Petro-dollar and Iran war
Posted in the Iran Forum
Since: Feb 10
556. Petro-dollar, the cause of Iran war (7/4/08)
People think the nuclear ambition of Iran is the reason for Iran war. That is only right on Israel's part. For US part, it is petro-dollar.
US dollar is appointed currency in oil trading. Because the oil trade is a huge business, a large amount of dollar is locked up in that trade. That money is called petro-dollar. Why it is so important to US? Because it acts as a long term none interest loan The prosperous US economy partly was based on the petro-dollar - a long term loan without interest. Let me depict it in this way:
US bought a house from Japan (whom represents the oil customers of Iran) for one million dollars. US also bought another house from France (whom represents other oil customers of OPEC) for one million dollars. Japan and France use these two million dollars as fund to buy oil. The money was used in oil trading circle and never back to US. US enjoys the two houses almost free. He doesn't have to pay monthly mortgage payment. Not a penny for interest, nor for principle. All the cost was the printing of a green back paper. However, that green back paper - petro dollar, is still a debit note. How long is it? So far it's more than forty years - since dollar became the appointed oil trade currency.
But suddenly, Iran refuses to accept dollar. Japan has to ask US to exchange that one million dollar into Euro or yen. What US can do is: 1. to get the dollar back by export more merchandise. But he is not able to. He has a trade deficit already. 2. To get the dollar back with gold or foreign currency reserve. But he hasn't that much reserve. 3. To lock up that extra one million dollar in US Bond by raising the interest rate to attract the buyer. But he unwilling to do it. There is a sub-prime crisis in real estate market. Any interest increase will further devalue the house. Feds holds a large amount of real estates in my case, they don't allow such thing to happen. So to solve the problem, they go to the fourth option. 4. By pushing up the oil price.
France (other oil consumption countries) keeps one million dollar as oil trading fund. How much does he need if the oil price doubled? Two million. Thus the one million dollar Japan abandoned is absorbed by France. That's why the oil price jumped like crazy in recent days - a tricky way to keep US dollar from collapsing.
US has to pay for high oil price too. Ordinary people bear the cost. But the high oil price will hurt the economy. The condition won't last long. So war on Iran is unavoidable.
Of course, US is a "democratic" country. It can't start a war because others refusing to use its currency. Then beware of another 911 style false flag attack.
We know there was an incident of live nuclear head weapons being carried over the continental US by a B-52 last August. There is attempt of dirty bomb attack in Houston this year.
Quote, "State of Emergency: The US in the Final Six Months of the George W. Bush Administration
by Lewis Seiler and Dan Hamburg
June 13, 2008 by CommonDreams.org
Former National Security Agency analyst and naval intelligence officer Wayne Madsen has been in Houston investigating the Carnaby case at great personal risk. Madsen believes Carnaby was involved both in heading off a potential war with Iran (by leaking Mossad plans to assassinate Hezbollah leader Hassan Nasrallah just days before Carnaby himself was killed) and in trying to forestall a potential terrorist attack on the port.
According to Madsen,“federal agents in Houston fear that ‘another 9/11-type part false flag’ attack is imminent, perhaps as early as July 4.”.......
Another time factor for Iran war is the Olympic Game in August. China has interest in Iran. He is an oil customer of Iran. Olympic Game could be an extortion chip for China's support in Iran war.
Since: Feb 10
621. Big plot in later January (1/16/2010)
Defense Secretary Robert Gates, the lone holdover from the Bush administration, will stay on his job for at least another year.
One year ago, I've said that Robert Gates' career prolonged for Iran war,(see #582) and a financial crisis had been created to save the dollar. In that year- 2009, there were two attempts to war on Iran. The first attempt was between April and July, when N.Korea tested the ballistic rockets and nuclear explosion. The second one was in the end of 2009 when Iran was revealed to have a secret nuclear facility in Qum and was given a three months ultimatum. The plan went soured, so the situation goes back to the similarity of early 2009. I would say what I said in #582 is very correct. Robert Gates has to stay for the planed Iran war. The only difference is, in the end of 2008, dollar was strengthened because of the break out of financial crisis. Panicked dollar were driven to the US bond, so the oil price was eased to below $40/barrel. Now it is pushed to $80/barrel to balance the dollar.
To solve the problem, the war on Iran is still inevitable. And you see Gates prolongs his post of Defense Secretary for another time.
The Iran war may break out as early as later January.
I said so based on the following news.
1. Media on January 13, reported that "Responding to a highly sophisticated cyber attack alleged done by Chinese government, Google threatens to exit China."
2. Iranian Cyber Army hit Baidu, China’s Internet search engine, Monday.
New York, January 13 --
Users who visited Baidu’s Web site were confronted with a picture of an Iranian flag and a message,“This site has been hacked by the Iranian Cyber Army."
Big Internet company such like AOL, MSN., all collaborate with the Feds. In order to censor my journal style article "The dark side of USA", they both shut down their important sites of Hometown and community web sites.(see "573. Big operation to censor my message (10/17/08)") Google did same thing.(I'll talk about it later) It's funny when they pretend to be critical on China. US did same thing in covert way.
So when Google and China play a show like this, it may indicate there will be a big cyber attack in the Internet. China may play the role of "alleged hacker". The sites which have my postings will be hacked and my revelation will be lost. Of course, the prerequisite is there would be a framed drug case and I was eliminated.
As for the second news, it was apparently a provocateur case, an effort to suppress China to support Iran in coming Iran war. The two news appear in same day is not a coincidence.
I call it a big plot because besides the war, there may come with a big earthquake. Feds create big events to distract.
Since: Feb 10
622. A case in early 2010 (1/26/2010)
China plays big role in framed drug case. The payment is big too. One of the payments is the punishment of former President of Taiwan - Chen Shui-Bian. Chen is a fanatical eulogist of Taiwan independence, so he is the most hated person of Chinese government. Chen is also a puppet of the US. Unfortunately he is sold by his master once the Feds thought their interest was more important than their puppet's. Chen Shui-Bian was arrested for corruption. The case started when Switzerland revealed that Chen's family committed the crime of money laundry. No one has the power to force Switzerland to do so except the Feds. Yuan Hong-bing, a Chinese dissident writer, in his new book "Big doom of Taiwan", revealed that the Cheng Shui-bian's case was the result of "China's persuasion on US which forced the bank of Switzerland betrayed its customer". Yuan didn't say why US would sell its ally to a potential rivalry. I have talked about the secret deal long time ago.
Cheng Shui-bian is in custody. He proposed to bail out four times but all failed. His punishment becomes a chip too. His jail term will be confirmed once the framed drug case is done. So his detaining is prolonged again and again. The timing is synchronized with the drug case.
The latest bail out proposal was on 12/23, 2009. It failed.(It coincidences with the Iran war date if you still remember that US gave Iran a three months ultimatum on 9/25/2009 that ends on 12/25/2009.) The court prolongs Chen's detaining for another two months which means Chen will be sentenced before February 23.
Another timing coincidence is the Patriot Act. The key section of Patriot Act was set to expire on 12/31/2009. As other plot failed to be carried out, it was extended too.
The House approved the Pentagon measure. "It also included short extensions of the USA Patriot Act ... and several other expiring laws and programs as well as two more months in jobless pay and health care for the unemployment." (San Jose Mercury News 12/17/09)
The controversial Patriot Act included with "library record", "roving wiretap" and "lone wolf" provisions. All these three, I think, are particular set up for me.(See " 231. Lone wolf (5/29), 334. Patriot Act meeting on 7/21 (8/17/05), 545. Warrantless wiretapping law and my case (3/19/08)")
Iran war attempt went soured; Robert Gates stays in post for another year. Patriot Act expired; it was temporary extended to early next year. The detaining of former Taiwan president Chen Shui-bian is prolonged to February 23. All are waiting for the Feds to frame a new drug case in early 2010. We all see Feds are working hard for it: Google's internet hacking case; Bin Laden's new tape announcement; and Haiti earthquake. They try to make it a big one to cover up a drug case because it is a framed one.
Robert Gates not only the lone lift over from Bush Administration , but the only honest and intelligent one too from that dark administration .
Since: Feb 10
582. Robert Gates' career prolonged for Iran war (1/15/09)
Petro dollar benefits US economy a lot. When Iran abandons dollar as oil trading currency, it shakes dollar foundation significantly. To stabilize the dollar position, the war on Iran is inevitable. The latest attempt to war on Iran was failed in August 2008. Next month, in September, a financial crisis is created to save the dollar. The financial crisis push people to change the investment into cash - the dollar, and drives the dollar into a balloon - US bond. The Inside Group will keep that balloon for months, no longer than a year. They will keep that balloon until the Iran war break out.
The reason I said so is out of a decision made by the President elect - Obama. He decides to let Bush's Defense Secretary - Robert Gates to stay in chair for one more year. It means the Inside group still wants to finish Iran war within a year. They maintain that dollar balloon from popping until the war comes.
Robert Gates is a well selected neo-con follower. He is no other than Rumsfeld, Bush and Ashcroft. He has been chosen to command the soured Iran war of 2008 August. No one is more familiar with that war project then him. No one will work better than him with that military official group inside Pentagon which developed the Iran war project. It was an urgent war. If Bush can't stay in President seat, Gates will be the right person to stay for the war.
Barak Obama won the president election by his slogan "change". One important reason he won the campaign is because he said he opposes Iraq war. But when it touches the interest of the Inside Group, he has to obey. In an area where needs an utter "change", he reacts with "un change". He says he opposes Iraq war, because the bird is held in hand already. It doesn't cost anything but a lip service. But when his master gave an order, he will hug another war.
Politicians are picked up from the followers of the Inside Group. High ranking politicians have been all screened tier upon tier. They are all the same even though they pretend to be different by sticking a different sign of donkey or elephant. When people are tired of a white wolf, they gave you a black one. But on the core it's the same. Wolf won't change its habit to eat lamb.
There is a Chinese fable: Three for breakfast and four for super. It says a monkey keeper gave his monkey four nuts in breakfast and three for supper. Monkey felt hungry and protested. The keeper thought for a while than pretended compromise. He said, "OK, you win, I will give you three nuts in morning and four in the evening." Monkey thought it won because the keeper changed three into four for supper. So when Obama gives you four nuts for supper but three in the morning, do you think there is a change?
No body will go to war against IRAN.
REASON: there are no reason for USA or Israel to go to war , a costly one and very objectionable from International community of Nation .
ONLY Stupid make war.
OBAMS MAY NOT MAKE PEACE ,BUT HE WILL MAKE NO WAR EITHER> HE IS TOO SMART.
Since: Feb 10
629. Attack the Euro (3/13/2010)
Since Iran abandons dollar for Euro in its oil trading, a weak Euro would significantly hit Iran's economy. I saw in each attempt to have a war on Iran, it used to be followed with a plot to hit the Euro. The typical samples were: In January 2007, Russia had a dispute with Belarus and shut off the oil pipe for several days. In August 2008, Russia invaded Georgia where there was gas pipe line to Europe. In both events, if the crisis broadened, The oil and gas to Europe would have been cut. The European's economy would have been hurt and Euro would have depreciated. So would be Iran.
See "462. The collapse of Euro and worldwide economic crisis (1/20/07)", and "565. Georgia war and Russia, their role in Iran war (8/19/08)"
The resource to sabotage the Euro by the failures of energy supply exhausted. The plan to have war on Iran doesn't go through yet. What's next? We see the international financial speculators again.
You may have noticed that started from later January, the financial crisis of Greece became a hot topic in media. In article "The Bond Vigilantes who left Greece in Ruins" (Business Week 2/22/2010), the writer says, "On Feb.10, striking labor unions shut down schools.....
As of Feb. 10, European officials seemed to be angling for a compromise plan to aid Greece but on such harsh terms that no one else would want such a deal......
In the month through Feb.10, the yield on the Greek government's three-month bills soared from less than 1% to 4%....."
The timing reminded me of the Feb. 13 Chinese New Year's dinner plot. The Greek's financial problem was created for that plot. If the 2/13 plot went through, then there would be "terror attacks" which would have justify the war on Iran. At the same time Iran would have suffered a blow in its finance too - a devalued Euro. All these didn't go true because the 2/13 plot went soured.
Who created that crisis? In a meeting with President Obama on Mar.9, Greek Prime Minister George Papandreou called for a clampdown on financial speculators he blamed for worsening his country's situation. Who are those international speculators? Goldman Sach was picked up particularly: "Goldman stars in this Greek tragedy - The firm's currency and bond deals for Greece have drawn fire" (Business Week 3/1/2010)
Russia had disputed over its neighbor countries(Belarus, Ukraine, Georgia) with attempt to shut down the oil and gas supply to Europe. Now it's the PIG'S four countries.(Greece, Ireland, Portuguese and Spain). They will appear in turn to pull down the Euro once there comes a renewed Iran war plot.
Since: Feb 10
3. The main reason is not supply and demand. It's US manipulating the oil price by oil reserve and future contract.
(1) Quote, "The former Fed chief also detailed how investors, rather than users of oil, have come to set the price of oil through purchasing futures contracts." Though Greespan use "investors" instead of "speculators".
(2) From supply side:
08-03-05. OPEC to maintain current production; blames US for economic ’mismanagement’
Published: Wednesday, March 5, 2008 | 3:03 PM ET
Canadian Press: William Kole, THE ASSOCIATED PRESS
OPEC President Chakib Khelil told reporters the global market is being affected by what he called "the mismanagement of the U.S. economy," and that America's problems were a key factor in the cartel's decision to hold off on any action.
"If the prices are high, definitely they are not due to a lack of crude. They are due to what's happening in the U.S.," Khelil said. "There is sufficient supply. There's plenty of oil there."
Though Khelil uses "US economy" instead of "speculators".
(3) From demand side:
Quote, "Shell CEO says record oil not due to shortage
Thu May 22, 2008 5:24pm BST
(4) What US Senate Committee found:
Quote, "The real reason why oil prices are rising
June 02, 2008
The finding of US Senate Committee in 2006
In June 2006, when the oil price in the futures markets was about $60 a barrel, a Senate Committee in the US probed the role of market speculation in oil and gas prices. The report points out that large purchase of crude oil futures contracts by speculators has, in effect, created additional demand for oil and in the process driven up the future prices of oil.......
The report further estimated that speculative purchases of oil futures had added as much as $20-25 per barrel to the then prevailing price of $60 per barrel. In today's prices of approximately $130 per barrel, this means that approximately $100 per barrel could be attributed to speculation!...
*What is interesting to note is that the US strategic oil reserves were at approximately 350 million barrels for a decade till 2006. However, for the past year and a half these reserves have doubled to more than 700 million barrels. Naturally, this build-up of strategic oil reserves by the US (of 350 million barrels) is adding enormous pressure on the oil demand and consequently its prices.
Since: Feb 10
4. Oil price goes up when Iran abandon Dollar as its oil trade currency. Time table:
In the end of 2006 and early 2007, the oil price was about $60/barrel. When Iran expressed its intention to use the euro for foreign transactions.
It was about $70/barrel in early July/07. In six months, it rose 10 dollars per barrel.
06-12-18. Iran scraps Dollar, takes on Euro
Mon. 18 Dec 2006
Tehran, Iran, Dec. 18 - Iran's central bank will begin to use the euro for foreign transactions, replacing the long-established dollar system, government spokesman Gholam-Hossein Elham told reporters during his weekly press conference on Monday.
(2) Practising period.
From early July 2007 to the end of January 2008, in seven months, oil price rose from $60/barrel to $95/barrel. In this period, Iran completed its oil trading from dollar to foreign currency.
Quote, " Iran wants yen
July 13/2007 (Bloomberg)-- Iran asked Japanese refiners to switch to the yen to pay for all crude oil purchases, after Iran's central bank said it is reducing holdings of the U.S. dollar."
(3) Expand to future deal.
Early February 2008 to 7/4/2008, oil price was pushed up from $95 to $147 a barrel. That's a $50 dollars inflation in five months. Why I start this period from Februry 2008? Because Iran's Bourse inaugurated on Feb.17. When the oil customers of Iran have to buy the future contract by reserving more foreign currency in the bank, US has to push up the price, let other OPEC customers absorb the Petro-dollars dumped by Iran customers.
Quote, "Iran Oil Bourse to deal blow to dollar
Fri, 04 Jan 2008
The long-awaited Iranian Oil Bourse, a place for trading oil, petrochemicals and gas in various non-dollar currencies, will soon open.
Iran's Finance Minister Davoud Danesh-Jafari told reporters the bourse will be inaugurated during the anniversary of the Islamic Revolution (February 1-11) at the latest.
Some expert opinions hold inauguration of the bourse cold significantly devalue the greenback.
08-03-01. Iran shifts oil sales away from dollar
Sat, 01 Mar 2008
Deputy head of the National Iranian Oil Company for international affairs says Iran has completely dropped dollar in its oil sales.
In an interview with The Financial Times, Hojjatollah Ghanimifard said that over the past three months, Iran has received 75 percent of the proceeds from its oil sales in euros and the remaining 25 percent in the Japanese currency, yen.
Since: Feb 10
High oil price (5)(7/29/08)
In Oil (4) I talked about Iran intended to turn the oil trading from dollar into euro in December 2006. Did Iran deliberately do that? Read the following information:
468. Follow up to #467,#461 and #462 (2/20/07)
On 1/15 and 1/20, I wrote #461 and #462, alleged that US had set up a Euro trap for Iran: If the December plot started, Euro would collapse due to the collapse of WANTA fund and the shortage of oil supply to the Europe. Iran not only would be bombed, but also suffered a huge loss in finance. On 2/1, an article proved the correctness of my analysis.
Re: "The War on Iran
Thursday, 01 February 2007
By Stephen Gowans
In Paulson抯 view, Iran is still a major player globally, and needs to suffer the same pariah treatment.(New York Times, September 17, 2006) In October, US Treasury Department officials banned US banks from facilitating transactions involving Iran抯 state-owned Bank Saderat. In January, the ban was widened to include another Iranian bank, Bank Sepah.
When Iran sells oil to a customer in Germany, the German customer asks a European bank to deposit US dollars into an Iranian bank account. The European bank then arranges for the transfer of US dollars from a US bank to an Iranian bank account in Europe. Paulson抯 ban prohibits US banks from transferring funds if Bank Saderat and Bank Sepah are involved.(New York Times, October 16, 2006) With oil sales denominated in US dollars, the aim is to impede Iran抯 ability to sell oil. The way around the US manoeuvre is to sell oil in Euros, something Iran has already begun to do.(New York Times, January 10, 2007)
This would seem to be a simple enough way of beating the US at its own game. It also raises questions about the prudence of compelling Iran to switch to Euros, since a change to Euros, if adopted by a number of oil-exporting countries, would push down the value of the US greenback. US investment banker John Hermann, a comptroller of currency in the Carter administration, wonders whether the US is shooting itself in the foot.(New York Times, October 16, 2006)
In October, US blocked the financial transaction between US banks and major Iran bank which forced Iran to turn on to Euro instead of Dollar in oil trading. Two months later, if the December plot succeeded, Iran would suffer a big loss in finance. The US investment banker John Hermann wonders whether the US is shooting itself in the foot then. He wouldn't have that puzzle if he reads my messages."
It's no others but US himself who forced Iran to turn on Euro. In December 2006 they set up a Euro trap. But the plot went soured. Since the process is irreversible, and the Feds is unwilling to raise the interest, to save the dollar, they have to push up the oil price. We the people have to eat the bad fruit planted by the Feds.
Someone or a group inside the government created a situation to make war on Iran.
Since: Feb 10
6. Media's mind control (oil price 6)(8/12/08)
You may have noticed that all the information I referred to were from internet. The only mainstream newspaper in my area is San Jose Mercury. There is none news about Iran turns onto Euro and Japanese yen instead of dollar in oil trading, let alone the news that US treasury department banned the transactions between US banks and Iran's. There is no news about the Iranian Oil Bourse which was inaugurated on February 17, 2008 in a video conference ceremony from Tehran. The Iran oil trading transactions are made in Iranian rial and other major currencies since. This news is very important since it is a big turning point in US policy. Many big events were caused by this inauguration of Iranian Oil Bourse. I'll talk about it later.
The news which filled in tv screen and newspaper page are: Iran's speed boat charg at US vessel; Iran had missile test; Iranian training militias in Iraq; Iran rejects nuclear proposal; Nuclear program could result in more sanctions...... Iran is tarnished as a terrorist.
The similar tactic was seen before Iraq war when Saddam Hussain was described as a major threat to US. The false flag for Iraq is WMD; for Iran is its nuclear program. The real reason are the same: Both Iraq and Iran abandoned US dollars as currency in oil trading.
Saddam turned on to Euro in oil trading in 2000. In the end of that year, Bush got the seat of US president in a controversial election. When Clinton left the White House, he also left with a historical surplus in budget. There was no reason Demo would lose the 2000 president election. But what inside group needed was a war. In negotiation behind the curtain, Bush won the deal. He sold his soul to a devil by promising an unjust war - Iraq war. He was granted president. Of course, to justify the war, they prepared a false flag terror attack. Six months after Bush's inauguration, WTC changed hands.(Silverstein got the lease in July, 01) If you want to plant explosive in the building covertly without being aware by anyone else, you had to control the ownership of the building. Eight months later, we saw 911 attack.
The media waved the terror intimidation on people, targeted at Iraq then and now at Iran. Media censored every word on 911 truth even though there are a lot of flaws in this false flag attack and rarely talk about the story how Iran abandoned dollars as its oil trading currency. This is how the inside group control public's opinion by media. They wash your brain with the information they want you to know and censor the truth they want to hide from you. With media they play people as fools.
Media used to censor the news of US military threat on Iran, here is the recent one:
Quote, "Massive US Naval Armada Heads For Iran
Thursday, August 7, 2008
The lead American ship in these war games, the USS Theodore Roosevelt (CVN71) and its Carrier Strike Group Two (CCSG-2) are now headed towards Iran along with the USS Ronald Reagon (CVN76) and its Carrier Strike Group Seven (CCSG-7) coming from Japan.
They are joining two existing USN battle groups in the Gulf area: the USS Abraham Lincoln (CVN72) with its Carrier Strike Group Nine (CCSG-9); and the USS Peleliu (LHA-5) with its expeditionary strike group.
Likely also under way towards the Persian Gulf is the USS Iwo Jima (LHD-7) and .....
Will we see a big operation in near future? When China concentrates on Olympic Games and Russia engages in a sudden war.
you know block, you have your war criminals in Iraq in number of 50000 and 130 000 or more in Afghanistan. Your debts is 14 trillions of this your dollars what is dependent on your criminal, imperialistic policy of lost conqueror of the world-just your wars-genocide and crime against humanity (because all your invasions are lost - only your debts increase and it is not possible anymore to give money back to for all these countries which spend money. The next your spending will be to hats, because no normal country will give money for you). And till the end of your present invasions you will go bancruptcy and it will be no ideas about new wars.
Since: Feb 10
7. The big events relate to the Iran oil Bourse (8/22/08)
(1) Undersea cable cuts.
Iran's oil Bourse was planed to open during the anniversary of the Islamic Revolution (February 1-11) at the latest. It finally inaugurated on Feb. 17. What caused the delay? The communication problem - in a week or so, there were five under sea cable cuts.
2/3/08. Quote, "US Crashes Internet In Middle East After Saudi Threat, Russia Responds With Air Forces
By: Sorcha Faal, and as reported to her Western Subscribers
February 3, 2008
Reports circulating in the Kremlin today are painting a grim picture of just how desperate US War Leaders have become as their economy continues its freefall towards total bankruptcy by their crashing of Global Internet access for the Middle East's banking centers in Egypt, Saudi Arabia, Abu Dhabi, Iran, UAR, Turkey and Kuwait.
The significance to the severing of these cables is the Middle East Banking Centers being denied access to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), based in Brussels and which carries up to 12.7 million messages a day containing instructions on many of the International transfers of money between banks, lies in Saudi Arabia, or any other Middle East Nation, being unable to change their previously, before loss of communication, encoded currency instructions from being changed.
2/4/08. Conspiracy Theories and Cut InterTube Cables?
February 4, 2008 - Fourth Undersea Fiber Optic Cable Cut. Cable linking Qatar to the United Arab Emirates was damaged on Sunday, February 3, causing more telecommunication disruptions.
This month, Iran was supposed to open its own bourse, trading oil and oil futures in Euros and other currencies, but not the dollar. Delinking oil from the dollar would protect Iran from Bush's spendthrift invasion and occupation of Iraq, and the resulting collapse of the US dollar.
2/6/08. Submarine Cables, Subsidiares and Subversion
The Iranian oil bourse was going to be a stock market for petroluem, petrochemicals and gas. What is the big catch here? The exchange planned on being ran with currencies excluding the U.S. dollar....... So, obviously, the U.S. is not going to be happy about this. The biggest piece of information linking this to the recent damages is the proposed location of the bourse: the island of Kish. This is the island that is RIGHT NEXT TO at least two of the cuts that have recently occurred:
Some of you may suddenly be thinking to yourselves that this sounds familiar. That's because the last person who decided to stop using the U.S. dollar for trading oil was a man by the name of Saddam Hussein in the fall of 2000.
[UPDATE: To further add to this argument, this would not be the first time the U.S. would have disrupted submarine cables to further themselves in times of war or conflict.(Operation Ivy Bells < http://en.wikipedia.org/wiki/Operation_Ivy_Be... ;)(Previous NSA Submarine Wiretaps < http://news.zdnet.com/2100-9595_22-529826.htm... ;)]
Since: Feb 10
2/9/08. 5th cable cut fuels allegations of isolating Iran
Leslie D`Monte & Rajesh S Kurup / Mumbai February 9, 2008
Conspiracy theories of deliberately cutting communication lines to West Asia, primarily Iran, gained ground in the media and blogs as reports of another undersea cable cut - the fifth successive one in just a week's time - started emerging in cyberspace. While the extent of Iran's isolation was unclear, many blogs alleged that the cable cuts and outages in West Asia were a ploy by an intelligence agency to disrupt Iranian commerce, targeting an emerging petroleum exchange that the country was shortly hoping to roll out.
If a store refuses to accept someone's cheque due to his bad credit record, can that man intrude into the store and kill the manager and occupy that store? That's what US did to Iraq.
If another store refuses to accept someone's cheque due to his bad credit record, can that man cut the telephone line of that store as revenge? That's what US did to Iran. Now it sends a naval armada to the Persian Gulf.
If someone cuts the undersea cable in Hawaii and NewYork, what will US do? A war, I suppose. Now you can see who is the threat of the world.
Since: Feb 10
8. The big events relate to the Iran oil Bourse (9/1/08)
(2) Beside the undersea cable cuts in February, Bush regime decided to war on Iran in August. For this plan Pentagon cleaned high range military officials whom opposing the Iran war, either by firing them or eliminating by "natural disease".
Quote, " Fallon 'may lose job over Iran war'
Fri, 07 Mar 2008
Admiral William Fallon, the head of the US Central Command, may lose his job for opposing President Bush's plans to wage war against Iran.
The Navy admiral has vowed that an attack on Iran would 'not happen on his watch', calling the White House warmongering echelons 'not helpful'.
Fallon finally had to resign from his job in March.
Quote, " Iran invasion critic Gen. Odom dies of 'apparent heart attack'
01 Jun 2008- William E. Odom, a retired Army lieutenant general who was a senior military and intelligence official in the Carter and Reagan administrations and who, in recent years, became a forceful critic of the U.S.-led invasion of Iraq, died May 30 at his vacation home in Lincoln, Vt. An autopsy will be performed, but his wife said he had an apparent heart attack. Gen. Odom became a fixture on news programs and never altered his critical stance toward the Bush regime's policies in Iraq and Iran.
Quote, "Bush 'plans Iran air strike by August'
By Muhammad Cohen
NEW YORK - The George W Bush administration plans to launch an air strike against Iran within the next two months, an informed source tells Asia Times Online, echoing other reports that have surfaced in the media in the United States recently.
In July 1944 an agreement was reached at the United Nations Monetary and Financial Conference which pegged the value of gold at USD35 per ounce and the whole world looked on USD as the gold standard in purchases. But in 1971, US President Nixon took the USD off the gold standard after his administration realized that the US no longer had enough gold to buy back every dollar that foreign governments were handing in.
In 1973, US President Nixon asked King Faisal of Saudi Arabia to accept only the USD in payment for oil, and to buy US Treasury bonds, notes and bills with their excess profits, so that USA can continue spending money and not pay it back. In return, the USA pledged to protect Saudi Arabian oil fields from seizure by USSR and other nations including Iraq and Iran.
The 1973 Arab-Israeli War upset this agreement and caused the Great Oil Embargo of 1974. By 1975 the Great Oil Embargo was over and all members of Organisation of Petroleum Exporting Countries (OPEC) accepted to sell their oil only in USD. Every nation was saving their surpluses in USD since every country needed USD to buy oil. The OPEC oil sales supported the USD. The Petrodollar system was a brilliant political and economic move created a growing international demand for both the USD and US debt – all at the expense of OPEC.
Since only the US Federal Reserve can print the USD, the US control the flow of oil. The US essentially owns the world's oil for free because oil is denominated in USD and the USD is the only fiat currency for trading in oil.
So long as almost three quarter of world trade is done in USD, the USD is the currency which central banks accumulate as reserves. But central banks, whether China or Japan or Brazil or Russia, do not simply stack USD in their vaults. Currencies have one advantage over gold. A central bank can use it to buy the state bonds of the issuer, the USA. Most countries around the world are forced to control trade deficits or face currency collapse, but not the USA. This is because of the USD's reserve currency role and the underpinning of the reserve role is the petrodollar. Every nation needs to get USD to import oil, some more than others. This means their trade targets USD countries.
Because oil is an essential commodity for every nation, the Petrodollar system, which exists to the present, demands the buildup of huge trade surpluses in order to accumulate USD surpluses. This is the case for every country but one — the USA which controls the USD and prints it at will or fiat. Because today the majority of all international trade is done in USD, countries must go abroad to get the means of payment they cannot themselves issue. The entire global trade structure today works around this dynamic, from Russia to China, from Brazil to South Korea and Japan. Every country aims to maximize USD surpluses from their export trade. Currently over $13,000 billion of newly printed USD is flooding into international commodity markets each year.
The Petrodollar system nearly broke down during the US President Carter's tenure, mainly due to double digit inflation. But US President Reagan removed all controls on oil and fuel prices and all restrictions on oil drilling to restore the stability of the USD. Oil flooded the market, prices fell, and petrodollars became more valuable. These were some of the most prosperous years that the US had. But the danger remained, because the US continued to spend more USD than it earned.
US President Reagan saw the future of the US depending on the massive international consumption of oil, and encouraged the Saudi Arabia to flood the market. This brought the price of oil down and increased the consumption - a complete reversal of the 1973 oil embargo.
Increasing oil use boosted international demand for the USD and the US economy soared, while the low price of oil brought the USSR economy to its knees, as they could not sell oil at a profit due to their high extraction cost. The USSR finally collapsed in 1991.
Petrodollar system created consistent international demand for USD and upwards pressure on the USD's value, regardless of economic conditions in the US. The high USD allowed the US to buy imported goods at a massive discount, a kind of subsidy for US consumers at the expense of the rest of the world. The high consumption of imports, however, hit US manufacturing very hard. The overvalued USD was a major component of the bubble economy of the late 90's.
The reality is that the value of the USD is determined by the fact that oil is sold in USD. If the denomination changes to another currency, such as the euro, many countries would sell USD and cause the banks to shift their reserves, as they would no longer need USD to buy oil. This would thus weaken the USD relative to the euro. The USA propagates war to protect its oil supplies, but even more importantly, to safeguard the strength of the USD. The fundamental underlying motive of the US in the Iraq war, even more than the control of the oil itself, is an attempt to preserve the USD as the leading oil trading currency. The fear of the consequences of a weaker USD, particularly higher oil prices is seen as underlying and explaining many aspects of the US foreign policy, including the Iraq and Libyan War.
Until November 2000, no OPEC country dared violate the USD price rule. So long as the USD was the strongest currency, there was little reason to as well. But November 2000 was when France and other EU members finally convinced Iraq's Saddam Hussein to defy the USA by selling Iraq’s oil-for-food not in USD, but only in euros. Few months before the US moved into Iraq to take down Saddam Hussein, Iraq had made the move to accept Euros instead of USD for oil, and this became a threat to the global dominance of the USD as the reserve currency, and its dominion as the petrodollar. The euros were on deposit in a special UN account of a French bank, BNP Paribas.
If this Iraq move to defy the USD in favor of the euro were to spread, especially at a point the USD was already weakening, it could create a panic selloff of USD by foreign central banks and OPEC oil producers. In the months before the latest Iraq war, hints in this direction were heard from Russia, Iran, Indonesia and even Venezuela. In April 2002 at the invitation of the EU, in Oviedo Spain, Iranian OPEC representative Javad Yarjani delivered a detailed analysis of how OPEC at some future point might sell its oil to the EU for euros not USD.
All indications are that the Iraq war was seized on as the easiest way to deliver a deadly pre-emptive warning to OPEC and others, not to flirt with abandoning the Petro-dollar system in favor of one based on the euro. The Iraq move was a declaration of war against the USD. As soon as it was clear that the UK and the US had taken down Saddam Hussein's regime, a great sigh of relief was heard in the UK Banking cartels.
After considerable delay, Iran opened an oil bourse which does not accept USD. Many fear that the move will give added reason for the USA to overthrow the Iranian regime as a means to close the bourse and revert Iran's oil transaction currency to USD. In 2006 Venezuela indicated support of Iran's decision to offer global oil trade in euro.
Muammar Qaddafi made a similarly bold move, by initiating a movement to refuse the USD and the euro, and called on Arab and African nations to use a new currency instead, the gold dinar. Muammar Qaddafi suggested establishing a united African Union , with its 200 million people using this single currency. The initiative was viewed negatively by the USA and the European Union (EU), with French president Nicolas Sarkozy calling Libya a threat to the financial security of mankind. But Muammar Qaddafi continued his push for the creation of a united Africa.
Muammar Gaddafi’s proposal to introduce a gold dinar for Africa revived the notion of an Islamic gold dinar floated in 2003 by Malaysian Prime Minister Mahathir Mohamad, as well as by some Islamist movements. The notion, which contravenes IMF rules and is designed to bypass them, had had trouble getting started. But today Iran, China, Russia, and India are stocking more and more gold rather than USD.
If Muammar Qaddafi were to succeed in creating an African Union backed by Libya’s currency and gold reserves, France, still the predominant economic power in most of its former Central African colonies, would be the chief loser. The plans to spark the Benghazi rebellion were initiated by French intelligence services in November 2010.
The cost of wars are not nearly as big as they are made out to be. The cost of not going to war would be horrendous for the US unless there were another way of protecting the USD's world trade dominance. The US paid for the wars by printing more USD.
In February 2011, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), has called for a new world currency that would challenge the dominance of the USD and protect against future financial instability. In May 2011 a 32 year old maid, Nafissatou Diallo, working at the Sofitel New York Hotel, alleged that Strauss-Kahn had sexually assaulted her after she entered his suite. Strauss-Kahn quit IMF on May 18, 2011.
Iran and Venzuela have constantly been threatened by the US, for ccepting Chinese renminbi (RMB), also known popularly as the yuan for oil,. If euros, yens, renminby or rubles were generally accepted for oil, the USD would quickly become irrelevant and worthless paper. This petro dollar arrangement is enforced by the US military.
Venezuela reportedly has the largest oil reserves in the world. Venezuelan President Hugo Chavez has been a strong proponent for tighter Latin America integration which is a move away from the power of the US banking cartels.
Venezuelan President Hugo Chavez formed oil export agreements with Cuba, directly bypassing the Petrodollar System. Cuba was among those countries that were later added to the “Axis of Evil” by the USA. On Aug 18 2011, Venezuelan President Hugo Chavez announced a plan to pull Gold reserves from US and European Banks. On Aug 24, 2011 a 7 magnitude earthquake occured in Northern Peru bordering Venezuela which doesn’t use the Petrodollar system and Brazil which has been engaged in discussions to end USD denominated oil transactions.
Venezuelan President Hugo Chavez has accused the US of using HAARP (High Frequency Active Auroral Research Program) based weapons to create earthquakes. HAARP is an ionospheric research program that is jointly funded by the US Air Force, the US Navy, the University of Alaska and the Defense Advanced Research Projects Agency. The HAARP program operates a major Arctic facility, known as the HAARP Research Station, located on an US Air Force owned site near Gakona, Alaska.
HAARP has the ability to manipulate weather and produce earthquakes, since it is capable of directing almost 4 Mega Watts powerful radio waves in the 3 to 10 MHz region of the HF band up into the ionosphere. This energy can be bounced off of the ionosphere and permeate the earth and subsequently cause strong intense oscillations along fault lines of targeted areas to produce earthquakes. Using HAARP, depending on the frequency, focusing, wave shape, adversaries can induce at a distant aiming point, a variety anomalous weather phenomena such as hurricanes, flooding, or drought.
Any naturally-occurring earthquake has a ‘pulse-wave’ and several recent earthquakes did not have a pulse effect, indicating to seismologists that they could not have been caused naturally. According to several countries including Russia, China and Venezuela, HAARP type technology weapons are used against several countries causing severe destructions in Haiti, Japan, Russia, China, Iran, Chile, New Zealand, Afghanistan, Turkey etc.
If any country attempt to eliminate the Petrodollar system and dump surplus USD into the international and US financial markets to cause the quick collapse of the USD may be attacked with HAARP to destabilize its economy and currency and to prevent a move away from the USD and the Petrodollar system.
The credit crunch initiated in 2007 in the subprime mortgage market in the US had devastating spill-over effects for China's exports. The scarcity of USD, due to the repatriation and deleveraging flows into the American financial system caused a sudden plunge in the external demand for goods manufactured by China and triggered the consequent lay-off of several millions of workers in China. This experience encouraged China to use its own currency in trade.
The US may have averted a debt default by compromising on how to cut the US budget deficit, but underlying problems remain and those economic woes are driving a global search for an alternative reserve currency. The US now needs a net inflow of several billions USD a day to cover its deficit.
US economy is in a deep hole and US shouldn’t dig any more. Reckless money printing known as “Quantitative Easing” and economical stimulus packages introduced in the aftermath of the Credit Crunch, has made very little impact on the growth of US economy. Current US economical growth is not adequate enough to create jobs and to get an economy back on track. Now the banks are under enormous pressure to lend more money but reckless lending by banks got US into this mess in the first place. The economical problems in Greece, Spain and Italy are very precarious. The bailout phenomenon is not working in Greece which is on the brink of defaulting on its debt. It is impossible for the EU to bailout Italy which is the third largest economy in Europe.
In 2011 Russia began selling its oil to China in rubles. The US debt crisis adds new urgency to the China's efforts to promote its currency renminbi as an alternative reserve currency. China has already signed bilateral currency swap agreements with several countries ranging from Indonesia to Belarus and Argentina to promote the renminbi as a means of settlement in international trade. China’s growing trade and financial links with the rest of the world will make the renminbi more acceptable. If countries continue to lose their willingness to hold the USD the impact to the USD and the collapse of the USD could be very dramatic.
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