The Upcoming Iranian Oil Bourse
Sunday, December 18, 2005
From an article By William R. Clark at Information Clearing House:
Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil BourseDespite the complete absence of coverage from the five U.S. corporate media conglomerates, these foreign news stories suggest one of the Federal Reserve's nightmares may begin to unfold in the spring of 2006, when it appears that international buyers will have a choice of buying a barrel of oil for $60 dollars on the NYMEX and IPE - or purchase a barrel of oil for €45 - €50 euros via the Iranian Bourse. This assumes the euro maintains its current 20-25% appreciated value relative to the dollar – and assumes that some sort of US "intervention" is not launched against Iran. The upcoming bourse will introduce petrodollar versus petroeuro currency hedging, and fundamentally new dynamics to the biggest market in the world - global oil and gas trades. In essence, the U.S. will no longer be able to effortlessly expand credit via U.S. Treasury bills, and the dollar's demand/liquidity value will fall.
It will be interesting to see if Mr. Clark's predictions come true. Oh, and another thing... Now that you've read the above bit, you can't unlearn it. If it comes true, you will have known about it well in advance. If Iran is attacked before they implement their oil bourse, you'll have to question our motivations. Sorry about that.
posted by Don Bangert | 5:16 PM
2 Comments:
This could spell bad news for the economy. I`m going to link it up at my site.
Good work, Don!
Actually this is bigger than what is even being reported. This was the whole point of creating the Euro, to compete with the US dollar in foriegn markets. Part of the devaluation in recent months with the dollar is that foreign countries are starting to invest and hold money in the Euro rather than the US Dollar. So it's foriegn banks against US banks.
Difranco AT Minuteofangle dot Us
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