Currency Warfare: What are the Real Targets of the E.U. Oil Embargo against Iran?

Source: Global Research
Mahdi Darius Nazemroaya

Against whom is the European Union’s so-called “oil embargo on Iran” really aimed at?

This is an important geo-strategic question. Aside from rejecting the new E.U. measures against Iran as counter-productive, Tehran has warned the member states of the European Union that the E.U. oil embargo against Iran will hurt them and their economies far more than Iran.

Tehran has thus warned the leaders of the E.U. countries that the new sanctions are foolish and against their national and bloc interests. But is this correct? At the end of the day, who will benefit from the chain of events that are being set into motion?

 Are Oil Embargoes against Iran New?

Oil embargos against Iran are not new. In 1951, the Iranian government of Prime Minister Mohammed Mossadegh with the support of the Iranian Parliament nationalized the Iranian oil industry. As a result of Dr. Mossadegh’s nationalization program, the British militarily blockaded the territorial waters and national ports of Iran with the British Royal Navy and prevented Iran from exporting its oil. They also militarily prevented Iranian trade. London also froze Iranian assets and started a campaign to isolate Iran with sanctions. The government of Dr. Mossadegh was democratic and could not be vilified easily domestically by the British, so they began to portray Mossadegh as a pawn of the Soviet Union who would turn Iran into a communist country together with his Marxist political allies.

The illegal British naval embargo was followed by regime change in Tehran via a 1953 Anglo-American engineered coup d’état. The 1953 coup transformed the Shah of Iran from a constitutional figure head to an absolute monarch and dictator, like the monarchs of Jordan, Saudi Arabia, Bahrain, and Qatar. Iran was transformed overnight from a democratic constitutional monarchy into a dictatorship.

Today, a militarily imposed oil embargo against Iran is not possible like it was in the early 1950s. Instead London and Washington use the language of righteousness and hide behind false pretexts about Iranian nuclear weapons. Like in the 1950s, the oil embargo against Iran is tied to regime change. Yet, there are also broader objectives that go beyond the boundaries of Iran tied to the Washington’s project to impose an oil embargo against the Iranians.

Tehran Pushes to Ditch the US Dollar

Source: Casey Research
Marin Katusa - Chief Energy Investment Strategist
Casey Research

Report: India and Iran are hammering out a deal to trade oil for gold 

Rumors are swirling that India and Iran are at the negotiating table right now, hammering out a deal to trade oil for gold. Why does that matter, you ask? Only because it strikes at the heart of both the value of the US dollar and today's high-tension standoff with Iran.

The official line from the United States and the European Union is that Tehran must be punished for continuing its efforts to develop a nuclear weapon. The punishment: sanctions on Iran's oil exports, which are meant to isolate Iran and depress the value of its currency to such a point that the country crumbles.

But that line doesn't make sense, and the sanctions will not achieve their goals. Iran is far from isolated and its friends – like India – will stand by the oil-producing nation until the US either backs down or acknowledges the real matter at hand. That matter is the American dollar and its role as the global reserve currency.

The short version of the story is that a 1970s deal cemented the US dollar as the only currency to buy and sell crude oil, and from that monopoly on the all-important oil trade the US dollar slowly but surely became the reserve currency for global trades in most commodities and goods. Massive demand for US dollars ensued, pushing the dollar's value up, up, and away. In addition, countries stored their excess US dollars savings in US Treasuries, giving the US government a vast pool of credit from which to draw.

We know where that situation led – to a US government suffocating in debt while its citizens face stubbornly high unemployment (due in part to the high value of the dollar); a failed real estate market; record personal-debt burdens; a bloated banking system; and a teetering economy. That is not the picture of a world superpower worthy of the privileges gained from having its currency back global trade. Other countries are starting to see that and are slowly but surely moving away from US dollars in their transactions, starting with oil.

If the US dollar loses its position as the global reserve currency, the consequences for America are dire. A major portion of the dollar's valuation stems from its lock on the oil industry – if that monopoly fades, so too will the value of the dollar. Such a major transition in global fiat currency relationships will bode well for some currencies and not so well for others, and the outcomes will be challenging to predict. But there is one outcome that we foresee with certainty: Gold will rise. Uncertainty around paper money always bodes well for gold, and these are uncertain days indeed.

Threat to China: Will Corporatists in U.S. Goverment Move Forward to Assist Big Oil in Vietnam Discovery

Source: Activist Post

Brandon Turbeville

It is now almost universally accepted among the general population and political commentators as a foregone conclusion that the United States and China will eventually face off in direct conflict at some point in the future. The decline of the American Empire and the simultaneous rise of the Chinese Empire will no doubt cause the two imperialist nations to butt heads eventually, most likely resulting in currency wars, diplomatic disputes, proxy military battles and, ultimately, direct military confrontation.

The massive amount of U.S. Treasury bills held by China, as well that of other Western countries, is becoming an increasingly unstable situation economically the world over. Indeed, China has expressed antipathy toward being considered the worthless currency recycling bin, and is a powder keg that is almost ready to blow. Especially as holding on to Western currency becomes less and less advantageous for Chinese economic policy. When the powder keg does blow, Western currency  - American currency in particular – will be smashed to pieces.

Not only that, but with the acceleration of foreign policy disagreements between the U.S. and China also on the rise, specifically but not limited to areas like Tibet, Taiwan, Libya, Africa (as a whole), North Korea, and Iran, the likelihood of direct military conflict looms even heavier as time progresses and as each empire marches forward in imposing their wills on masses of people who merely wish to be left alone to control their own destiny.

However, yet another issue has arisen that will only serve to heighten the tension between the United States and China. Interestingly enough, as has so often been the case in recent years, the United States will find itself tangled in another affair centered around oil and initiated at the behest of the large multinational oil companies.