Iraq War Conspiracy - For Oil or Dollar?

[mike435]

watch the video and lets talk about it here


from political videos posted by donsaid

[donsaeid]

changed title of thread!

what do you want to talk about!? start talking and share your idea on the video!

[donsaeid]

Dollar vs EURO -- Weapons of mass destruction


There were weapons of mass destruction in Iraq, in the form of EURO currency. The petrodollar depends upon Iraq's oil reserves to defend the United States dollar against the EURO and other currencies. In 2001, well before Iraq's invasion, the dollar faced uncertainty as an overpriced, debt heavy currency against a new and robust EURO. In early 2004, the dollar is losing ground.

The economics will change however. Now that The United States of America has taken both Iraq and Afghanistan and owns those country's natural resources, the dollar plans a brighter future, or a stable one at best. Iraq trades (again) in dollars. The White House said all along they were freeing Iraqis and Afghanis from tyranny, and searching for weapons of mass destruction, and that the US-military was not invading those countries for oil, but that wasn't true.

War protesters claimed George W Bush was invading Iraq for oil. That was only partly true, and their cries for peace were uninformed. US-led invasions of Iraq and Afghanistan were for oil, but not for consumption. Pre-Iraq invasion, Saddam Hussein was trading in EUROs. Afghanistan is key to piping oil out of the Caspian Basin.

Discussing stocks, currency, and economics is not always exciting, and it is as vauge as weapons of mass destruction. The media dumbs-down viewers with sensational snipets. General accounting practices, and world economic balance sheets are far too boring for the 6 o'clock news. Less than five percent of journalists in broadcast and print claim to understand economics, fewer understand how the US dollar / petrodollar fits into the global economy. Hence, it isn't discussed, and the "war" against Iraq and Afghanistan turned into a media blitz or humanitarian issue without background information on White House policy.

The United States will flex muscle against any commodity threats against the petrodollar. A government or business standing in the way of "oil progress" would lose. In April 2001, the Australian dollar plummeted when Australia's government and Foreign Investment Review Board rejected a merger between Royal/Dutch Shell and Woodside Petroleum. Australia's dollar fell to US50.42, and Woodside Petroleum lost $1 billion market value on decision day. The fight for oil is second to religion as the reason and cause for war throught history, and yet oil itself is a relatively new commodity to consumers.

The United States dollar abandoned gold markets under the Nixon administration in 1973. The US media didn't pay attention to such a bold move, because sensational headlines of the day were related to long gasoline lines, electrical shortages, and Watergate. Even 30 years later, consumers won't read in newsprint why our dollar is dependent upon oil. Keeping oil priced exclusively in dollars was enough cause for waging war in Iraq after Iraq's bold switch to EURO oil payments in 2002. The White House public relations campaign chose to pick emotional reason for invasion. OPEC, North Korea, Iran, and Russia now plan to trade in EUROs as the dollar continues to slide in value.

Economist commentator Sonja Ebron wrote, "An OPEC switch from the dollar to the euro would bring a quick and devastating dollar and Wall Street crash that would make 1929 look like a $50 casino bet." This prediction was understood by the Clinton administration, but the Bush administration took action to boost the petrodollar.

The greatest financial weapon against the United States is the EURO. It is the first currency to present a threat against the dollar. The EURO is a shared currency of 15 European nations centered upon Germany and France. The economies and populations of the euro countries are as large as that of the United States, and more tightly bound to the Middle East, said Ebron. As large as the European Union appears today, it continues to grow. The United States is landlocked. The world is suddenly too small for the dollar to grow.

Since 1945 the dollar has been the global oil transaction currency. These dollars are recycled from oil production to the US as Treasury Bills and assets in US stocks and real estate, which is a substantial portion of the financial market. The EURO becomes the alternative currency to nations wishing to switch.

Now for the difficult part... although the Asian Times writes a fairly "idiot-proof" description. In 2002, the US debt was $6 trillion against a gross domestic product of $9 trillion. Global economies have, since WWII, captured dollars to service foreign debts, and accumulated dollar reserves sustain the exchange value of their own currency. The world's central banks hold dollar reserves equal to their currency in circulation. The more pressure to devalue a currency, the more dollar reserves are required. This makes each economy dependent upon the US dollar, or known as dollar hegemony, constructed mainly by oil -- in other words, oil producing nations historically only accepted dollars, until the EURO. But with this currency game, the US essentially owns the world oil trading market for free, and allows the US to build its debt based upon credit assets they don't physically own. With The United States in control of Iraq, oil trade reverts to dollars.

With a strong dependency upon oil, and petrodollars secure, the White House hopes the EURO will slide. The EURO economy is currently $9.6 trillion. As more countries jump on to use EURO, their economy grows. The US either takes over the assets they trade, like Iraq, or convince the rest of the world to exchange their currency for dollars. The US is urging Tony Blair not to adopt the EURO for this purpose. The EURO is new, has little debt. The US dollar has a substantial debt, but is heavily used. The European Union itself is a larger consumer of oil than the US.

These are White House games you won't read about in the US media. This one you should pay attention to.

[mike435]

well i think the discution is much passed the freedom phase
so lets just focouse on video and what it says about dollar.

[donsaeid]

Killing the dollar in Iran
By Toni Straka


Could the proposed Iranian oil bourse (IOB) become the catalyst for a significant blow to the influential position the US dollar enjoys? Manifold supply fears have driven the price of crude oil to its recent high of US$67.10 - only a notch below its highest price in inflation-adjusted dollar terms. With the world facing a daily bill of roughly $5.5 billion for crude oil at current price levels, it becomes apparent that sellers and purchasers of the black gold are looking into all ways that could lead to a financial improvement on their respective sides.

Non-US-dollar holders so far have been the victim of additional transaction costs in the oil trade. The necessary conversion of local currencies into oil-buying greenbacks can be considered a hidden tax, charged and enjoyed by the international banking sector. The IOB, by eliminating this transaction cost, will become



a factor that could unsettle the dollar's dominant position. While the worldwide bottleneck of inadequate refining facilities and partly dramatic declines in production - for example in the North Sea - are two factors that cannot be eliminated in the short term, there is one area left which could result in smiling faces of oil producers as well as most buyers.

Oil consumers are entangled in a web of supply fears that span the globe. In Venezuela, President Hugo Chavez threatens to divert oil supplies from the US to China, which faces severe gasoline and diesel shortages these days. Attacks on Iraqi oil installations have slowed exports there. Ecuador's oil industry is still recovering from a strike, while Nigerian oil companies are in the middle of efforts to avoid a strike there.

Until now, oil has been solely priced, traded and paid for in the greenback on markets in both London and New York. But monthly worldwide oil revenues of over $110 billion (on a 20-trading-day basis) - a third of which ends up with OPEC (Organization of the Petroleum Exporting Countries) members - raise the question of what happens to these cash mountains. According to the most recent data from the US Treasury Department, OPEC members have parked only a skimpy $120 billion in direct dollar holdings, which are almost equally split between equities and American debt paper. This is a clear indication that oil producers are investing their windfalls elsewhere. The yield spread between US and EU debt papers in favor of the EU is another hint where the petrodollars might be heading.

Especially in the case of Iran, it does not make sense to accept dollars only for its much-desired commodity. Given that Iran is seen as a hostile country by the current US administration for its intention to build its own nuclear reactors, one wonders whether the new IOB will not try to attract buyers other than Americans. Iran has recently announced that the new oil exchange will start up its computers in March 2006.

The proposal to set up a petroleum bourse was first voiced in Iran's development plan for 2000-2005. Last July, Heydar Mostakhdemin-Hosseini, who heads the board of directors of the Iranian Stock Exchange council, said authorities had agreed in principle to the establishment of the IOB, where petrochemicals, crude oil and oil and gas products will be traded. The oil exchange would strive to make Iran the main hub for oil deals in the region and most deals will be conducted via the Internet. Experts from London's International Petroleum Exchange (IPE) and the New York Mercantile Exchange (NYMEX) have reportedly confirmed the feasibility of the project.

The IOB can count on two sharp arrows in its holster. It can - and probably will - lure European buyers with oil prices quoted in euros, saving them dollar transaction costs. And it can strike barter deals with oil-hungry giants like China and India who have a lot of products and commodities to offer. One doubts whether American hamburgers and legal services will be considered adequate collateral for the world's most after-sought resource.

Worse than an Iranian nuclear attack?
Weaned off the almighty commodity, the US dollar can have a deeper impact on the US economy than a direct nuclear attack by Iran. The permanent demand for dollar-denominated paper stems substantially from the fact that until now almost all resources of the world are quoted in it. While this led to the eurodollar (US dollar-denominated deposits at foreign banks or foreign branches of American banks) market in the 1970s, the new terms of trade could ring in the demise of the dollar as the premier reserve currency.

With the world economy depending so much on oil, the black gold itself can be seen as a reserve currency that will be handed out against only the best collateral in the future. Last month, the Federal Reserve Bank of San Francisco published a paper about the progress of the diversification of central banks' reserves around the world. It concluded that the dollar's position is on the decline in many countries. China, the new industrial giant, has officially declared that it will diversify a part of its forex holdings into oil by building a strategic petroleum reserve. Construction of storage tanks has begun this year and will take several years until completion. China has not yet said how many barrels of oil it wants to store. The implications for the oil market can only be guessed as China wants to use its future reserves to smooth out spikes in oil price.

Iran holds a strong hand as the No 2 producer of crude behind Saudi Arabia, pumping 5% of the world's oil demand. Politicians there will also keep in mind that dollar deposits might become a burden in the future, if the US steps up its current war of words to the level of economic sanctions in the attempt to halt construction of Iran's nuclear power plants. Money in the bank does not help when you have no access to it. Substituting Iran's domestic oil demand partly with nuclear power will place the country in a win-win situation. Cheaper nuclear energy and increases in oil exports from the current level of roughly 2.5 million barrels a day will result in a profitable equation for Iran.

Only one major actor stands to lose from a change in the current status quo: the US, which with less than 5% of the global population, consumes roughly one third of global oil production. Oil in euros would benefit millions more in the EU and its trading partners, though. And it would loosen the grip the US has on OPEC members. Thinking of the rapid growth of hostilities between the US and Arab nations in recent years, a renunciation of the dollar appears to be more than just an Arab daydream.

As this development poses a very real danger to the superior status of the greenback and the interests of the US, the "president of war" can be expected to take a strong line against the winds blowing from the Middle East. One may be reminded that Saddam Hussein had entered into discreet talks with the EU, proposing to sell his oil for euros. That was in the year before the first oil war of this century.

The IOB could help the euro to become the interim primary reserve currency before China and India rise to the first two slots in the global economic ranking in the next few decades. A decline of the dollar's position in oil trading might also open the floodgates in other commodity markets where the dollar is the medium of exchange but where the US has only a minority market share. A global economy driven by tough efficiency demands in the light of thin profit margins almost everywhere is a good primer for accounting changes in other commodity markets as well. This process could begin in resources like steel and energy and spread to all other resources that are marketed globally. The world outside the US has a lot to gain from it.

Toni Straka is a Vienna, Austria-based independent financial analyst and portfolio manager, who worked as a financial journalist for over 15 years and now evaluates global market trends. He runs a blog, The Prudent Investor, where this piece first appeared.

[mike435]

if the US dollar g-d forbid is devalued it is doomsday for us all

many country's are backed by the dollar
many countrys there assets are locked in US dollar in the US
every time the dollar looses value assets are instently wiped out
a 1% deminish in value of dollar means 1% deminsh in worth of somthing that is in the doller

now consider thins in the worlds biggest economy and 3/4th of the world economys and it spells desasteer for the dollar to be devalued

it is even bad for IRAN< EUROPE and the rest than they have no one to trade with

[donsaeid]

but this is really interesting!

because it shows vulnerability of USA! and how easy you can kill this Empire!

[mike435]

but this is really interesting!

because it shows vulnerability of USA! and how easy you can kill this Empire!

yes and that is why this empire has the biggest millitary in the world and more importantly is so keen to aid other countrys and aid theme

do you know how much every base contributes to the world economy


for every dollar that give aid close to doboule to triple come back to the US

but than we all have to much invested in this empire