Sovereigns Declare War on US Dollar


Iranian Crisis Evolving into Dollar Hegemony and Western Power Challenge

By Chris Blasi

Profoundly significant news came out of the Middle East on Monday January 23, 2012.  The headline via DEBKAfile* reads:

India to Pay Gold Instead of Dollars for Iranian Oil.  Oil and Gold Markets Stunned

Within the body of the report were gleaned these crucial items:

1.    India has become the first buyer of Iranian oil to agree to settle purchases in gold.

2.    China is expected to follow India’s move.

3.    Approximately 40% of Iran’s total oil exports are consumed by India and China.

4.    Settling oil transactions in gold enables Tehran to circumvent the EU’s upcoming freeze on Iran’s Central Bank assets and the oil embargo announced Monday January 23rd.

5.    Due to the magnitude of the transactions proposed, the price of gold is expected to rise and the Dollar’s value depressed on world markets.

6.    The EU currently accounts for approximately 20% of Iran’s oil exports.

7.    The transactions are to be facilitated via two Indian state owned banks and a Turkish state owned bank.

8.    Financial mechanisms have also been implemented between Iran and Russia for the settlement of oil purchases in currencies other than the US Dollar.

At this point in time it is unnecessary to rehash the dismal state of fiscal and monetary affairs that plague the US.  Excluding the willfully delusional, it is clear to any honest analyst that the gargantuan debts of the US can never be paid in full with dollars retaining current purchasing power.  Further, with the insatiable need to issue exponentially growing volumes of debt to keep the welfare/warfare state hobbling along, who would willingly continue to finance such a debacle?  All that’s left to supports this failing fiat experiment is an entrenched, yet deteriorating, reserve currency system to which there has not been a functioning alternative to date.

It is because of this macroeconomic environment, and the policies that gutted a previously productive goods producing economy, that the only tool left for the US to maintain the status quo is to defend at all costs the Dollar’s reserve currency status….and its foundational component the Petro Dollar.  This is most likely the motive behind the quickening drumbeat to go to war with Iran.  If keeping the world safe from rogue states with nuclear capabilities were the sole motive, than why have North Korea and Pakistan been given a pass?

Unlike the invasion of Iraq, whereby that oil rich nation had no allies come to its aid or at least none with the wherewithal to dare protest in a meaningful way, the Iranian crisis is developing into a far more serious geopolitical happening.  Just as most wars are a smokescreen for behind the scenes power plays between the various ruling class, the events unfolding in the Persian Gulf look to be such in spades.  What will shock the world when the actions reported above are fully digested is the choosing of sides and the clandestine development of alternative financial mechanisms by those nations previously believed not ready or unable to challenge the Western elites.

Following years of speculation as to the fate of the US Dollar and the lengths to which Western bankers would go to defend the system that serves them so well, could today’s headlines be the proverbial ringing bell?  Unfortunately, the actions of most bankrupt and overextended empires is to march its people into a calamitous war.  As with all historically recorded futile endeavors in defending the indefensible (i.e. a debt based paper monetary system), the most likely financial survivor will again be gold.


Add To The Conversation Using Facebook Comments

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

2 Responses

  1. Endgame Resetter says:

    I didn’t expect this from India! But then, bravo to India and thanks God. I was expecting either Russia or China or maybe Japan to initiate this kind of action, so that others can see that this is not anymore about Judeo-Christian and Islamic clash of civilizations. This is more about the Bankrupster trying to expand to the East after sucking dry the West(USD/Euro).
    People of the East, please behold the eastern value. Don’t take this as East and West clash of civilizations either. Please forget our differences my eastern neighbors, and unite in using the gold rather than fiat money. If not we will all be like our western neighbors with their USD/Euro. Yes, they are coming to these east-side of the globe after plundering the west, with their so called investment funds etc which are just only useless fiat money, and yet our leader/politician can’t resist the candy of the fiat money; but we, once and for all must act fast to spread this awakening nationwide, then eastern-wide and later worldwide. Please make our leader to follow suit the Indian leader footstep.
    For our western neighbor, please behold and don’t participate in any form of the Bankrupster hostility in whatever propaganda targeted to the other races/nations/religions etc. The awakening surely will later reach our western neighbors.
    Hopefully we all will be destined to celebrate this awakening later on.

  2. When you can’t get any new investors to buy U.S. government securities, such as treasury bonds, bills and notes to pay off the investors at the top, the gigantic Ponzii Pyramid Scam collapses. All economic systems that are based on fiat currency eventually end up in hyper-inflation. Iflation is the gradual bankruptsy of the government, the largest debtor of all, so that they can pay you in money far less than that which they borrowed from you. It’s a confidence game. You can fool some of the people some of the time, but you cannot fool all of the people all of the time.

Leave a Reply

© 2012 Pakalert Press. All rights reserved.
demo slot
jebol togel
Slot Gacor
obat penggugur kandungan
obat aborsi
Slot Thailand
akun pro malaysia
slot gacor 777