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Iran to Open To Reattempt the Opening of Their Bourse

February 26, 2007

I had written on the Iranians opening their own oil bourse last year, only to have too post 3 months later that it was delayed for awhile. Now the Iranians say they are ready. Read on.>>>

Acorrding to Press TV, The Bourse will open on the island of Kish in the Persian Gulf.

Mahmud Salahi said Iran decided to establish a euro-based oil bourse on the Persian Gulf island of Kish, because “there was no such oil trading body in the region.”

“Iran’s oil bourse could help many countries transact petroleum under more favorable conditions,” he said.

For over the past couple of years the experts have been telling of what an Iranian Bourse would mean to the struggling US dollar. Some of the predictions are that it would do more damage to the already floundering dollar on the market.

In 2004 an article written by William Clark, shows the real reason that the U.S. would attack Iran. The reason being that Iran is changing the oil currency from the U.S. Dollar to the Euro. This would hurt the dollar in that it is supported by the faith in that currency. The dollar is a fait currency. Meaning, it has no precious metals backing it and is accepted by faith. The currency is only as strong as the support of that currency.

One of the reasons the market will be welcomed by Europe and others, like China, Russia, and Japan, is they will no longer have to buy American dollars for the oil trade.
E.B.

The Europeans will not have to buy and hold dollars in order to secure their payment for oil, but would instead pay with their own currencies. The adoption of the euro for oil transactions will provide the European currency with a reserve status that will benefit the European at the expense of the Americans.

· The Chinese and the Japanese will be especially eager to adopt the new exchange, because it will allow them to drastically lower their enormous dollar reserves and diversify with Euros, thus protecting themselves against the depreciation of the dollar. One portion of their dollars they will still want to hold onto; a second portion of their dollar holdings they may decide to dump outright; a third portion of their dollars they will decide to use up for future payments without replenishing those dollar holdings, but building up instead their euro reserves.

· The Russians have inherent economic interest in adopting the Euro – the bulk of their trade is with European countries, with oil-exporting countries, with China, and with Japan. Adoption of the Euro will immediately take care of the first two blocs, and will over time facilitate trade with China and Japan. Also, the Russians seemingly detest holding depreciating dollars, for they have recently found a new religion with gold. Russians have also revived their nationalism, and if embracing the Euro will stab the Americans, they will gladly do it and smugly watch the Americans bleed.

The opening of the Bourse will cause a fall of the dollar, but how substantial no one is sure.

If people remember around the beginning of the Iraq invasion, Saddam Hussein had turned all of his oil trading to the Euro, Even those being held by the U.N. under the sanctions. It was less than one month after his country was invaded, they were turned back in to the Dollar.

Last year Syria turned its trading currency over to the Euro. This drew harsh criticism from the United States. For some reason after that switch was made Syria was included a lot more in war like threats against Iran, by the Bush administration.

These two counties are not the only countries looking to drop the dollar. Most of the region is looking to free themselves of the dollar.
Article

Most Middle East countries, including the six oil-producing Persian Gulf monarchies and Jordan, peg their currencies to the dollar. Egypt and Iraq manage floated currencies. The Syrian pound is pegged at 52.2 versus the dollar, according to data compiled by
Bloomberg.
Central bankers from Kuwait, Qatar, the United Arab Emirates, Russia, Sweden, and Finland have this year indicated they aim to diversify their reserves away from the dollar. Central banks held 24.8 percent of reserves in euros in the first quarter, up from 18.1 percent in 1999 when the single currency was formed, International Monetary Fund figures show.

So what this means is that if the support of the U,S. dollar drops we will pay heavy for it at home. The price of a loaf of bread could see an increase of one to two dollars. Oil could go to 150.00 a barrel, which in turn would send everything else up in cost. A lot of this will depend on if the administration is going to attack Iran. All of the indicators point in that direction.

ABA

A few good articles to read on the subject to read so that there is a better understanding are,
1. What Does the USA Dollar Devaluation Mean to You?
2.The Real Reasons Why Iran is the Next Target:

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2 Comments leave one →
  1. Cee permalink
    December 4, 2007 7:13 am

    It makes sense to get away from all your eggs being in the same basket. This country, the US, is in so much debt but makes up not even five percent of world population. I am a citizen of this country but the future of the country is due to KARMA. We aren’t the only people in the world. People in this country will have to learn some humility, period!

    Almighty God is Great!!!

    Like

  2. dazz permalink
    March 15, 2007 10:56 pm

    What if Romania (sp?) destabilizes the E U and Georgia along with Chechnia(sp?) forces Russia to cut her own wrist vertically.How successful will the EURO/PETRO actually be? When something is in motion it tends to stay in motion.

    Like

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