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The Oil Bomb

Jul 14, 2008

On May 5, 2008, Iran registered its long-expected Iranian Oil Bourse, accepting the many currencies of other nations without making them pay in US dollars.

When Saddam Hussein tried that, he did not last long. We suddenly found him to be a tyrannical dictator that deserved to be overthrown. Now Iran is doing the same. Europe loves it, because they purchase a lot of oil from Iran and can now do it using euros instead of dollars. China, India, and Pakistan love it, too. But what is good for the world is not very good for America. Hence, it is time for war to "protect American interests."

Here is an excellent article that makes it easy to understand.

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Opinions/Columns/13-Jul-2008/The-oil-bomb

In part, it reads:

"But when on May 5, Isran registered its Euro-denominated IOB [Iranian Oil Bourse] in competition with the dollar-denominationed NYMEX and IPE, and many countries supported it, the dollar took more beating.

"This requires some explaining. Iran did this to break free from the tyranny of the dollar. Russia and Europe welcomed the Iranian oil bourse because 70 percent of Europe's oil is imported from Iran. The two most oil-hungry nations growing hungrier by the day, China and India, also said that they were very interested. Now you see why Iran's president is 'the most dangerous man in the world'? It has nothing to do with the damned nuclear bomb. It has to do with the detonation of the oil bomb that has detonated the dollar bomb.

"For America this is war, literally, because having left the Gold Standard in 1971, it had, de facto, made oil the commodity on which the dollar is based by ensuring that oil is sold mostliy in dollars. (When Saddam said in April 2002 that he was considering selling some Iraqi oil in Euros, he signed his death warrant.) Came the decline in the dollar came the decline in the value (purchasing power) of oil revenues as well as OPEC's dollar-based assets. Oil-exporting countries started thinking in terms of selling some oil in Euros. This would put the dollar even more on the skids. President Bush's first Middle East trip this year, ostensibly a 'peace mission,' was actually to deliver what Mike Whitney calls 'the horse's head' (as in the film, The Godfather).

"Bush went to the trouble of travelling half-way around the world to tell the Saudis and their friends in the Gulf States that they were going tocontinue linking their oil to the dollar or they were going to 'sleep with the fishes'."


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