mikepepler wrote:
I'm still mystified why we're there at all. I guess it's partly the "special relationship" with the US, and maybe the UK's policy on ensuring oil supply lines up with that of the US?
We are Dubyas fig leaf.
Usual old reasons... The normal mechanisms of international politics - blackmail, threats and/or bribery. Probably something to do with military technology, maybe Trident replacement or other big 'technology sharing' military contracts - "Do as I say or I wont let you play with the big boys toys any more".
... and/or threats to blow the whistle on the evil dooers in the Labour party. I'm guessing the FBI or NSA also has the dope on the high level paedofiles that Operation Ore turned up and TBliar managed to keep the lid on a few years ago.
For what it's worth, here is Greg Palast's take on the subject:
You're getting warm. The answer is Irwin Stelzer. He is the guy who is a good friend of George Bush from the Hudson Institute, and the most powerful lobbyist in Britain representing British-American interests and, by the way, chief lobbyist for Rupert Murdoch. As soon as Bush seized the White House, Stelzer walked into Blair's office and said ?we noticed that you were supporting Mr. Gore during the Presidential election' - even though clearly that didn't carry many states. Blair's effective endorsement of Al Gore did not go unnoticed. And there was a price to be paid. Blair was given a list of the things that would befall Britain from military subsidies and equipment, to a reduction of value in the dollar versus the pound, which would destroy England's exportability. And Blair was basically told get in line, stand up and salute or "here's your last cigarette, Tony."
Blue Peter wrote:I believe that Iran is planning on setting up a bourse to sell oil denominated in Euros, rather than the US dollars currently used.
If this happens, and there is a big uptake, there are fears that it could harm the US dollar, because you wouldn't need dollars to buy oil, and judging by its trade deficit, the US doesn't make anything else which people want to buy.
Thus the US dollar price of oil would rise (because the dolalr falls). Given that the US consumes 25% of oil (is this figure correct?), then would this be a bad thing for the rest of the world? It would presumably cut US oil usage and so give us longer to prepare.
Peter.
P.S. Of course, I know that the US might not take this lying down.
The Iranian oil stock exchange has been running since march. It is a higher risk if the two major Eurasian powers, Russia and China, exchanges their stablisation funds from dollar into euro since the dollar would be subjected to inflation under such circumstances.
The Iranian oil stock exchange has been running since march.
It was registered recently, but didn't think it was up and running yet. Have you got any links for info?
Re iraq and reasons for invasion - maybe the reason that oil output has slowed in iraq is because it would make sense to sell it once the price increases to crazy amounts. Maybe they didn't want to increase iraq's production, but slow it down - am i right in thinking the US isn't a major importer from Iraq? Just thinking outside the box.
Of course, the fact that Iraq shares a border with Iran and was selling oil in euro's might have had a little something to do with it too...
mikepepler wrote:Well, the last country that started taking payments for it's oil exports in euros was Iraq around 2000.... and look what happened there.
If that was the reason , makes you wonder why we got involved?, Why would we give a monkeys about what Iraq/Iran selling oil in Euros?
Having been reminded about this thread by the lastest post I wanted to suggest an answer to the question above.
It is generally agreed on this forum that the USA prints dollars to finance purchase of oil all round the world and this allows a higher standard of living in the USA than justified by economic fundamentals. If oil was bought in euros around the world then the European Central Bank would have to print more euros to facilitate that and Europeans (who use the euro) would have the same dubious advantage as Americans: they can have an artificially high standard of living as long as euros are in demand. Is this a long-term benefit or a liability? I suggest Europe would build up the same risk as the USA of a collapse when a third party (China?) uses their currency for oil purchase in the future.
Better if as many countries as possible make their currency convertible and buy in their own currency. If that means some have to reduce oil purchases then they can lead the world off its addiction to oil.
That's an interesting article but I felt it came to a sudden stop without really answering the question posed about the real reason for nuclear Iran, merely concluding with
and for the US, the real reason is and has been for many years energy security above any other consideration.
which, I am inclined to think, is stating the bleedin' obvious.
Iran 'euro-based' oil bourse underway
Mar 11, 2007
An official said that the managing director of Iran's first petroleum exchange "Iran Oil Bourse" is expected to be appointed soon, bringing the oil-rich nation a step closer to opening its first 'oil bourse'. Majid Shayesteh, managing director of Kish Free Trade Zone Organization, said that President Mahmud Ahmadinejad has directed Iran's ministers of oil, economic affairs and finance to appoint the board of directors of the oil exchange and its managing director. He did not specify when exactly the exchange would open.
He also said the building which will house Iran's first oil exchange has been constructed on the Persian Gulf island of Kish and that the required technical equipment has been installed.
Shayesteh added that three major organizations are involved in the groundbreaking project, saying that coordinating efforts between the various groups initially delayed the project.
According to the official, the articles of association for the oil exchange have since been approved. Last month, a separate official announced that the petroleum exchange would begin operation "in the near future."
Mahmud Salahi, secretary of the High Council for Free Trade and Industrial Zones, had said that Iran decided to establish the euro-based oil exchange on Kish because "there was no such oil trading body in the region." The oil exchange will transact petroleum, petrochemicals and gas in various non-dollar currencies, primarily the euro. It would also establish a euro-based pricing mechanism for oil trading, or 'oil marker' as it is commonly called by traders.
Oil Minister Kazem Vaziri Hamaneh said earlier that a stock market for trade in shares of oil companies will be established in Iran's southern of Kish in the near future. While touring of a local gas transfer operation, the minister said the stock market will be set up in cooperation with the oil and finance ministries.
The stock market will be open to the public soon after the appointment of a managing director and members of a board of directors.
Last month, after a year of speculation, Iran changed its oil bourse from petrodollars to petroeuros.
Iran is pressuring its oil customers to pay in currencies other than U.S. dollars. Many nations are giving in to the pressure. This does not portend well for the U.S. dollar.
Officials from the Iranian oil ministry have stated that 60 percent of their oil transactions are conducted in non-dollar currencies, but now for the first time there is outside confirmation of this shift.
Officials from Zhuhai Zhenrong Trading, a Chinese owned company, confirmed that they began paying for Iranian oil in euros starting late last year. The company is Iran?s biggest crude oil customer, purchasing more than a tenth of Iran?s total oil exports.
?Most of China?s purchases have shifted to euro,? reported a Chinese state oil trader.
In addition, Japanese officials have indicated they are willing to pay for Iranian crude in yen if necessary. Japanese buyers, including Nippon Oil, said Iran had signaled it wanted them to switch their oil purchases out of dollars but were waiting for a formal request.
All told, Iranian officials claim over half their customers now pay in non-dollar currencies.
This shift of trade from the dollar to other currencies, such as the euro, is a worrying sign for the future of the U.S. economy.
The dollar, as the world?s reserve currency, is the monetary unit used in the majority of global transactions. Most commodities that are traded on the world market, including oil, are priced and traded in dollars. This means nations must hold large dollar-denominated reserves to conduct global trade.
This extra demand for the dollar has allowed the United States to reap benefits not available to other nations?one of the biggest being it has allowed America to overspend and run up massive trade deficits without experiencing the normal negative consequences such as currency devaluation, higher interest rates and price inflation.
Iran is, of course, only one nation, and its oil sales are only a fraction of total dollar-denominated trade. However, this precedent is a crack in the dollar?s reserve currency status. The danger lies in other nations shifting away from the greenback?and already this is the clear trend in global trade.
The U.S. economy?weakening under massive debt loads, trade imbalances and ongoing wars?is vulnerable to a currency attack. Time will tell how quickly other nations break away from the dollar.
The economic benefits of having the world?s reserve currency are huge. Without it America?s economy would be in serious trouble. For more information on the world?s shift away from the dollar, read ?New Global Trend: Dump a Dollar, Buy a Euro.?
