Political motivation behind energy crisis
http://english.people.com.cn/90001/90780/
Playing fair acts as core of WTO talks
http://english.people.com.cn/90001/90780/91421
Stop War on Iran Campaign: How many wrong wars are the American people supposed to fight?
http://www.globalresearch.ca/index.php?context=va&aid=9663
War Party in a Bind: After Nuclear Talks in Geneva, Iran Will Likely Agree
Originally posted by xtreyier:
Fine.You are entitled to your beliefs. Go on spouting:the Iranian leadership has a right to oppose Opec increasing oil production output to ease international inflation,
the right of Iranian leadership to be belligerant in producing nuclear weapons,
the right of Iranian leadership to threaten the world to cut oil supplies, like a terrorist making demands which the world must never give in to such threats,
the right of Iranian leadership to wipe out and murder every Israeli man, woman and child,
the right of Iranian leadership to use its funds to support terrorism,
the right of Iranian leadership to treat the world's humanity with contempt because they are infidels,
the right of the Iranian leadership to starve the human race into submission to their theology and wiles,
Go on and live in your delusional world, where the suffering middle classes and the poor of our human race of 6 billion people are nothing more than an imagination in your rose tinted glassed eyes.
Go on and spout that the iranian citizens of 70million people are made to suffer because the rest of the world wants cheap oil, when you yourself don't even know what level of 'cheap oil' should be so they themselves don't starve with high food prices, and what the iranian leaderships does with its oil wealth, which belongs to the iranian citizens and should be used as such but was not!
If you are foolish to be in denial to support Iranian's leadership atrocities, others will not be in such denial. Support the Iranian leadership all you want! and don't complain of high oil prices or high electricity bills then! Go live in your ivory tower and enjoy your luxury, the poor and the middle class find their own way!
I think most of us here know who is the one living in a delusional world as you put words in my mouth.
While you can shoot your mouth off about waging war on Iran leadership, people are starving in Africa...
Stop living in your delusional world that only Iran is causing the crisis....it takes two hands to clap.
Iranian citizens will suffer if an invasion happened on their homeland, that's a fact that you deny.
Look at Iraq, did the Iraqis suffer during the Illegal invasion by US of A? YES!!!
Lol, fyi I'm a middle class citizen living on this little sunny island and the last thing I want is a stupid war started by a stupid person who can't wrestle his way out of a paperbag to get my homeland involved!!!
And one of the many possible solution to this oil crisis, Go Green:
1) use solar energy
2) Use biofuel
When these replace oil, we will have solve any crisis involving oil.
You do have to understand when the non oil producing countries replace 30% - 40% fosile fuel with alternative energy. Oil producing countries that depend upon Oil revenue will be using their military against the world as their govt and economies will face collapse.
another crisis.
Originally posted by Arapahoe:
You do have to understand when the non oil producing countries replace 30% - 40% fosile fuel with alternative energy. Oil producing countries that depend upon Oil revenue will be using their military against the world as their govt and economies will face collapse.
another crisis.
I don't think nations like Canada or Saudi Arabia or Iran or Russia or Norway or Malaysia will use their military against the world (we are talking about them aganist all the other nations...ridiculous) nor will their goverments and economies face collaspe unless their goverments are stupid enough to let their economies fall due to decrease revenue from oil exports.
VIENNA, Austria (AP) — Iran signaled Thursday that it will no longer cooperate with U.N. experts probing for signs of clandestine nuclear weapons work, confirming the investigation is at a dead end a year after it began.
I humbly and sincerly apologise to the doves here. No one loves war. It means death, either to ourselves or others. The decision to go to war is no light matter. I too, love peace. I enjoy the smell and look of a new sunrise, and the gathering of twilight to bring forth rest.
Despite the flaws and all, this is a beautiful world we live in, made better with our families and friends around us. There is no need for more violence to threaten the splendour of our world.
During my NS military training at live firing ranges, I had often wondered if the target board mannequinn that i am firing at, had been a human figure, would i be so quick on the trigger, to end a life?
But make no mistake! If I had the honour to capture the Iranian supreme leader himself and he resists arrest by pulling a gun out from his drawer to fire at me and my fellow soldiers, i will not hesistant a second to pump lead from my entire clip into his worthless soul! His demise is fully justified. He and others in his misguided leadership had threatened the world.
The iranian leadership had secretly tried to manufacture nuclear weapons. They were threatened by no one, not even Israel. They had no reason to go nuclear except to generate electricity, not weapons. Yet they went ahead for weapons, as early as 2004.
When discovered, they hid their evidences and did not allow nuclear inspectors into the country till today. They fought back in the only way they know how - by manipulating the price of oil needed by the west and the world to make them suffer into allowing these madmen to obtain nuclear weapons.
Iran is not Israel or Britan whom are contend just to keep nuclear arms as a deterrent. Iran had continuily threaten its neighbours - Israel to wipe them out, and Saudi Arabia - a thorn on its side both in religion and oil output, invaded Iraq before, etc. Iran had financed terrorists organisations around the world. There are more insane policies by the Iranian leadership, even when they don't own nukes yet. Thus no country can be safe with a nuclear armed Iran, at a time when the rest of world is actively stopping the awesome proliferation of nukes into our beautiful world.
As much as i am against a nuclear armed Iran, my detest of the leadership stems from its' willingness to manipulate the price of oil through its brokers in oil stocks, to obtain its' wants, making everyone else in the world suffer.
I have no quarrel with the iranian citizens, even though in their silence to the suffering of billions in the world, doing nothing to change or reform their leadership. When war breaks out, they will be given ample time to hide or flee till their leadership is eradicated, and its treasury redistributed back to each and everyone of them. Diplomacy and every policy had failed and the last option must be used. WAR!
Do not mistake us as meek or docile. We are a resiliant people, prefer peace than to war. But when pushed to a corner, such as now with high prices in everything, caused by the Iranian leadership, I will seek that my elected representatives ask for war, along with other nations that are languishing over an unnecessary price rise caused by self centred and mad Iranian leadership!
Put on your pristine white linen of peacefulness and let not a blood stain its purity, and let me take the dirt, pain, responsibility and death for a war i propose and fight on your behalf, even as you spout peace but can offer no credible solution to the crises. My blood and others' likeminded will have to be spilt to stifle the cries from billions around the world suffering now. Better dead than to grovel on our knees and plead for scraps from the Iranian leadership or suffer from nuclear winter by these madmen.
More and more evidence showing that USA backed 1979 Iranian revolution:
Iran's Islamic Revolution Had Western Blessing
...While Khomeini was in exile in Neauphle-le-Chateau near Paris and leading the revolution, he was asked by the current world powers to meet and to have a dialogue. He raised some demands, including the shah's removal from Iran and help in avoiding a coup d'état by the Iranian Army. On the other side of the table, the western powers had certain demands too. They were worried about the Soviet Union's empowerment and penetration and a disruption in Iran's oil supply to the west. Khomeini gave the necessary guarantees. These meetings and contacts were taking place in January of 1979, just a few days before the Islamic Revolution in February 1979...
http://www.antiwar.com/news/?articleid=13212
Why and How the Shah of Iran was Overthrown
...After the catastrophe, each of the participants at Guadeloupe naturally attempted to shift the blame on to each of the others. According to the French president, it was Jimmy Carter, who was the first to affirm: "the Shah cannot stay - the Iranian people don't want him any more - we have nothing to worry about".
One day, the archives will probably reveal the whole truth of this episode...
http://www.studien-von-zeitfragen.net/Eurasien/
What Really Happed to the Shah of Iran
...Carter's security adviser, Zbigniew Brzezinski, and secretary of state, Cyrus Vance, implemented their 'Arc of Crisis' policy, spreading the instability of the Iranian revolution throughout the perimeter around the Soviet Union. Throughout the Islamic perimeter from Pakistan to Iran, U.S. initiatives created instability or worse."
Originally posted by RoyFang:
I don't think nations like Canada or Saudi Arabia or Iran or Russia or Norway or Malaysia will use their military against the world (we are talking about them aganist all the other nations...ridiculous) nor will their goverments and economies face collaspe unless their goverments are stupid enough to let their economies fall due to decrease revenue from oil exports.
Most Arab countries have yet to create substitutes economy outside Oil. These are the countries that you have to contemp with IF the replacement threaten their economies.
Just wondering how people can go to arms lenght to save or protect an animal but think nothing of proposing for war.....which needless to say results in women and children being the main victims...Sigh......
ya...go to war with iran and my energy stocks will rise further....hurray!
Originally posted by oxford mushroom:ya...go to war with iran and my energy stocks will rise further....hurray!
Energy stocks had been rising higher even without any war. Therefore, aftermuch deliberation and considerations based on facts, reason and logic, it is better to war on the Iranian leadership, the main culprit whom had been pushing up prices through the use of their multibillion reserves in buying stocks, and preventing OPEC from increasing output.
The world had suffered enough. Oil price rise increases everything else. Diplomacy had failed for 3 years. WE MUST STOP IRAN NOW! How long must the world humanity be made to suffer because of Iranian leadership desire to aquire nuclear weapons?
Who is going to stop?
Originally posted by Poh Ah Pak:Who is going to stop?
You and me. And any others who, like me, sick of paying more of our hardearned money for bus transportation and electricity to illuminate the night for rest after a hardday's work. As well as paying more for the kopi-o, bread. And more,etc,etc...
THE IRANIAN LEADERSHIP MUST PAY FOR OUR SUFFERING!!!!
okok.. i gif permission liao..
saturday u will see the planes flying liao..
You and me.
Not me.
My fight is here in Singapore against PAP regime.
You want to fight Iran for whatever reason, you can go ahead.
My advice to you is that it is a foolish move.
xtreyier, if you are serious about fighting Iran, you can contact USA embassy and volunteer as a guerrilla fighter against Iran.
I think CIA will train you, arm you and then send you into Iran to carry out guerrilla operations.
This is a great guide to guerrilla warfare, written by Mao Zedong, very insightful:
ON PROTRACTED WAR
http://www.marxists.org/reference
A Nightmare for the US: Why the Dollar Bubble is about to Burst
The Voice http://www.scottishsocialistvoice.net/back%20issues%2006/issue%20264.htm (issue 264 - 11th May 2006 page 8) ran an article beginning, 'Iran has really gone and done it now. No, they haven't sent their first nuclear sub in to the Persian Gulf. They are about to launch something much more deadly -- next week the Iran Bourse will open to trade oil, not in dollars but in Euros' This apparently insignificant event has consequences far greater for the US people, indeed all for us all, than is imaginable.
Currently almost all oil buying and selling is in US-dollars through exchanges in London and New York. It is not accidental they are both US-owned.
The Wall Street crash in 1929 sparked off global depression and World War II. During that war the US supplied provisions and munitions to all its allies, refusing currency and demanding gold payments in exchange.
By 1945, 80% of the world's gold was sitting in US vaults. The dollar became the one undisputed global reserve currency -- it was treated world-wide as `safer than gold'. The Bretton Woods agreement was established.
The US took full advantage over the next decades and printed dollars like there was no tomorrow. The US exported many mountains of dollars, paying for ever-increasing amounts of commodities, tax cuts for the rich, many wars abroad, mercenaries, spies and politicians the world over. You see, this did not affect inflation at home! The US got it all for free! Well, maybe for a forest or two.
Over subsequent decades the world's vaults bulged at the seams and more and more vaults were built, just for US dollars. Each year, the US spends many more dollars abroad that at home. Analysts pretty much agree that outside the US, of the savings, or reserves, of all other countries, in gold and all currencies -- that a massive 66% of this total wealth is in US dollars!
In 1971 several countries simultaneously tried to sell a small portion of their dollars to the US for gold. Krassimir Petrov, (Ph. D. In Economics at Ohio University) recently wrote http://news.goldseek.com/GoldSeek/1137510262.php , 'The US Government defaulted on its payment on August 15, 1971. While popular spin told the story of `severing the link between the dollar and gold', in reality the denial to pay back in gold was an act of bankruptcy by the US Government.' The 1945 Bretton Woods agreement was unilaterally smashed.
The dollar and US economy were on a precipice resembling Germany in 1929. The US now had to find a way for the rest of the world to believe and have faith in the paper dollar. The solution was in oil, in the petrodollar. The US viciously bullied first Saudi Arabia and then OPEC to sell oil for dollars only -- it worked, the dollar was saved. Now countries had to keep dollars to buy much needed oil. And the US could buy oil all over the world, free of charge. What a Houdini for the US! Oil replaced gold as the new foundation to stop the paper dollar sinking.
Since 1971, the US printed even more mountains of dollars to spend abroad. The trade deficit grew and grew. The US sucked-in much of the world's products for next to nothing. More vaults were built.
Expert, Coilin Nunan, wrote in 2003 (http://www.feasta.org/documents/review2/nunan.htm) , 'The dollar is the de facto world reserve currency: the US currency accounts for approximately two thirds of all official exchange reserves. More than four-fifths of all foreign exchange transactions and half of all world exports are denominated in dollars. In addition, all IMF loans are denominated in dollars.'
Dr Bulent Gukay of Keele University recently wrote, 'This system of the US dollar acting as global reserve currency in oil trade keeps the demand for the dollar `artificially' high. This enables the US to carry out printing dollars at the price of next to nothing to fund increased military spending and consumer spending on imports. There is no theoretical limit to the amount of dollars that can be printed. As long as the US has no serious challengers, and the other states have confidence in the US dollar, the system functions.'
Until recently, the US-dollar has been safe. However, since 1990 Western Europe has been busy growing, swallowing up central and Eastern Europe. French and German bosses were jealous of the US ability to buy goods and people the world over for nothing. They wanted a slice of the free cake too. Further, they now had the power and established the Euro in late 1999 against massive US-inspired opposition across Europe, especially from Britain - paid for in dollars of course. But the Euro succeeded.
Only months after the euro-launch, Saddam's Iraq announced it was switching from selling oil in dollars only, to euros only -- breaking the OPEC agreement. Iran, Russia, Venezuela, Libya, all began talking openly of switching too -- were the floodgates about to be opened?
Then aeroplanes flew into the twin-towers in September 2001. Was this another Houdini chance to save the US (petro) dollar and the biggest financial/economic crash in history? War preparations began in the US. But first war-fever had to be created -- and truth was the first casualty. Other oil producing countries watched-on. In 2000 Iraq began selling oil in euros. In 2002, Iraq changed all their petro-dollars in their vaults into euros. A few months later, the US began their invasion of Iraq.
The whole world was watching: very few aware that the US was engaging in the first oil currency, or petrodollar war. After the invasion of Iraq in March 2003, remember, the US secured oil areas first. Their first sales in August were, of course, in dollars, again. The only government building in Baghdad not bombed was the Oil Ministry! It does not matter how many people are murdered -- for the US, the petrodollar must be saved as the only way to buy and sell oil -- otherwise the US economy will crash, and much more besides.
In early 2003, Hugo Chavez, President of Venezuela talked openly of selling half of its oil in euros (the other half is bought by the US). On 12 April 2003, the US-supported business leaders and some generals in Venezuela kidnapped Chavez and attempted a coup. The masses rose against this and the Army followed suit. The coup failed. This was bad for the US.
In November 2000 the euro/dollar was at $0.82 dollars, its lowest ever, and still diving, but when Iraq started selling oil in euros, the euro dive was halted. In April 2002 senior OPEC reps talked about trading in euros and the euro shot up. In June 2003 the US occupiers of Iraq switched trading back to dollars and the euro fell against the dollar again. In August 2003 Iran starts to sell oil in euros to some European countries and the euro rises sharply. In the winter of 2003-4 Russian and OPEC politicians talked seriously of switching oil/gas sales to the euro and the euro rose. In February 2004 OPEC met and made no decision to turn to the euro -- and yes, the euro fell against the dollar. In June 2004 Iran announced it would build an oil bourse to rival London and New York, and again, the euro rose. The euro stands at $1.27 and has been climbing of late.
But matters this month became far, far worse for the US dollar. On 5th May Iran registered its own Oil Bourse, the IOB. Not only are they now selling oil in euros from abroad -- they have established an actual Oil Bourse, a global trading centre for all countries to buy and sell their oil!
In Chavez's recent visit to London; he talked openly about supporting the Iranian Oil Bourse, and selling oil in euros. When asked in London about the new arms embargo imposed by the US against Venezuela, Chavez prophetically dismissed the US as 'a paper tiger'.
Currently, almost all the world's oil is sold on either the NYMEX, New York Mercantile Exchange, or the IPE, London's International Petroleum Exchange. Both are owned by US citizens and both sell and buy only in US dollars. The success of the Iran Oil Bourse makes sense to Europe, which buys 70% of Iran's oil. It makes sense for Russia, which sells 66% of its oil to Europe . But worse for the US, China and India have already stated they are very interested in the new Iranian Oil Bourse.
If there is a tactical-nuclear strike on - deja-vu - `weapons of mass destruction' in Iran, who would bet against a certain Oil Exchange and more, being bombed too?
And worse for Bush. It makes sense for Europe, China, India and Japan-- as well as all the other countries mentioned above -- to buy and sell oil in Euros. They will certainly have to stock-up on euros now, and they will sell dollars to do so. The euro is far more stable than the debt-ridden dollar. The IMF has recently highlighted US economic difficulties and the trade deficit strangling the US-- there is no way out.
The problem for so many countries now is how to get rid of their vaults full of dollars, before it crashes? And the US has bullied so many countries for so many decades around the world, that many will see a chance to kick the bully back. The US cannot accept even 5% of the world's dollars -- it would crash the US economy dragging much of the world with it, especially Britain.
To survive, as the Scottish Socialist Voice article stated, 'the US, needs to generate a trade surplus to get out of this one. Problem is it can't.' This is spot on. To do that they must force US workers into near slavery, to get paid less than Chinese or Indian workers. We all know that this will not happen.
What will happen in the US? Chaos for sure. Maybe a workers revolution, but looking at the situation as it is now, it is more likely to be a re-run of Germany post-1929, and some form of extreme-right mass movement will emerge.
Does Europe and China/Asia have the economic independence and strength to stop the whole world's economies collapsing with the US? Their vaults are full to the brim with dollars.
The US has to find a way to pay for its dollar-imperialist exploitation of the world since 1945. Somehow, eventually, it has to account for every dollar in every vault in the world.
Bombing Iran could backfire tremendously. It would bring Iran openly into the war in Iraq, behind the Shiite majority. The US cannot cope even now with the much smaller Iraqi insurgency. Perhaps the US will feed into the Sunni v Shiite conflict and turn it into a wider Middle-East civil-war. However, this is so dangerous for global oil supplies. Further, they know that this would be temporary, as some country somewhere else, will establish a euro-oil-exchange, perhaps in Brussels.
There is one `solution' -- scrap the dollar and print a whole new currency for the US. This will destroy 66% of the rest of the world's savings/reserves in one swoop. Imagine the implications? Such are the desperate things now swimming around heads in the White House, Wall Street and Pentagon.
Another is to do as Germany did, just before invading Poland in 1938. The Nazis filmed a mock Polish Army attack on Germany, to win hearts and minds at home. But again, this is a finger in the dam. So, how is the US going to escape this time? The only global arena of total superiority left is military. Who knows what horrors lie ahead. A new world war is one tool by which the US could discipline its `allies' into keeping the dollar in their vaults.
The task of socialists today is to explain to as may as possible, especially our class, that the coming crisis belongs purely to capitalism and (dollar) imperialism. Not people of other cultures, not Islam, not the axis of evil or their so-called WMDs. Their system alone is to blame.
The new Iranian Oil Bourse, the IOB, is situated in a new building on the free-trade-zone island of Kish, in the Persian Gulf. Its computers and software are all set to go. The IOB was supposed to be up and running last March, but many pressures forced a postponement. Where the pressure came from is obvious. It was internationally registered on 5th May and supposed to open mid-May, but its opening was put off, some saying the oil-mafia was involved, along with much international pressure. Just google `pertroeuro' http://www.google.com/search?hl=en&q=petroeuro&btnG=Search , and the story lies before you.
From now on, anyone in the know will wake up every morning and, even before coffee, will check out the latest exchange rate between the euro and dollar.
The story explains itself.
Henry Paulson has lost Control over US Finance, Economy
By F. William Engdahl, 3 August 2008
When Henry Paulson agreed to leave his job as chairman of the powerful Wall Street investment bank, Goldman Sachs to go to Washington as Treasury Secretary in 2006 he demanded extraordinary powers as de facto economic czar. He got it. Paulson is also head of the President’s Working Group on Financial Markets -- the secretary of the treasury and the chairmen of the Federal Reserve Board, the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The Working Group is the financial world's equivalent of the Pentagon war room. Paulson, not Fed chairman Bernanke, is the person running the Administration’s crisis management.
And his recent actions indicate he has lost control as the snowballing problems from the semi -government mortgage companies Freddie Mac and Fannie Mae to the collapse of the multi-trillion dollar market in Asset Backed Securities (ABS) to the real economy are compounding into the worst crisis since the 1930’s Great Depression...
http://www.engdahl.oilgeopolitics.net/Financial_Tsunami/Paulson/paulson.html
Originally posted by xtreyier:
You and me. And any others who, like me, sick of paying more of our hardearned money for bus transportation and electricity to illuminate the night for rest after a hardday's work. As well as paying more for the kopi-o, bread. And more,etc,etc...THE IRANIAN LEADERSHIP MUST PAY FOR OUR SUFFERING!!!!
Originally posted by Poh Ah Pak:
Is that the reason that Iran needs nuclear arms? Iranian soldiers couldn't shoot straight!
I think Iran wants nuclear arms is to deter Israeli or USA nuclear strike and to strengthen its military power in the region.
Originally posted by Gosu.:A Nightmare for the US: Why the Dollar Bubble is about to Burst
The Voice http://www.scottishsocialistvoice.net/back%20issues%2006/issue%20264.htm (issue 264 - 11th May 2006 page 8) ran an article beginning, 'Iran has really gone and done it now. No, they haven't sent their first nuclear sub in to the Persian Gulf. They are about to launch something much more deadly -- next week the Iran Bourse will open to trade oil, not in dollars but in Euros' This apparently insignificant event has consequences far greater for the US people, indeed all for us all, than is imaginable.
Currently almost all oil buying and selling is in US-dollars through exchanges in London and New York. It is not accidental they are both US-owned.
The Wall Street crash in 1929 sparked off global depression and World War II. During that war the US supplied provisions and munitions to all its allies, refusing currency and demanding gold payments in exchange.
By 1945, 80% of the world's gold was sitting in US vaults. The dollar became the one undisputed global reserve currency -- it was treated world-wide as `safer than gold'. The Bretton Woods agreement was established.
The US took full advantage over the next decades and printed dollars like there was no tomorrow. The US exported many mountains of dollars, paying for ever-increasing amounts of commodities, tax cuts for the rich, many wars abroad, mercenaries, spies and politicians the world over. You see, this did not affect inflation at home! The US got it all for free! Well, maybe for a forest or two.
Over subsequent decades the world's vaults bulged at the seams and more and more vaults were built, just for US dollars. Each year, the US spends many more dollars abroad that at home. Analysts pretty much agree that outside the US, of the savings, or reserves, of all other countries, in gold and all currencies -- that a massive 66% of this total wealth is in US dollars!
In 1971 several countries simultaneously tried to sell a small portion of their dollars to the US for gold. Krassimir Petrov, (Ph. D. In Economics at Ohio University) recently wrote http://news.goldseek.com/GoldSeek/1137510262.php , 'The US Government defaulted on its payment on August 15, 1971. While popular spin told the story of `severing the link between the dollar and gold', in reality the denial to pay back in gold was an act of bankruptcy by the US Government.' The 1945 Bretton Woods agreement was unilaterally smashed.
The dollar and US economy were on a precipice resembling Germany in 1929. The US now had to find a way for the rest of the world to believe and have faith in the paper dollar. The solution was in oil, in the petrodollar. The US viciously bullied first Saudi Arabia and then OPEC to sell oil for dollars only -- it worked, the dollar was saved. Now countries had to keep dollars to buy much needed oil. And the US could buy oil all over the world, free of charge. What a Houdini for the US! Oil replaced gold as the new foundation to stop the paper dollar sinking.
Since 1971, the US printed even more mountains of dollars to spend abroad. The trade deficit grew and grew. The US sucked-in much of the world's products for next to nothing. More vaults were built.
Expert, Coilin Nunan, wrote in 2003 (http://www.feasta.org/documents/review2/nunan.htm) , 'The dollar is the de facto world reserve currency: the US currency accounts for approximately two thirds of all official exchange reserves. More than four-fifths of all foreign exchange transactions and half of all world exports are denominated in dollars. In addition, all IMF loans are denominated in dollars.'
Dr Bulent Gukay of Keele University recently wrote, 'This system of the US dollar acting as global reserve currency in oil trade keeps the demand for the dollar `artificially' high. This enables the US to carry out printing dollars at the price of next to nothing to fund increased military spending and consumer spending on imports. There is no theoretical limit to the amount of dollars that can be printed. As long as the US has no serious challengers, and the other states have confidence in the US dollar, the system functions.'
Until recently, the US-dollar has been safe. However, since 1990 Western Europe has been busy growing, swallowing up central and Eastern Europe. French and German bosses were jealous of the US ability to buy goods and people the world over for nothing. They wanted a slice of the free cake too. Further, they now had the power and established the Euro in late 1999 against massive US-inspired opposition across Europe, especially from Britain - paid for in dollars of course. But the Euro succeeded.
Only months after the euro-launch, Saddam's Iraq announced it was switching from selling oil in dollars only, to euros only -- breaking the OPEC agreement. Iran, Russia, Venezuela, Libya, all began talking openly of switching too -- were the floodgates about to be opened?
Then aeroplanes flew into the twin-towers in September 2001. Was this another Houdini chance to save the US (petro) dollar and the biggest financial/economic crash in history? War preparations began in the US. But first war-fever had to be created -- and truth was the first casualty. Other oil producing countries watched-on. In 2000 Iraq began selling oil in euros. In 2002, Iraq changed all their petro-dollars in their vaults into euros. A few months later, the US began their invasion of Iraq.
The whole world was watching: very few aware that the US was engaging in the first oil currency, or petrodollar war. After the invasion of Iraq in March 2003, remember, the US secured oil areas first. Their first sales in August were, of course, in dollars, again. The only government building in Baghdad not bombed was the Oil Ministry! It does not matter how many people are murdered -- for the US, the petrodollar must be saved as the only way to buy and sell oil -- otherwise the US economy will crash, and much more besides.
In early 2003, Hugo Chavez, President of Venezuela talked openly of selling half of its oil in euros (the other half is bought by the US). On 12 April 2003, the US-supported business leaders and some generals in Venezuela kidnapped Chavez and attempted a coup. The masses rose against this and the Army followed suit. The coup failed. This was bad for the US.
In November 2000 the euro/dollar was at $0.82 dollars, its lowest ever, and still diving, but when Iraq started selling oil in euros, the euro dive was halted. In April 2002 senior OPEC reps talked about trading in euros and the euro shot up. In June 2003 the US occupiers of Iraq switched trading back to dollars and the euro fell against the dollar again. In August 2003 Iran starts to sell oil in euros to some European countries and the euro rises sharply. In the winter of 2003-4 Russian and OPEC politicians talked seriously of switching oil/gas sales to the euro and the euro rose. In February 2004 OPEC met and made no decision to turn to the euro -- and yes, the euro fell against the dollar. In June 2004 Iran announced it would build an oil bourse to rival London and New York, and again, the euro rose. The euro stands at $1.27 and has been climbing of late.
But matters this month became far, far worse for the US dollar. On 5th May Iran registered its own Oil Bourse, the IOB. Not only are they now selling oil in euros from abroad -- they have established an actual Oil Bourse, a global trading centre for all countries to buy and sell their oil!
In Chavez's recent visit to London; he talked openly about supporting the Iranian Oil Bourse, and selling oil in euros. When asked in London about the new arms embargo imposed by the US against Venezuela, Chavez prophetically dismissed the US as 'a paper tiger'.
Currently, almost all the world's oil is sold on either the NYMEX, New York Mercantile Exchange, or the IPE, London's International Petroleum Exchange. Both are owned by US citizens and both sell and buy only in US dollars. The success of the Iran Oil Bourse makes sense to Europe, which buys 70% of Iran's oil. It makes sense for Russia, which sells 66% of its oil to Europe . But worse for the US, China and India have already stated they are very interested in the new Iranian Oil Bourse.
If there is a tactical-nuclear strike on - deja-vu - `weapons of mass destruction' in Iran, who would bet against a certain Oil Exchange and more, being bombed too?
And worse for Bush. It makes sense for Europe, China, India and Japan-- as well as all the other countries mentioned above -- to buy and sell oil in Euros. They will certainly have to stock-up on euros now, and they will sell dollars to do so. The euro is far more stable than the debt-ridden dollar. The IMF has recently highlighted US economic difficulties and the trade deficit strangling the US-- there is no way out.
The problem for so many countries now is how to get rid of their vaults full of dollars, before it crashes? And the US has bullied so many countries for so many decades around the world, that many will see a chance to kick the bully back. The US cannot accept even 5% of the world's dollars -- it would crash the US economy dragging much of the world with it, especially Britain.
To survive, as the Scottish Socialist Voice article stated, 'the US, needs to generate a trade surplus to get out of this one. Problem is it can't.' This is spot on. To do that they must force US workers into near slavery, to get paid less than Chinese or Indian workers. We all know that this will not happen.
What will happen in the US? Chaos for sure. Maybe a workers revolution, but looking at the situation as it is now, it is more likely to be a re-run of Germany post-1929, and some form of extreme-right mass movement will emerge.
Does Europe and China/Asia have the economic independence and strength to stop the whole world's economies collapsing with the US? Their vaults are full to the brim with dollars.
The US has to find a way to pay for its dollar-imperialist exploitation of the world since 1945. Somehow, eventually, it has to account for every dollar in every vault in the world.
Bombing Iran could backfire tremendously. It would bring Iran openly into the war in Iraq, behind the Shiite majority. The US cannot cope even now with the much smaller Iraqi insurgency. Perhaps the US will feed into the Sunni v Shiite conflict and turn it into a wider Middle-East civil-war. However, this is so dangerous for global oil supplies. Further, they know that this would be temporary, as some country somewhere else, will establish a euro-oil-exchange, perhaps in Brussels.
There is one `solution' -- scrap the dollar and print a whole new currency for the US. This will destroy 66% of the rest of the world's savings/reserves in one swoop. Imagine the implications? Such are the desperate things now swimming around heads in the White House, Wall Street and Pentagon.
Another is to do as Germany did, just before invading Poland in 1938. The Nazis filmed a mock Polish Army attack on Germany, to win hearts and minds at home. But again, this is a finger in the dam. So, how is the US going to escape this time? The only global arena of total superiority left is military. Who knows what horrors lie ahead. A new world war is one tool by which the US could discipline its `allies' into keeping the dollar in their vaults.
The task of socialists today is to explain to as may as possible, especially our class, that the coming crisis belongs purely to capitalism and (dollar) imperialism. Not people of other cultures, not Islam, not the axis of evil or their so-called WMDs. Their system alone is to blame.
The new Iranian Oil Bourse, the IOB, is situated in a new building on the free-trade-zone island of Kish, in the Persian Gulf. Its computers and software are all set to go. The IOB was supposed to be up and running last March, but many pressures forced a postponement. Where the pressure came from is obvious. It was internationally registered on 5th May and supposed to open mid-May, but its opening was put off, some saying the oil-mafia was involved, along with much international pressure. Just google `pertroeuro' http://www.google.com/search?hl=en&q=petroeuro&btnG=Search , and the story lies before you.
From now on, anyone in the know will wake up every morning and, even before coffee, will check out the latest exchange rate between the euro and dollar.
The story explains itself.
What makes one accept a piece of paper in return for goods or services rendered?
While it is impossible to lug bags of gold to buy TV or computers, most manufacturers and retailers would accept that piece of paper in return for their efforts. It is all about belief and confidence. Confidence that, that piece of paper is backed by the value it is printed with, based on the issuer's deposits of wealth.
And wealth is measured in either gold or earnings.
The US economy
In our world, USA is the strongest and richest country in the world since the 1900s. They have natural resources and coupled with an intelligent, hardworking and resourceful people situated together united within a continent, with states/provinces of several time zones.
In the late 1940s, it was this continent and people whom had provided the resources for the reconstruction of the world, ravaged by war started from a racist madman. It was also this nation that upheld freedom, equality and a need to back up the value of the paper printed in exchange for goods and services by gold.
It served a purpose well till the late 1970s. Democracy is nothing more a kitchen filled with cooks, each with its own opinions on how the porridge should be cooked, resulted in frightening opinionated brew. Thus, the agreement to back currencies by gold was dissolved, but instead used a floating rate mechanism.
If US had printed 'banana notes' as alledged, they would have been out of debt a long time ago, or the dollar similar in value to banana republics in Africa! But it was not. The US dollar is still and strongly backed by its wealth - its people.
Habits die hard, and as such, the common people still have faith in a system that had served each other well. The US dollar was supreme, not because anyone was forced with a gun to use it, but because of faith and confidence in the american people.
Faith that, that resourceful and freedom seeking people will continue to fund the world. Faith that they have the resources to back the dollar. Factual believe that even if they are now trillions in debt, just a few summer blockbuster movies would be enough to pay off the debts and have some left over for another freedom seeking adventure to save mankind.
Such beliefs are not unfounded, for they do have the might and capability, and had provened to be the greatest consumers and producers in the world, compared to the penny pinching europeans.
European Union.
California, New York and Detroit cannot ever hope to secede from USA, nor are they stupid to do so. Turkey, Greece and Italy can do so, anytime they wish. What will happen to their EU dollar then? And then backed by what wealth?
Compared in terms of stability, the US dollar is still the most stable. Place you faith in EU and save in EU dollars, then one must pray hard that the europeans will always stay united as one common entity.
Iran
What is an exchange or bourse, if not for speculations?
Why would Iran need an exchange when they are already producers of oil, and profiting from oil?
Why force the world to trade in the semi-stable EU dollar for oil?
Most important of all, WILL SUCH TRADING IN THE IRANIAN BOURSE BRING DOWN THE PRICE OF OIL?
Everyone of us better pray hard it wont be succcessful, or we from non oil producers country will be made bankrupt soon.
Most of us humanity really don't care much for world affairs. As long as we can survive, with food on our table for an honest day's work, savings for our future and kids' future, we really don't bother.
But the price of oil had shot up too much for humanity to bear, for it raises the price of everything else. We are made to suffer unnecessarily for another nation's leadership's nuclear weapons ambition. Then they must pay. Along with the iranian agents and paid agents for their hogwash propaganda!