Well the ball has begun to roll on the economic wars. Syria has struck first, by changing to the Euro for all transactions. This has prompted the United States government to stop all transactions with Syria, and all American banks are to close any accounts with the two Syrian banks. Read On>>>
The Daily Star
The reasoning given by the US Treasury Department is to crackdown on any terrorist transactions. The two Syrian banks that will be affected are the Syrian Lebanese Commercial Bank, and the Commercial Bank of Syrian.
Syria has switched all of the state's foreign currency transactions to euros from dollars upon political confrontations with the United States, the head of state-owned Commercial Bank of Syria Duraid Durgham said. Adding that this decision is important and necessary at a moment when the Americans are threatening Syria in a way that could complicate banking operations between Syria and European countries.
Syria has a strong relationship with the European Union, and considers them the first strong commercial partner. Syria fears that the pressure being applied by the US may damage that relationship.
The United States has been heading international pressure on Syria for its alleged role in the assassination of former Lebanese Prime Minister Rafik Hariri and aiding the crisis in Iraq which Syria denies.
Syria has been under U.S. sanctions since May 2004, meaning it can not import American products other than food and medication.
Why is the US Worried?
Although the administration may put on a brave face at the moment , they understand the problems that will arise if many more countries switch to the euro. The US has a Fiat system, which means that it is only supported by the demand for that dollar. So for the dollar to maintain it worth on the market there has to be a demand for the US Dollar.
So Syria by changing its currency to the euro, has started the leak in the levy so to speak. The United States is forced in to a position of having to make a move.
As much as your friends may tell you that it won't hurt if countries start changing to the euro, it will. So set them down and explain to them that, this would be true if the dollar was backed by gold and silver like it use to be.
The key word is demand, if the countries start to drop the dollar as there forgein currency, the demand is less, and weakens the dollar.
Next Iran
In the past I have written numerous diaries on Iran and their plan to change to the euro, but taking it to the limit, by creating their own exchange. Iran is opening a Bourse on March 20th according to Dr. Elias Akleh's paper that was published in AMIN,
On March 6, 2006. More and more the inter national community is speaking out on the power grab this administration is making in the Middle East. Dr. Akleh, has come to the same conclusion that I have and for the same reasons.
Understanding the risk Iran is trying to win as much partners as it could on its side. Iran gave the Asian Capital Partners and the Future Bank of Bahrain permissions to invest 100 million Euros each in its stock market. Three other Lebanese big investors were also given permission to invest up to 50 million Euros in Iran's stock market. Iran is now closing a deal with China that would make Iran the leading oil supplier to China. This long-term deal is valued at $100 billion. China's demand for oil is expected to soar exponentially in the next few years. Iran is also negotiating with European gas companies such as Total, Shell and Repsol in an attempt to give them rights to produce liquefied natural gas (LNG) in Iran.
Iran was neither the first nor the only country to consider switching to Euro. In November 2000 Iraq made that shift. Through its Oil for Food Program Iraq had converted all its money in its UN account into Euro. It also had converted its $10 billion reserve fund into Euro. The American/British invasion of Iraq had put a stop to this switch, and they came to control the second largest oil source in the world, giving them a "veto power" in OPEC.
(The one thing that I didn't realize was that by controlling Iraq, the United Stats now has veto power, Via Iraq.) Wasn't over oil my ass.
Others Want to Trade In Their Fiat
Other counties are looking to get away from the fiat system of the US. Names on that list are Norway, and Venezuela.
The Norwegian Bourse Director Sven Andersen expressed his wish to establish an oil bourse priced in Euro in his country to boost its economy. Such a bourse would compete with the bourse in London and would give oil customers other options for payments. He invited the Norwegian State oil and Hydro to support his idea. Such ideas have been discussed for years in Norway, but have never gone any further than just talk.
Venezuela's President Hugo Chavez is also trying to get away from the fiat Dollar. He had entered into trade agreements with other South American countries, such as Cuba, to barter services and goods for oil without the use of any currency. Bolivia's new President Evo Morales has promised to nationalize the country's oil fields, and has also shown tendencies to shy away from the Dollar.
If more and more oil producing countries move to the euro, other countries will be likely to dump the dollar and also make the move.
This would pose a problem for the US, that war will not solve, and the possibility of a deep recession or a possible depression would be just around the corner.
ABA
Ps. Let there be no misunderstanding, I don't point this out because I wish to see the US fail, but because I want to get this out to inform to stop the collapse. If you feel that the path we are headed down under this administration isn't going there then I have not done my job.