The last gasp of the dollar;
The last gasp of the dollar; Iran bourse set to open shortly
By Mike Whitney
Online Journal Contributing Writer
May 8, 2006, 00:17
"Everybody knows the real reason for American belligerence is not the Iranian nuclear program, but the decision to launch an oil bourse where oil will be traded in euros instead of US dollars. . . . The oil market will break the dominance of the dollar and lead to a decline of global American hegemony." Igor Panarin, Russian political scientist.
Overnight the story of Iran’s proposed oil bourse has slipped into the mainstream press exposing the real reason behind Washington’s hostility towards Tehran. Up to this point, analysts have brushed aside the importance of the upcoming oil-exchange as a "Leftist-Internet" conspiracy theory unworthy of further consideration. Now, the Associated Press has clarified the issue showing that an Iran oil bourse "could lead central bankers around the world to convert some of their dollar reserves into euros, possibly causing a decline in the dollar’s value". ("Iran wants Oil Market in Euros", Globe and Mail)
Currently, the world is drowning in dollars, even a small movement could trigger a massive recession in the United States. There’s nothing remotely "conspiratorial" about this. It is simply a matter of supply and demand. If the oil bourse creates less demand for the dollar, the value of the dollar will sink accordingly; pushing energy, housing, food and other prices higher.
[...]
By Mike Whitney
Online Journal Contributing Writer
May 8, 2006, 00:17
"Everybody knows the real reason for American belligerence is not the Iranian nuclear program, but the decision to launch an oil bourse where oil will be traded in euros instead of US dollars. . . . The oil market will break the dominance of the dollar and lead to a decline of global American hegemony." Igor Panarin, Russian political scientist.
Overnight the story of Iran’s proposed oil bourse has slipped into the mainstream press exposing the real reason behind Washington’s hostility towards Tehran. Up to this point, analysts have brushed aside the importance of the upcoming oil-exchange as a "Leftist-Internet" conspiracy theory unworthy of further consideration. Now, the Associated Press has clarified the issue showing that an Iran oil bourse "could lead central bankers around the world to convert some of their dollar reserves into euros, possibly causing a decline in the dollar’s value". ("Iran wants Oil Market in Euros", Globe and Mail)
Currently, the world is drowning in dollars, even a small movement could trigger a massive recession in the United States. There’s nothing remotely "conspiratorial" about this. It is simply a matter of supply and demand. If the oil bourse creates less demand for the dollar, the value of the dollar will sink accordingly; pushing energy, housing, food and other prices higher.
[...]
posted by TheFuriousGourmet | 9:45 AM
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