No Proof Found of Iran Arms Program

Starting in 2006, Iran will start up an "oil bourse", or a stock exchange for trading energy, that will be based on the euro, not the US dollar. While this may seem innocuous, it will be a grave risk to continued American global hegemony

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One of the major unstated reasons the United States invaded Iraq was to stop Saddam Hussein from trading oil for euros, which he had begun in 2000. Hussein actually made more money selling oil for euros, as the euro appreciated 17 percent against the dollar between 2000 and 2003. Other countries in the region, particulary Iran and Syria, began public musing about switching from dollars to euros around the same time.

All three countries were subject to a barrage of threats from the United States government, but only Iraq went through with the switch, and it was summarily invaded. One of the US government's first acts in Iraq was to switch oil sales back to dollars.

SOURCE

 

The world hates America because she is good. (relatively) Toqueville

They have for years looked for ways to diminish our power and influence, and some would say that changing currencies is inevitable. Its primary purpose is to wrest world financial control away from America and investing it in the European confederation. These nations hate our dollar but are forced to deal with it.

Nuclear power now.

 

Borrowing, Spending, Counterfeiting


August 22, 2005

Few Americans truly understand how our Federal Reserve system enables Congress to spend far beyond its means, but the cycle of spending and printing money affects all of us. Simply put, the more money our Treasury prints, the less every dollar is worth. Our pure fiat money system, in place since the last vestiges of a gold standard were eliminated in the early 1970s, has reduced the value of your savings by 80%. Disregard the government’s Consumer Price Index, which substantially underreports price inflation. Monetary inflation is true inflation, and we only need to look at the cost of homes, cars, energy, and medical care to recognize that a dollar buys far less today than ever.

Economist Mark Thornton of the Ludwig von Mises Institute lays out a sobering case against the long-term health of the U.S. dollar. He identifies several facts and trends that bode ill for millions of Americans counting on dollar-denominated assets to fund their retirements.

First, federal debt continues to grow exponentially and shows no sign of abating. Americans were shocked at the notion of a $1 trillion federal debt in 1980; just 25 years later the total approaches $8 trillion. The Bush administration and the current Congress have increased spending at rates unseen since the New Deal and Great Society eras, and single-year deficits now exceed $500 billion. There is zero political will in Washington to curb spending, as evidenced by the shameful transportation bill recently passed by Congress.

Second, federal entitlement programs like Social Security and Medicare will not be “fixed” by politicians who are unwilling to made hard choices and admit mistakes. Demographic trends will force tax increases and greater deficit spending to maintain benefits for millions of older Americans who are dependent on the federal government. Faced with uncomfortable financial realities, Congress will seek to avoid the day of reckoning by the most expedient means available-- and the Federal Reserve undoubtedly will accommodate Washington by printing more dollars to pay the bills.

Third, future administrations are unlikely to challenge a foreign policy orthodoxy that views America as the world’s savior. We are hemorrhaging billions of dollars every month in Iraq, and we waste billions more every year through foreign aid and overseas meddling. A foreign policy based on nation-building and the imposition of “democracy” abroad, in direct contravention of our founders’ admonitions, is not economically sustainable. In Korea alone, U.S. taxpayers have spent nearly one trillion in today’s dollars over 55 years. A permanent military presence in Iraq and the wider Middle East will cost enormous amounts of money.

Finally, we face a reordering of the entire world economy. China, Japan, and Asia in general have been happy to hold U.S. debt instruments in recent decades, but they will not prop up our spending habits forever. Foreign central banks are increasingly reluctant to hold more U.S. dollars, understanding that American leaders do not have the discipline to maintain a stable currency. When the rest of the world finally abandons the dollar as the global reserve currency, both Congress and American consumers will find borrowing money a more expensive proposition.

All of these factors make it likely that the U.S. dollar will continue to decline in value, perhaps precipitously, in the coming decade. Will it take an economic depression before the American public finally holds the political class accountable for its reckless borrowing, spending, and counterfeiting?

The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration. The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation. It is this one-two punch-- Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference-- that threatens to impoverish us by further destroying the value of our dollars.

SOURCE

 

Poncho

Several weeks ago I became aware of several Middle Eastern nations and Venezuela corroborating to sell oil in Euros.

According to mainstream media the reason for high oil prices is a refinery that produces 12% of our oil is down. Where it is located or what happened to the refinery was never published to my knowledge.

I feel the "oil bourse" has more to do with the high price of gas than anything else. What is your opinion and what other information can you supply?

 

The weak dollar policy is the US's own fault. It is a sure way to stir a sluggish economy as it increases imports.

Like the Iraq war, someone did not think through all the consequences.

If Iran is succesful and oil begins to be priced in euro the price of fuel in the US will skyrocket. Iran wont need weapons to weaken America.

Greenspan and Bush need to push for a stronger dollar now.

Kudos to Poncho for being one of the few Americans to spell euro properly. No capital "E". If you realy want to impress, use the proper plural, which is also euro, no "s".

 

Appreciate the kudos C4K but I didn't write what I posted therefore I shall pass the kudos on to those who did, Ron Paul and Ryan McGreal.

 

I got the scoop, oil inventories at 198;1 million barrels, or 12 % below last year. US refiners are operating a 93.5% comapared to 95% last year. Still don't understand why gas prices so high, the demand cannot be that much higher than last year.

 

Gas prices are high because people will pay it. You get whatever the market will bear - basic free market economics.

 

Fuel is well over $5.00 a gallon here and "everyone" has two cars and huge engine SUVs are becoming more and more popular.

I predict US driving habits will not change much even at $3.50 a gallon.