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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (50361)	4/30/2006 3:19:29 PM
From: regli	Respond to of 116555

Chis, very interesting article. I found this part of particular interest: "... Of course, the effectiveness of the IOB will depend on whether the big international oil trading companies decide to accept deals in euros or not. China, which is emerging as Iran’s largest customer, would have no objection to paying Iran in Euros and thus begin the move from the dollar to the euro. "The weapon of oil in the hands of Iran's regime is more dangerous than any other weapon," said a recently published article in Italy's Panorama newsmagazine. Iran's Deputy Oil Minister Mohammad Javad Assemipour, director of the IOB program, told Panorama that the oil trading centre, due to open in a few months, will turn Iran into a major oil exchange point. "Iran's oil exchange with the region's countries and also some of the East Asia states will take place in Euros instead of U.S. dollars," said Assemipour. Some of the major oil-producing countries such as Venezuela (which has boosted its economic ties with Iran) and a few of the larger oil consuming countries, most notably China and India, have already announced their support for the IOB. There is speculation that the IOB represents Iran's plan to escape any possible future economic sanctions spearheaded by the U.S. However, some postulate that the plan could also endanger the continued existence of Iran's regime. William Clark, an American security expert, predicted that if Iran threatened the hegemony of the U.S. dollar in the international oil market, the White House would immediately order a military attack against it. ..."