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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (46476)	2/15/2006 1:39:41 PM
From: sea_biscuit	Read Replies (1) of 116555

OK, then! The evidence piles on... Petrodollars and Nuclear Weapons Proliferation scoop.co.nz Excerpt : "As Newt Gingrich declared on Fox News in late January, the matter is so urgent that the attack must happen within the next few months. “According to Gingrich, Iran not only cannot be trusted with nuclear technology, but also Iranians ‘cannot be trusted with their oil’” (Roberts). The Euro-denominated Tehran Oil Bourse Gingrich’s wording may sound faintly ludicrous. However, it would appear to be a slanting allusion to the fact that the Iranian government has announced plans to open an Iranian Oil Bourse in March 2006. This Bourse will be in direct competition with the New York Mercantile Exchange (NYMEX) and London’s International Petroleum Exchange (IPE)—and unlike them will do business not in U.S. dollars, but in euros. What Gingrich evidently means is that the Iranians cannot be trusted to market their oil and natural gas in a manner that continues to benefit the United States. Peter Phillips and his colleagues in Project Censored explained very clearly in 2003 how the current U.S. dollar-denominated system of oil and gas marketing provides the U.S. with a highly advantageous system of exchange. In 1971, “President Nixon removed U.S. currency from the gold standard”: “Since then, the world’s supply of oil has been traded in U.S. fiat dollars, making the dollar the dominant world reserve currency. Countries must provide the United States with goods and services for dollars—which the United States can freely print. To purchase energy and pay off any IMF debts, countries must hold vast dollar reserves. The world is attached to a currency that one country can produce at will. This means that in addition to controlling world trade, the United States is importing substantial quantities of goods and services for very low relative costs.” (Phillips)

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