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Philbo
May 1st, 2008, 09:02 AM
http://seattletimes.nwsource.com/html/nationworld/2004382712_webiranoil30.html?syndication=rss

Official says Iran quits using US dollar for oil deals

By ALI AKBAR DAREINI (http://search.nwsource.com/search?sort=date&from=ST&source=ST&byline=ALI%20AKBAR%20DAREINI)
The Associated Press


TEHRAN, Iran — Iran, OPEC's second-largest producer, has stopped conducting oil transactions in U.S. dollars, a top Oil Ministry official said Wednesday, a concerted attempt to reduce reliance on Washington at a time of tension over Tehran's nuclear program and suspected involvement in Iraq.

Iran has dramatically reduced dependence on the dollar over the past year in the face of increasing U.S. pressure on its financial system and the fall in the value of the American currency.

Oil is priced in U.S. dollars on the world market, and the currency's depreciation has concerned producers because it has contributed to rising crude prices and eroded the value of their dollar reserves.

"The dollar has totally been removed from Iran's oil transactions," Oil Ministry official Hojjatollah Ghanimifard told state-run television Wednesday. "We have agreed with all of our crude oil customers to do our transactions in non-dollar currencies."

Iranian President Mahmoud Ahmadinejad called the depreciating dollar a "worthless piece of paper" at a rare summit last year in Saudi Arabia attended by state leaders from the Organization of Petroleum Exporting Countries.

Iran put pressure on other OPEC countries at the meeting to price oil in a basket of currencies, but it has not been able to generate support from fellow members — many of whom, including Saudi Arabia, are staunch U.S. allies.

Iran has a tense relationship with the U.S., which has accused Tehran of using its nuclear program as a cover for weapons development and providing support to Shiite militants in Iraq that are killing American troops. Iran has denied the allegations.

The U.S. is sending a second U.S. aircraft carrier to the Persian Gulf, a deployment that Defense Secretary Robert Gates said Tuesday could serve as a "reminder" to Iran. But he said it's not an escalation of force.

Speaking to reporters after meeting with Mexican leaders, Gates said the number of ships there rises and falls continuously. He said he doesn't expect there to be two carriers there for a long time.

Asked if the carrier move went hand in hand with the rising U.S. rhetoric against Iran, Gates said, "I don't see it as an escalation. I think it could be seen, though, as a reminder."

Iranian oil officials have said previously that they were shifting oil sales out of the dollar into other currencies, but Ghanimifard indicated Wednesday that all of Iran's oil transactions were now conducted in either euros or yen.

"In Europe, Iran's oil is sold in euros, but both euros and yen are paid for Iranian crude in Asia," said Ghanimifard.

Iran's central bank has also been reducing its foreign reserves denominated in U.S. dollars, motivated by the falling value of the greenback and U.S. attempts to make it difficult for Iran to conduct dollar transactions.


U.S. banks are prohibited from conducting business directly with Iran, and many European banks have curbed their dealings with the country over the past year under pressure from Washington.

However, the U.S. has been wary of targeting Iran's oil industry directly, apparently worried that such a move could drive up crude prices that are already near record levels.

Iranian analysts say Tehran can withstand U.S. pressure as long as it can continue its oil and gas sales, which constitute most of the country's $80 billion in exports.



Copyright © 2008 The Seattle Times Company

Philbo
May 1st, 2008, 09:04 AM
The cynic in me wonders whether this is the real reason why the US is beating the war drum so heavily against Iran...

Scotso
May 2nd, 2008, 06:21 AM
The cynic in me wonders whether this is the real reason why the US is beating the war drum so heavily against Iran...

That makes absolutely no sense. Why would we invade because they don't use our $ in oil transactions? Who cares.

The dollar is in rebound, and if Iran wants to shoot themselves in the foot, let them. This guy is such a moronic asshole that any action he takes will probably only help the U.S. in the long run.

Last time I checked, Iran's economy wasn't exactly booming. If they want to annoy one of the largest consumers of oil in the world, let them.

Philbo
May 2nd, 2008, 08:54 AM
That makes absolutely no sense. Why would we invade because they don't use our $ in oil transactions? Who cares.

The dollar is in rebound, and if Iran wants to shoot themselves in the foot, let them. This guy is such a moronic asshole that any action he takes will probably only help the U.S. in the long run.

Last time I checked, Iran's economy wasn't exactly booming. If they want to annoy one of the largest consumers of oil in the world, let them.

Well the last time I checked the american dollar was now worth less than the canadian, and the aussie dollar was worth almost as much as the US $$.. One of the only things still giving it strength is the fact that countries need to buy US $$ in order to buy Oil - if any other oil producing nations decide to follow suit, watch the american dollar come down in an almighty crash!!!

Philbo
May 2nd, 2008, 08:54 AM
The end of dollar hegemony is here Scotso - take a look at any number of Ron Paul speeches to understand why....

Infiniti2001
May 2nd, 2008, 01:21 PM
The end of dollar hegemony is here Scotso - take a look at any number of Ron Paul speeches to understand why....


I'll bump this thread when the dollar rebounds :tape:

Philbo
May 2nd, 2008, 01:28 PM
I'll bump this thread when the dollar rebounds :tape:

Define 'rebound'? What level would it need to get back to for it to have recovered? At least worth the canadian dollar? :lol::lol:

Philbo
May 2nd, 2008, 01:43 PM
From the honourable Ron Paul....A speech from 2006 - the man is a visionary...

Most importantly, the dollar/oil relationship has to be maintained to keep the dollar as a preeminent currency. Any attack on this relationship will be forcefully challenged—as it already has been.

In November 2000 Saddam Hussein demanded Euros for his oil. His arrogance was a threat to the dollar; his lack of any military might was never a threat. At the first cabinet meeting with the new administration in 2001, as reported by Treasury Secretary Paul O’Neill, the major topic was how we would get rid of Saddam Hussein-- though there was no evidence whatsoever he posed a threat to us. This deep concern for Saddam Hussein surprised and shocked O’Neill.

It now is common knowledge that the immediate reaction of the administration after 9/11 revolved around how they could connect Saddam Hussein to the attacks, to justify an invasion and overthrow of his government. Even with no evidence of any connection to 9/11, or evidence of weapons of mass destruction, public and congressional support was generated through distortions and flat out misrepresentation of the facts to justify overthrowing Saddam Hussein.

There was no public talk of removing Saddam Hussein because of his attack on the integrity of the dollar as a reserve currency by selling oil in Euros. Many believe this was the real reason for our obsession with Iraq. I doubt it was the only reason, but it may well have played a significant role in our motivation to wage war. Within a very short period after the military victory, all Iraqi oil sales were carried out in dollars. The Euro was abandoned.

In 2001, Venezuela’s ambassador to Russia spoke of Venezuela switching to the Euro for all their oil sales. Within a year there was a coup attempt against Chavez, reportedly with assistance from our CIA.

After these attempts to nudge the Euro toward replacing the dollar as the world’s reserve currency were met with resistance, the sharp fall of the dollar against the Euro was reversed. These events may well have played a significant role in maintaining dollar dominance.

It’s become clear the U.S. administration was sympathetic to those who plotted the overthrow of Chavez, and was embarrassed by its failure. The fact that Chavez was democratically elected had little influence on which side we supported.

Now, a new attempt is being made against the petrodollar system. Iran, another member of the “axis of evil,” has announced her plans to initiate an oil bourse in March of this year. Guess what, the oil sales will be priced Euros, not dollars.

Most Americans forget how our policies have systematically and needlessly antagonized the Iranians over the years. In 1953 the CIA helped overthrow a democratically elected president, Mohammed Mossadeqh, and install the authoritarian Shah, who was friendly to the U.S. The Iranians were still fuming over this when the hostages were seized in 1979. Our alliance with Saddam Hussein in his invasion of Iran in the early 1980s did not help matters, and obviously did not do much for our relationship with Saddam Hussein. The administration announcement in 2001 that Iran was part of the axis of evil didn’t do much to improve the diplomatic relationship between our two countries. Recent threats over nuclear power, while ignoring the fact that they are surrounded by countries with nuclear weapons, doesn’t seem to register with those who continue to provoke Iran. With what most Muslims perceive as our war against Islam, and this recent history, there’s little wonder why Iran might choose to harm America by undermining the dollar. Iran, like Iraq, has zero capability to attack us. But that didn’t stop us from turning Saddam Hussein into a modern day Hitler ready to take over the world. Now Iran, especially since she’s made plans for pricing oil in Euros, has been on the receiving end of a propaganda war not unlike that waged against Iraq before our invasion.

korben
May 2nd, 2008, 03:44 PM
The end of dollar hegemony is here

Yep. It might be soon called AMERO, (http://en.wikipedia.org/wiki/Amero)currency of NAU (http://en.wikipedia.org/wiki/North_American_Union)

Of Iran quitting trade in US$, they already had 70% of trade on other currencies.
Latest should not have huge impact on oil markets. I´m bit clueless of those anyway so might be wrong as well.

Scotso
May 3rd, 2008, 06:08 AM
The end of dollar hegemony is here Scotso - take a look at any number of Ron Paul speeches to understand why....

Well, since the American dollar has already surpassed the Canadian dollar yet again, your posts in this thread make you look like a bit of an idiot.

You can keep cheering against the dollar if you want, but it's going to continue dominating the world for quite a while, despite problems. I agree we're in trouble in the long run if we don't make changes... but right now the US$ is still king.

Philbo
May 5th, 2008, 01:40 PM
Well, since the American dollar has already surpassed the Canadian dollar yet again, your posts in this thread make you look like a bit of an idiot.

You can keep cheering against the dollar if you want, but it's going to continue dominating the world for quite a while, despite problems. I agree we're in trouble in the long run if we don't make changes... but right now the US$ is still king.


Spoken like a true blind patriot. I see you conveniently ignored Ron Paul's well made points - big deal that the dollar has recovered to be on top of the canadian - if thats your only measure of how strong you wish the dollar to be I pity you.


Im not cheering against the dollar at all - I think its a shame that its fallen so far - as does Ron Paul - its an unfair tax on the american people as their savings are eroded as the dollar loses value. Why do you get so defensive about it?

Scotso
May 5th, 2008, 07:59 PM
I am one of Ron Paul's biggest supporters and you call me a blind patriot?

Philbo
May 5th, 2008, 09:38 PM
I am one of Ron Paul's biggest supporters and you call me a blind patriot?

Well that is something Im struggling to understand - you support Ron Paul and my original point is one that RP himself awakened me to, I post a speech by RP which illustrates the point... yet you get defensive and accuse me of 'cheering against the dollar' like i have a desire to see the dollar go down and call me an idiot????... I couldnt figure that out at all...so i put the irational defensiveness down to a sense blind patriotism....