lack of media coverage, tensions are mounting in the Gulf and the probability of a US-led attack on Iran is still quite high. Bush is convinced that if he doesn’t confront Iran, then no one will. He also believes that if he doesn’t militarily defend the dollar, then America’s days as “the world’s only superpower” will soon be over. So, the real question is whether Bush will realize that America is already hopelessly bogged-down in two “unwinnable” conflicts or if he will “go with his gut” once again and lead us into a ruinous region-wide conflagration.

www.globalresearch.ca/PrintA...



Leave a comment
Print this article


Commentaires de l'article
 

Fragile Dollar Hegemony: Iran’s Oil Bourse could Topple the Dollar
Tuesday February 5 - 19:28 - Posted by a58c67af0edf5d30...

Does Iran really need a new bourse? After all, if you have kept up with real news on the net, Abu Dhabi, Kuwait, the United Emirates, heck virtually every oil exporting country in the world, major exceptions Canada and Saudi Arabia, have already unpegged their currencies from the US dollar and are using other more stable currencies, [mostly euros, yen and the yuan] for all their oil transactions.

It is lunacy for any oil exporter to continue to peg their nation’s currency to an exorbitantly overvalued US dollar. To continue to do so will only drag their own economies to the ground.

This is one major reason as to why the US dollar keeps falling, most of the world’s oil exporting countries are getting rid of the dollar for their oil transactions and they are getting rid of those dollars fast.

This means end game for the neocons and their military adventures.
For without a vibrant economy and a stable currency, empire building is unsustainable and too often self-destructive. Just ask the Romans, the French of the late 18th Century, or the Soviets for that matter.

How can anyone run a military machine as gargantuan as the US military with a dollar that shrinks at every turn and with an economy that is rapidly going down the tubes?

Remember the US is no longer and hasn’t been for nearly a decade, the world’s industrial giant, nor is it the world’s greatest economic power either, the nations of the Far East have taken over the former position, and as of this past year, the EU has a greater GDP than the US.

A nation that continues to feed its giant military machine (the US outspends the rest of the world COMBINED in defense expenditures, well over $500 billion a year) on a receding economy burdened with an aging & dwindling industrial base as well as a humungous debt load of over $9 trillion will very soon go bankrupt. Very soon, as in within two or three years if not sooner.

Can you spell ’Weimar Republic’?

And the final clincher: 55% of the US national debt is in the hands of foreign central banks, who are also rapidly trading in those dollars for something of real value and stability.

AS Napoleon succintly said ’An army travels on its stomach’.
Quite true, and without any REAL money, there will soon be no food in the US military’s stomach and no real stomach to fight endless, useless and costly wars all for the sake of a fake "Pax Americana".







Public Apology to Women of the World from The American Republic (Hypatia of Alex
Monday 31 - 15:21
by Willam Morgan
YES, THERE WILL BE ELECTION FRAUD, AND ON A GRAND SCALE
Sunday 23 - 18:32
by JOHN CHUCKMAN
Hillary Clinton will be first female President 2017
Monday 10 - 17:21
by Willam Morgan
Police Shootings: Law, Policy, and Accountability
Thursday 6 - 14:22
by William John Cox
AMERICA DESERVES BETTER, BUT EVEN MORE IMPORTANTLY, THE WORLD DESERVES BETTER
Thursday 29 - 18:02
by JOHN CHUCKMAN
Back to School for Fascist Dupont-Aignan
Thursday 15 - 11:32
by Nouveau Comité de Vigilance des Intellectuels Antifascistes
The Presidency: Character Matters
Friday 9 - 15:06
by William John Cox
WHY HILLARY IS THE PERFECT PERSON TO SECURE OBAMA’S LEGACY
Tuesday 30 - 18:08
by JOHN CHUCKMAN
Remake of Ben Hur in 2020 planned by new motion picture studio
Friday 26 - 15:50
by Wallace
THE CASE FOR DONALD TRUMP
Monday 22 - 19:32
by JOHN CHUCKMAN
THE CONSTITUTION OF THE UNITED STATES IS DEAD
Thursday 11 - 06:42
by David R. Hoffman, Legal Editor of Pravda.Ru
DONALD TRUMP AND THE GENIUS OF IDIOCY
Friday 5 - 00:47
by David R. Hoffman, Legal Editor of Pravda.Ru
FOOLING MOST OF THE PEOPLE MOST OF THE TIME IS WHAT AMERICAN POLITICS ARE ABOUT,
Friday 29 - 18:13
by JOHN CHUCKMAN
A message of your fellow striking workers from France
Tuesday 12 - 20:49
by Info’Com-CGT
The Right to Vote, Effectively
Friday 8 - 22:20
by William John Cox
Fourth of July Lies
Sunday 3 - 19:41
by June C. Terpstra
Who Should Make Political Policy, the People or the Politicians?
Friday 24 - 15:14
by William John Cox
Hollow Women of the Hegemon Part II: Atrocity Enabling Harpies
Tuesday 21 - 18:49
by Dr. June Terpstra
The American Republic Manifestum book is being made into a Movie
Saturday 11 - 15:54
by William Morgan
Write-in Voting and Political Protest
Wednesday 1 - 15:05
by William John Cox
Yves Bouvier art battle plays out in online and social media arena
Tuesday 31 - 21:12
by Dean Bagley
Damaged Candidate Clinton Can’t Call Out Trump
Friday 27 - 13:53
by Daniel Patrick Welch
PLEDGE OF THE NEW REPUBLICAN PARTY
Tuesday 24 - 21:53
by David R. Hoffman, Legal Editor of Pravda.Ru
LET TEXAS SECEDE
Thursday 19 - 00:53
by David R. Hoffman, Legal Editor of Pravda.Ru
LAS TRES ERRES A LA ENÉSIMA POTENCIA.-
Monday 16 - 15:35
by FREDDY SUBDIAGA
DEMAGOGIA POPULISTA...
Monday 16 - 15:26
by FREDDY SUBDIAGA
Oligarchs Won’t Let You Vote Their Wars Away
Wednesday 11 - 20:24
by Daniel Patrick Welch
AN AMERICAN ORIGINAL: JOHN KERRY - FROM HIS REMARKABLE RECENT COMMENCEMENT ADDR
Monday 9 - 20:40
by JOHN CHUCKMAN
Donald Trump and Hillary Clinton support the American Republic Manifestum
Monday 9 - 16:37
by William Morgan
Transformation: A Student-Led Mass Political Movement
Monday 25 - 19:28
by William John Cox
Algerian Feminists react to ’Hijab Day’ in Paris 2016
Monday 25 - 01:13
THE ILLUSION OF RIGHTS
Friday 22 - 18:45
by JOHN CHUCKMAN
US is real superpredator pretending to be victim
Monday 18 - 22:23
by Daniel Patrick Welch
Gaiacomm International has accidently created a fusion reaction/ignition.
Sunday 17 - 17:01
by William Morgan
Clinton’s Campaign Continues to Highlight Horrible Hillary
Saturday 9 - 00:57
by Daniel Patrick Welch
Armoiries racistes à Harvard : Plaidoyer pour la réflexion socio-historique
Thursday 7 - 18:56
by Samuel Beaudoin Guzzo
THANK YOU MISSISSIPPI FOR YOUR HATE
Wednesday 6 - 02:02
by David R. Hoffman, Legal Editor of Pravda.Ru
The PKK in Iraq: “We are ready to fight ISIS everywhere in the world”
Monday 4 - 14:33
by InfoAut
Clinton Crashes and Burns, Sanders Will Win (But hold off on the applause)
Friday 1 - 22:33
by Daniel Patrick Welch
Confirming Supreme Court Justices and Electing Presidents
Friday 1 - 20:59
by William John Cox

home | webmaster



Follow-up of the site's activity
RSS Bellaciao En


rss FR / rss IT / rss ES



Bellaciao hosted by DRI

It is the responsibility of the intellectual to speak the truth and to expose lies. Noam Chomsky
Facebook Twitter Google+
DAZIBAO
I, European citizen, won’t let refugees be rejected in my name
Thursday 10 March
©Olivier Jobard/Myop I, European citizen, won’t let refugees be rejected in my name THE RIGHT TO ASYLUM IS A RIGHT In the phrase « right to asylum », every word matters. Under the law, every person who is persecuted because of his or her political opinions or because of his or her identity, every person that is endangered by violence, war or misery has a RIGHT to seek asylum in another country The aim of this petition is to collect (...)
read more...
Neo-Nazis and far-right protesters in Ukraine 3 live-stream
Friday 24 January
2 comments
The far-right in Ukraine are acting as the vanguard of a protest movement that is being reported as pro-democracy. The situation on the ground is not as simple as pro-EU and trade versus pro-Putin and Russian hegemony in the region. When US Senator John McCain dined with Ukraine’s opposition leaders in December, he shared a table and later a stage with the leader of the extreme far-right Svoboda party Oleh Tyahnybok. This is Oleh Tyahnybok, he has claimed a "Moscow-Jewish mafia" (...)
read more...
Hugo Chavez is dead (video live)
Wednesday 6 March
by : Collective BELLACIAO
1 comment
President Hugo Chavez companeros venezueliano died after a long battle with cancer.
read more...
International initiative to stop the war in Syria Yes to democracy, no to foreign intervention!
Thursday 13 December
Your support here: http://www.peaceinsyria.org/support.php We, the undersigned, who are part of an international civil society increasingly worried about the awful bloodshed of the Syrian people, are supporting a political initiative based on the results of a fact-finding mission which some of our colleagues undertook to Beirut and Damascus in September 2012. This initiative consists in calling for a delegation of highranking personalities and public figures to go to Syria in order to (...)
read more...
THE KU KLUX KLAN ONCE AGAIN CONTROLS INDIANA
Monday 12 November
by : David R. Hoffman, Legal Editor of Pravda.Ru
7 comments
At first glance, the results of America’s 2012 election appear to be a triumph for social, racial, and economic justice and progress in the United States: California voters passed a proposition requiring the rich to shoulder their fair share of the tax burden; Two states, Colorado and Washington, legalized the recreational use of marijuana, while Massachusetts approved the use of marijuana for medical purposes; Washington and two other states, Maine and Maryland, legalized same-sex (...)
read more...
I’VE DECIDED TO "WASTE" MY VOTE
Sunday 28 October
by : David R. Hoffman, Legal Editor of Pravda.Ru
In a 2004 episode of Comedy Central’s animated series South Park, an election was held to determine whether the new mascot for the town’s elementary school would be a “giant douche” or a “turd sandwich.” Confronted with these two equally unpalatable choices, one child, Stan Marsh, refused to vote at all, which resulted in his ostracization and subsequent banishment from the town. Although this satirical vulgarity was intended as a commentary on the two (...)
read more...
HIGHER EDUCATION IN AMERICA: DREAM OR NIGHTMARE? PART IV
Friday 28 September
by : David R. Hoffman, Legal Editor of Pravda.Ru
PART I PART II PART III If there is one major inconsistency in life, it is that young people who know little more than family, friends and school are suddenly, at the age of eighteen, supposed to decide what they want to do for the rest of their lives. Unfortunately, because of their limited life experiences, the illusions they have about certain occupations do not always comport to the realities. I discovered this the first time I went to college. About a year into my studies, I (...)
read more...
HIGHER EDUCATION IN AMERICA: DREAM OR NIGHTMARE? PART III
Friday 28 September
by : David R. Hoffman, Legal Editor of Pravda.Ru
PART I PART II PART IV Disillusioned with the machinations of so-called “traditional” colleges, I became an adjunct instructor at several “for-profit” colleges. Thanks largely to the power and pervasiveness of the Internet, “for-profit” colleges (hereinafter for-profits) have become a growing phenomenon in America. They have also been the subject of much political debate and the focus of a Frontline special entitled College Inc. Unlike traditional (...)
read more...
HIGHER EDUCATION IN AMERICA: DREAM OR NIGHTMARE? PART II
Friday 28 September
by : David R. Hoffman, Legal Editor of Pravda.Ru
PART I PART III PART IV Several years ago, a young lady came into the college where I was teaching to inquire about a full-time instructor’s position in the sociology department. She was advised that only adjunct positions were available. Her response was, “No thanks. Once an adjunct, always an adjunct.” Her words still echo in my mind. Even as colleges and universities raise their tuition costs, they are relying more and more on adjunct instructors. Adjuncts are (...)
read more...
HIGHER EDUCATION IN AMERICA: DREAM OR NIGHTMARE? PART I
Friday 28 September
by : David R. Hoffman, Legal Editor of Pravda.Ru
PART II PART III PART IV When The Bill of Rights was added to the United States Constitution over two hundred years ago, Americans were blessed with many rights considered to be “fundamental.” One conspicuously missing, however, was the right to an education. This was not surprising given the tenor of the times. America was primarily an agrarian culture, and education, especially higher education, was viewed as a privilege reserved for the children of the rich and (...)
read more...
ONE SOLITARY LIFE, PART TWO
Monday 30 July
by : David R. Hoffman, Legal Editor of Pravda.Ru
3 comments
If there is one universal question that haunts all human beings at some point in their lives, it is, “Why do we die?” Death, after all, is the great illogic. It ultimately claims all, the rich and the poor, the mighty and the small, the good and the evil. Death also has the capability to make most human pursuits—such as the quest for wealth, fame and power—vacuous and fleeting. Given this reality, I have often wondered why so many people are still willing to (...)
read more...
HOW MUCH CORRUPTION CAN DEMOCRACY ENDURE?
Thursday 28 June
by : David R. Hoffman, Legal Editor of Pravda.Ru
6 comments
How much corruption can a “democracy” endure before it ceases to be a democracy? If five venal, mendacious, duplicitous, amoral, biased and (dare I say it) satanic Supreme Court “justices”—John Roberts, Samuel Alito, Antonin Scalia, Clarence Thomas and Anthony Kennedy—have their way, America will soon find out. In several previous articles for Pravda.Ru, I have consistently warned how the Supreme Court’s 2010 Citizens United decision is one of the (...)
read more...
DEMOCRACY IN THE HANDS OF IDIOTS, PART TWO
Tuesday 12 June
by : David R. Hoffman, Legal Editor of Pravda.Ru
1 comment
Imagine, if you will, that the United States government passes a law banning advertisers from sponsoring commercials on Rush Limbaugh’s radio show or Rupert Murdoch’s Fox (Faux) “News” Network. On one hand, there would be two decided advantages to this ban: The National IQ would undoubtedly increase several percentage points, and manipulative pseudo-journalists would no longer be able to appeal to the basest instincts in human nature for ratings and profit while (...)
read more...
DEMOCRACY IN THE HANDS OF IDIOTS
Thursday 7 June
by : David R. Hoffman, Pravda.Ru Legal Editor
4 comments
LIVE, from the State that brought you Senator Joseph McCarthy, Wisconsin voters now proudly present, fresh from his recall election victory, Governor Scott Walker! At first glance, it is almost unfathomable that anyone with a modicum of intelligence would have voted to retain Scott Walker as Wisconsin’s governor. This, after all, is a man who openly declared he is trying to destroy the rights of workers through a “divide and conquer” strategy; who received 61% of the (...)
read more...
PEOPLE WITHOUT SOULS
Tuesday 13 March
by : David R. Hoffman, Legal Editor of Pravda.Ru
2 comments
A question I’ve frequently been asked since I began writing for Pravda.Ru in 2003 is, “Why did you become disillusioned with the practice of law?” This question is understandable, particularly since, in most people’s minds, being an attorney is synonymous with wealth and political power. I’ve always been reluctant to answer this question for fear it will discourage conscientious and ethical people from pursuing careers in the legal profession—a (...)
read more...