On March 20th, Iran’s Oil Bourse will stop accepting US dollars on all oil trades. Instead the Iranian exchange will accept a basket of currencies including the yuan, yen, rupee, and euro. This will finally end the “petrodollar monopoly”.
Oil is the world’s number one commodity, and oil is priced exclusively in US dollars. Everyone has to sell foreign currencies, and buy dollars, in order to purchase oil. This guarantees the dollar’s place as the world’s reserve currency.
Understand what the petrodollar monopoly means: The world has to buy our money. Without it, we cannot finance our massive deficits. We cannot wage our wars. And we cannot avoid the consequences of our dysfunctional economy.
Iran’s refusal to conduct their oil trade in dollars poses the most serious threat to US hegemony since World War II. If we go to war with Iran this Spring, know this: We are not going to war over Iran’s nuclear program.
We are going to war to save the dollar.
You’ve probably heard of the euro crisis: Europe is wracked by riots. Spain and Portugal have re-negotiated their debt payments. Greece has defaulted – again. Their governments are struggling with austerity measures, reductions in social services, and bailouts.
Contrast that with our situation. There are no riots here, (the staged “Occupy” protests notwithstanding), our government has not been forced to cut spending, or significantly raise taxes. And this while we run trillion dollar deficits.
Why? Because the dollar is the world’s reserve currency, and the euro isn’t. We can borrow a trillion dollars from the world, they can’t.
We don’t even have to pay for the trillion-dollar security apparatus that wages our wars. The rest of the world finances our empire. The Chinese, Japanese, and Europeans buy US Treasuries because those debt securities pay interest in US dollars – and they need those dollars for oil.
Since the financial crisis began, the United States has flooded global markets with trillions of dollars worth of US Treasuries. Nobody wants them, and soon the world won’t have to buy them. Starting next week, the world can purchase oil without buying dollars.
The dollar’s status as the world’s currency has never been more precarious. If the petrodollar monopoly falls, the US dollar will collapse. The hyperinflation of the dollar will send interest rates soaring. It will destroy our credit rating, and that means no more trillion dollar deficits. Then we will have riots and austerity measures.
If we go to war with Iran this Spring, it will be to enforce this monopoly. And it won’t be the first time.
Everyone knows that there were no weapons of mass destruction in Iraq. Nor was Saddam Hussein involved with al Qaeda, or the 9/11 attacks. But in November of 2000, he did decree that Iraqi oil would be sold exclusively in euros.
Within three years we had invaded Iraq, and quietly re-priced their oil in dollars. The fact that Saddam had freed Iraqi oil from the dollar was scarcely mentioned.
More recently, the late Muammar Qaddafi planned to sell Libyan oil in exchange for gold. He proposed a global market that would price oil in gold instead of dollars, and even dared to mint his own coins.
In return we destroyed Libya and murdered Qaddafi under a flag of truce. Libya is now ruled by armed gangs – But those gangs are selling Libyan oil in US dollars.
Now we are told that the Iranians are seeking weapons of mass destruction. They have threatened to close the Straits of hormuz. They want to “wipe israel off the map”. We hear these lies, but the media barely whispers the truth: Iran is abandoning the dollar on all oil trades.
The truth is: We are not going to liberate the oppressed Iranian people from the clutches of a brutal dictator. They elected Mahmoud Ahmadinejad President, and they are proud of him. They are also proud of their country’s defiance of the United States and israel. If we attack Iran, we can expect ferocious resistance from their armed forces and the population.
Iran is the world’s third largest oil exporter, and one third of their oil goes to China and India. The Iranians are already accepting Chinese remimbi and Indian rupees in exchange for that oil. They do not support our aggression against Iran, and we cannot expect them to simply stand by while we wage this war. If we attack Iran, we risk World War III.
Finally, Iran is a signatory to the Nuclear Non-Proliferation Treaty, and their nuclear program is perfectly legal and above board. The Iranians do not have weapons-grade uranium, and have not refined the uranium they do possess to make it suitable for a bomb. Even if they did, they could not make it into a bomb under the auspices of the IAEA.
The Iranians are not trying to make a nuclear bomb, and the world knows this.
The only nation in the Middle East that has nuclear weapons is our psychotic ally, Israel. The Jewish state reserves the right to launch a pre-emptive strike against Iran’s nuclear infrastructure at any time. And this from a country that refuses to allow U.N. Inspectors access to their arsenal, or sign the Nuclear Non-Proliferation Treaty.
The zionists are playing a very dangerous game, risking another war in the Middle east to save the dollar. But this game is only dangerous to us, not them. Israel will attack Iran. We will fight the war. That is their plan.
We may have another war in the Middle East this Spring. We may have hyperinflation. We may have both.
But this war will not be about weapons of mass destruction, or bringing freedom and democracy to Iran, or controlling the Straits of Hormuz. It won’t even be about oil.
We are going to war over money – their money.