Sunday, May 04, 2008

Iran -- New Military Rhetoric

US Rhetoric is increasing over: 1) Iran's military involvement in IRAQ and 2) their Nuclear ambition.

However, the bigger (unspoken) issues are the IRAN-PAKISTAN-INDA GAS PIPELINE and the US Dollar (USD):

America continues to lose clout/controlling power in the region 1) as these countries work to create their own interdependent energy region, and 2) as IRAN eliminates all US dollar holdings and then refuses to accept new dollars in all of its foreign energy transactions.

As stated previously, oil replaced gold in the mid 70's as the peg for the USD and until Iran's recent actions (note: Saddam/IRAQ previously did the same for a short while) all oil transactions around the globe had to be made in USD's. For three decades now, oil has provided the underlying foundation for the World's reserve currency, but the USD foundation is starting to crack...

Dollar: Faltering Foundation of US Economic Strength

Iran’s Oil Bourse Set to Open this Sunday

OPEC May Drop Dollar for Euro

The End of Dollar Hegemony

1 comment:

Sid R Real said...

Yeah, I meant the 'what we're REALLY in Iraq for' is to flex some muscle to intimidate (not necessarily Iran only) over there.

(Re: my comment a few stories down)