Iran was planning on opening its own exchange market for trading its own oil, and other Middle East countries. The start-up date was to be March 20, 2006, but to some happenings in the region they have postponed it for a couple of months in hope that things would become stable. Read on >>>
Some analysts have predicted that this was just a ploy by the Iranians to try and topple the dollar. But according to
GoldSeek
As the nuclear standoff pitting Iran against the West continues, some conspiracy theorists are more focused on another plan that the Middle Eastern nation is pursuing. But they are jumping the gun if they still figure Iran is within days of launching a new international oil exchange that would sell its own and other Middle Eastern oil producers' black gold in euros rather than U.S. dollars, and which, the theory goes, could ultimately torpedo the greenback and the U.S. economy. Despite repeated reports over the past 18 months or so that the planned bourse would finally open for business on March 20, 2006 -- and go head to head with the New York Mercantile Exchange and the ICE Futures Exchange in London -- the start date has been postponed by at least several months and maybe more than a year.
Mohammad Asemipur, explained in what order the process will occur.
"In the middle of 2006, we are able to start the bourse," Mohammad Asemipur, special adviser on the project to Iran's Oil Minister, said when reached in Tehran. The plan is to trade petrochemical products first, with a crude oil contract coming last, a rollout that likely will take three years, he said. "Oh, crikey, it's at a much earlier stage than people would think," said British consultant Chris Cook, who claims credit for coming up with the idea for the exchange in the first place and is a member of the consortium headed by the Tehran Stock Exchange that is charged with bringing the project to life. "You can rest assured, there will not be a crude oil contract, Gulf-based, in my opinion, within a year -- and that would be really pushing it," Mr. Cook, a former director of ICE's predecessor, the International Petroleum Exchange, said when reached in Scotland. The electronic exchange is to be located on Kish Island in the Persian Gulf, an Iranian duty- and tax-free zone.
There are other things that are even more frightening when talking about the economy than the thought of what will happen once Iran does gain oil contracts with Middle Eastern countries and others around the globe.
The decline of the US dollar will not stop because of the set back of an Iranian Exchange,
The worth of the Euro continues to gain ground and the price of gold is expected to reach an all time high, due to countries like Thailand and China buying up the commodity.
GoldSeek and
AIR both put the repercussions that the U.S. economy will feel due to the diminishing dollar will happen over the next 6 months to a year, is a theory that is agreed no by the likes of Warren Buffet, Bill Gates, and recently Dennis Gartman.
The very concerns that will drive the U.S. dollar down, will prove supportive for gold.
As I said before there are some that feel that the dollar is still backed by the gold standard, and this is simply not the case. The U.S. dollar is on what is known as a fiat system. The dollar is built by its demand, and with the huge trade deficit, $804.9 billion, in 2005 up from $668.1 billion in 2004, according to Commerce Department report. Then you couple that with the record setting debt incurred by this administration, it is no wonder that the rumors are that the Chinese and other counties, are going to stop lending to the United States.
Monday when ask by a student, about the cost of the Iraqi war, Bush in his own dumb kind of way told the student we can do two things at once.
AP article
"Mr. President, with the war in Iraq costing $19,600 per U.S. household, how do you expect a generation of young people such as ourselves, to afford college a time like this, when we're paying for a war in Iraq?"
"Yes. Well -- hold on for a minute," Bush said. "Hold on. We can do more than one thing at one time. And when you grow your economy, like we're growing our economy, there is an opportunity to not only protect ourselves, but also to provide more Pell grants than any administration in our nation's history, and increase the student loan program."
What Bush forgot to tell the kid is, that what he (Bush) is calling growing the economy is what we call running the country on a credit card. This is where the 6th grade education comes into play there, Mr. (P)Resident.. The generation that this kid belongs to will be paying this debt off, and his grandchildren, [if he can afford to have kids] will also be stuck. You and your administration bragged about cutting the debt, only to see it grow at twice the rate the following quarter.
I understand that you get confused at times but that capital you assumed you had after the 2004 rip-off, would have been political capital, not monetary. Why is it that Bush said in 2000 he would run the country like a business and no one bothered to look at his record running business record? He ran 3 companies in to the ground, and bankrupt the state of Texas. He still has stock fraud charges pending against him, which were set aside, but not dropped. There again where is the media?
{On a personal note,} I can't understand how anyone can support the dilemma that this (P)Resident has gotten this nation into. Roads and National Parks are being sold; he pushes tax cuts that anyone with a 6th grade education can see is only really helping the top 2%. No matter how you package a pile of dog shit, the smell lets people know, "It's dog shit." And that pungent odor that you now smell is that pile of dog shit.
Why is it that most people don't see that Bush in his budgets does a lot of subsidizing of projects, and part or all of that money never reaches the target? Where does this money go? A wise Washington insider once said, "Follow the money."
ABA
