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Iran Crisis – Follow The money, It’s All About Petrodollars

by Allen L Roland

 

As Obama refuses to acknowledge that Obamanomics is rapidly sinking ~ a closer look at the Iran crisis reveals, if you follow the money, that the real issue is petrodollars in that Iran is dumping the dollar in its trade with Russia as it has already done with China and Japan. As such, Regime Change is now the goal of the Obama administration as it was in 2000 when Iraq’s late Saddam Hussein abandoned the petrodollar and recently when Libya’s late Muammar Gaddafi proposed a gold dinar as currency for his energy resources.

Its classic good cop / bad cop with Obama positioning himself as the good cop who is trying to restrain an impetuous Israel who wants to attack Iran. Things got a little too dicey last week, with the Mossad assassination of an Iranian nuclear scientist, so Obama cancelled the joint war games with Israel ~ particularly since Israel still refuses to agree not to launch preemptive action against Iran without U.S. approval.

Here’s an insightful update from Real news with Paul Jay and investigative reporter Gareth Porter 14 minute Video 

US Israeli War-games Canceled

But as Pepe Escobar writes ~ “ This larger-than-life psychodrama we call “Iran” may turn out to be as much about China and the U.S. dollar as it is about the politics of the Persian Gulf or Iran’s nonexistent bomb .”

To get a handle on this psychodrama , we have to follow the money and that means the implied threat to petrodollars ~ which send shivers up the spine of the global financial elite. Escobar elaborates ~ “…consider 2012 the start-up year as well for a possibly massive defection from the dollar as the global currency of choice. As perception is indeed reality, imagine the real world ~ mostly the global South ~ doing the necessary math and, little by little, beginning to do business in their own currencies and investing ever less of any surplus in U.S. Treasury bonds.” 

Excerpt: “ That Iranian isolation theme only gets weaker when one learns that the country is dumping the dollar in its trade with Russia for rials and rubles — a similar move to ones already made in its trade with China and Japan.  As for India, an economic powerhouse in the neighborhood, its leaders also refuse to stop buying Iranian oil, a trade that, in the long run, is similarly unlikely to be conducted in dollars….Translation, if any was needed: in the near future, with the Europeans out of the mix, virtually none of Iran’s oil will be traded in dollars. In this context, it’s worth remembering that in September 2000 Saddam Hussein abandoned the petrodollar as the currency of payment for Iraq’s oil, and moved to the euro. In March 2003, Iraq was invaded and the inevitable regime change occurred. Libya’s Muammar Gaddafi proposed a gold dinar both as Africa’s common currency and as the currency of payment for his country’s energy resources. Another intervention and another regime change followed.”  See full story: 

So what we are really talking about now with Iran, as it was with Iraq and Libya, is REGIME CHANGE ~ for Obamanomics, like the Titanic, will surely sink unless those precious Eurodollars are investing in the ever growing surplus of U.S. Treasury bonds.

Pepe compares it to Poe’s classic  The Pit and the Pendulum  ~ “ If this were an economic rewrite of Edgar Allen Poe’s story, “The Pit and the Pendulum,” Iran would be but one cog in an infernal machine slowly shredding the dollar as the world’s reserve currency. Still, it’s the cog that Washington is now focused on.  They have regime change on the brain.  All that’s needed is a spark to start the fire (in — one hastens to add — all sorts of directions that are bound to catch Washington off guard).”

As Petrodollar expert William Clark writes regarding Petrodollar Warfare ~ “the upcoming Iran 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 its debt-financing via issuance of U.S. Treasury bills, and the dollar’s international demand/liquidity value will fall.”   See story

To make it simple, Obama is captain of a sinking ship, overloaded with ever increasing debt, but he still stands on the bow convinced he is flying when in reality he is just one spark, or a few minutes, or days away from a complete economic disaster.


About the Author: Allen L Roland is a Freelance Alternative Press Online columnist. He is also a practicing psychotherapist, author and lecturer who also shares a daily political and social commentary on his web site at AllenRoland.com. He also guest hosts a Truthtalk, a national radio show that airs monthly. He is available for comments, interviews, speaking engagements and private consultations via email at allen@allenroland.com.

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Posted by on Jan 21 2012, With 0 Reads, Filed under Editor, Iran, Opinion Maker, World. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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15 Comments for “Iran Crisis – Follow The money, It’s All About Petrodollars”

  1. The reason for the destruction of Nigeria – oil sold in US dollars

    http://rt.com/news/oil-subsidy-nigeria-imf-955/

    One major geopolitical factor that is generally ignored in recent discussion of Nigerian oil politics is the growing role of China in the country. In May 2010, only days after President Jonathan was sworn in, China signed an impressive $28.5 billion deal with his government to build three new refineries, something that in no way fits into the plans of either the IMF, or of Washington, or of the Anglo-American oil majors.
    China State Construction Engineering Corporation Limited (CSCEC) signed the deal to build three oil refineries with Nigerian National Petroleum Corporation (NNPC), in the biggest deal China has made with Africa. Shehu Ladan, head of NNPC, said at the signing ceremony that the added refineries would reduce the $10 billion spent annually on imported refined products. As of January 2012, the three Chinese refinery projects were still in the planning stage, reportedly blocked by the powerful vested interests gaining from the existing corrupt import system.

    A report in China Daily last November quoted Nigeria’s Olusegun Olutoyin Aganga, the minister of trade and investment, that Nigeria was seeking added Chinese investors for its energy, mining and agribusiness industries. Last September on a visit to Beijing, Nigeria central bank governor Lamido Sanusiannounced his country planned to invest 5 per cent to 10 per cent of its foreign exchange reserves in China’s currency, the renminbi (RMB) or yuan, noting that he sees the yuan becoming reserve currency. In 2010 China’s loans and exports to Nigeria exceeded $7 billion, while Nigeria exported $1 billion of crude oil, Sanusi stated.

    Until now Nigeria has held some 79% of her foreign currency reserves in dollars, the rest in Euro or Sterling, all of which look dicey given their financial and debt problems. The move of a major oil producer away from dollars, added to similar moves recently by India, Japan, Russia, Iran and others, augurs bad news for the continued role of the dollar as dominant world reserve currency. Clearly some in Washington would not be happy with that.

  2. China announces currency swap with Pakistan in new move to expand yuan’s use abroad
    Date: 24 Dec 2011

    http://kashmirwatch.com/world.php/2011/12/24/china-announces-currency-swap-with-pakistan-in-new-move-to-expand-yuan-s-use-abroad.html
    ——————————————————————————–

    China announces currency swap with Pakistan in new move to expand yuan’s use abroad

    By The Associated Press

    BEIJING, China – China has announced a currency swap with Pakistan in the latest step to gradually expand use of the tightly controlled Chinese currency abroad.

    The Chinese central bank said Saturday it swapped 10 billion yuan ($1.6 billion) for 140 billion Pakistani rupees. It said the exchange would promote investment and trade but gave no details of how the money would be used.

    China’s yuan doesn’t trade on global markets, but Beijing is gradually expanding its use for trade with some countries. It has carried out currency swaps with Argentina and Kazakhstan and agreed to lend yuan to other countries in case of emergencies.

  3. China seems to have found a way to use some of the trillions of US bonds that is owns. There are several areas in Asia where there are land and border disputes between nations and China is currently settling its border disputes with India, no doubt its US bonds will be off loaded to India and India can cash these in when needed. This will reduce China’s ownership of US bonds and make it harder for the US to play China and India off against each other. No doubt China will do the same for the situation between Pakistan and India. Both countries will then be able to be members of the Shanghai Cooperation Organisation.

  4. The beat goes on, as well as the blow back ~ India has agreed to pay the price of crude oil it imports from Iran in gold, which makes it the first country to drop the US dollar for purchasing the Iranian oil.
    According to a report published by DEBKAfile news website, unnamed sources have stressed that China is also expected to follow suit.
    India and China take about one million barrels per day (bpd), or 40 percent of Iran’s total exports of 2.5 million bpd and both of them have huge reserves of gold.
    The report added that by trading in gold, New Delhi and Beijing enable Tehran to bypass the upcoming freeze on its Central Bank’s assets and the oil embargo which the European Union’s foreign ministers agreed to impose on Monday, January 23.
    The EU currently buys around 20 percent of Iran’s oil exports.
    http://www.presstv.com/detail/222857.html

  5. ” The 44 year reign for the dollar as the global reserve currency is cracking, and very quickly, stronger economies are moving fast to facilitate trade in currencies other than the dollar, and in preparation for a time when the US no longer has dominion over global transactions…”

    Precisely, and the Presidents speech tonight, which was too frantic, too long, too political and too late, did little to impress these countries who rightully see the United States as a failing superpower who can no longer control and manipulate the world.

  6. INDIA TO BUY IRAN’S OIL IN GOLD

    The Western economies, especially the United States, are reliant upon the world purchasing oil using dollars as the standard reserve currency. Known as the petro-dollar, this agreement has been the prime catalyst in keeping the dollar afloat, and ensuring the US has global hegemony in international transactions. If that agreement should be repealed, and nations begin to purchase oil directly from OPEC and other oil producing countries using their own currencies or with assets such as gold, it would trigger a global run away from the dollar, and the US would quickly lose its dominant role in economic affairs.

    That could be precisely what is happening, and at an accelerated pace. Late in 2011, China and Japan created new agreements that would bypass the dollar, and commence trading directly with each others own currencies. Around the same timeframe, China and Russia also signed a new trade agreement which would engender using their own currencies in trade between themselves.

    With new EU sanctions, and the United States also formulating potential economic restrictions on Iran because of their ‘nuclear programs’, the Middle Eastern state is finding allies in the East which appear more than happy to transact oil sales in gold, not dollars. The 44 year reign for the dollar as the global reserve currency is cracking, and very quickly, stronger economies are moving fast to facilitate trade in currencies other than the dollar, and in preparation for a time when the US no longer has dominion over global transactions

  7. UK retailers are paying for goods using the Yuan instead of the dollar – see article below.

    http://www.cs.com.cn/english/ei/201201/t20120113_3208217.html

  8. Yes, however the EU countries will do ‘easing’ which is another way of saying that Greece and Italy will keep buying Iran’s oil until they sort out their financial situation which will take a decade. The are plenty of legal ways that the EU countries have of getting around sanctions and no doubt deals will be done with Iran.

    India and Turkey are coming under attack by the UK and US media for not doing what they are told. India is buying Iran’s oil in the Rupee and China is buying it using the RMB which is no doubt annoying both Israel and the US Federal Reserve. Also I can’t see South Korea cutting back on buying oil from Iran and Japan has said that it does not want to cut back on buying oil unless South Korea and China do. Japan is sick of following US orders only to have China take it share of the cake and get goods at lower prices. Turkey is increasing its trade with Iran which is why the French have done their nasty little ‘genocide’ attack on them – like the French have never committed genocide anywhere.

    I believe that

  9. More evidence that by enacting the proposed sanctions and embargo, the US, but mostly Europe is doing nothing but shooting itself in the foot as other countries defiantly barter for energy in in their own currencies ~
    http://www.zerohedge.com/news/india-joins-asian-dollar-exclusion-zone-will-transact-iran-rupees.

  10. ‘ The Fed’s real dual mandate, affirmed every year by every administration’s and Congress’ silence, is obviously not to provide stable prices and full employment, but rather, as the facts now make clear, to bail out and enrich the Rothschild cabal that owns Wall St and the big NY banks and to counterfeit the dollars so the Treasury can pay the military’s bills to fight these interminable proxy wars… ”

    Well said, Dan ~ Obviously the petrodollars are only half way up the food chain ~ we all know who wags the tail of Obamanomics and their heavy Zionist influence.

  11. It is mostly about spheres of influence, about allies and about energy resources. Currency in a minor concern but further down on the agenda.

    Within five years I believe that most of East Asia and Central Asia will be trading using the RMB, Yen, Rupee and Aussie dollar except when they buy oil from US oil allies. There is likely to be a currency deal to swap RMB for Euros within the next five years so that the EU countries can easily trade with Asia without the use of the US dollar. Many financial commentators are saying that the US dollar will be the main reserve currency for a couple of decades but they know they are wrong. By 2020 all of East Asia including Japan, South Korea and Australia will have China as their major trading partner – I don’t see the US dollar being the main currency for trade when this is the situation.

    The UK has just done a deal so that they can sell bonds in the RMB, they are getting invovled in China’s currency.

    The regime changes have all been about spheres of influence. Libya was in China’s sphere of influence. Syria is in Russia’s sphere of influence. The Shanghai Cooperation Organisation is likely to include Pakistan, India, Afghanistan and Iran within five years which will bring them all into Russia and China’s sphere of influence. 50% of the world’s oil and gas will be in this economic grouping. Israel is afraid of having this economic grouping on its door step especially given that it needs to have more wars to steal more land and more countries than those listed could joining the grouping as a way to counter Israel’s invasions. The SCO would be too big to take on in a war. Like the EU, trading groups who also work together for their joint security are not likely to be invaded by external countries. This also reduces weapon sales for each individual country and many would buy military weapons made inside the economic/security grouping rather than the US. So there is an economic factor here as well. The EU is buying many of its military weapons from other EU countries instead of the US.

    The Georgians invaded South Ossettia in 2008 and the Russians, who had a UN mandate to be in the country, defenced the South Ossettian people. Again this invasion was about spheres of influence.

    • The Pan Asian Gold Exchange (PAGE), due to start up mid year, may be a game changer insofar as the COMEX and LBMA, representing the Fed via the bullion banks, may no longer be able to suppress the value of PMs, thereby exposing the extent of the Fed’s trillions and trillions in counterfeiting. (See the article by Sam Chee Kong at Market Oracle for PAGE details.)

      Apparently, an amount equal to at least the entire GDP, about $15 trillion, and possibly twice this amount, has already been transferred from the Fed to the banksters through offshore holdings. No one knows better than these parasitic criminals that the dollar’s going down, so it may be that they intend to take the market down, like by half or more, and subsequently use these counterfeit dollars to buy up our natural and manufacturing resources. Since this same cabal owns this administration and Congress lock, stock, and barrel, they may settle for taking the market down before expropriating the $7 or $8 trillion in private retirement accounts, exchanged for worthless Treasury crap, with it all being done, of course, in the name of saving those accounts. This turns other half of the economic resources of the US over to the cabal one way or the other while those trillions in private retirement accounts enable it to continue paying for these wars. That Congress will not conduct a complete audit of the Fed and of the US gold holdings inarguably proves its complicity. Any thoughts?

      The Fed’s real dual mandate, affirmed every year by every administration’s and Congress’ silence, is obviously not to provide stable prices and full employment, but rather, as the facts now make clear, to bail out and enrich the Rothschild cabal that owns Wall St and the big NY banks and to counterfeit the dollars so the Treasury can pay the military’s bills to fight these interminable proxy wars. Not only does bankrupting the United States, thereby making it incapable of defending its own shores, not matter to this administration and Congress, it appears to be part of the plan of subsuming the US under a NWO in which the usurpation of the US gov by Wall St, big banks, media, and Israel-firsters encompasses all of Western Civilization.

  12. Debunked by whom, Harold ~ who do you think controls the petrodollars ?

    • It’s been debunked by James Petras and others. But anyone paying attention can see for themselves what’s going on here. Petrodollars or no petrodollars, the U.S. is going down. And the U.S. did this to itself. If the U.S. wasn’t making itself hated and trashing its own economy with bankrupting wars and obscenely irresponsible spending…and generally sacrificing itself on the altar of Zionism, the dollar wouldn’t be in trouble right now.

      Of course the problem is that the U.S. is ruled by bloodthirsty, criminally insane, Jewish supremacist madmen, whose goal is world governence; i.e., they seek the end of the concept of national sovereignty. Any independent states will either willingly cede their sovereignty or be destabilized and overthrown or militarily smashed…whatever it takes.

  13. No, it has nothing to do with “petrodollars”. It’s not about “money”. That theory’s been thoroughly debunked. Rather, it’s about the Jewish supremacist agenda of world governance.

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