Bending the Third Rail
Because We Should, We Can, We Do
Tuesday, January 24, 2006
PetroEuros
William Clark wrote this last year:
It is now obvious the invasion of Iraq had less to do with any threat from Saddam’s long-gone WMD program and certainly less to do to do with fighting International terrorism than it has to do with gaining strategic control over Iraq’s hydrocarbon reserves and in doing so maintain the U.S. dollar as the monopoly currency for the critical international oil market. Throughout 2004 information provided by former administration insiders revealed the Bush/Cheney administration entered into office with the intention of toppling Saddam Hussein.[1][2]

Candidly stated, ‘Operation Iraqi Freedom’ was a war designed to install a pro-U.S. government in Iraq, establish multiple U.S military bases before the onset of global Peak Oil, and to reconvert Iraq back to petrodollars while hoping to thwart further OPEC momentum towards the euro as an alternative oil transaction currency (i.e. “petroeuro”).[3] However, subsequent geopolitical events have exposed neoconservative strategy as fundamentally flawed, with Iran moving towards a petroeuro system for international oil trades, while Russia evaluates this option with the European Union.


Now we see that Iran is pushing for a petroeuro. I don't think most Americans, myself included, fully understand the impact this is going to have on our lives. It is not going to be pretty. Clark goes on to write:
The proposed Iranian oil bourse signifies that without some sort of US intervention, the euro is going to establish a firm foothold in the international oil trade. Given U.S. debt levels and the stated neoconservative project of U.S. global domination, Tehran’s objective constitutes an obvious encroachment on dollar supremacy in the crucial international oil market.

From the autumn of 2004 through August 2005, numerous leaks by concerned Pentagon employees have revealed that the neoconservatives in Washington are quietly – but actively – planning for a possible attack against Iran.


I do believe that the U.S. will bomb Iran before the year is done. What do we the people do about this? Is this regime actually dragging us into a world war?
1 Comments:
Blogger Greyhair said...
Lynne, thanks for these posts and links. I've been looking for further information on this. I'd like to find an article that explains, in layman terms, exactly the sequence of events that occurs if the international community shifts from petro-dollars to euro-dollars.

I think, in short, it means that U.S. treasury interests rates would have to go up significantly to attract investment in the U.S. debt. Depending of how high those rates would have to go would affect how devastating this would be to the U.S. economy. Let me just say that in the 1970's during the first oil shock, mortgage interest rates in the U.S. (when I bought my first house) were 18% and unemployment was like 10%.