Russia says that's cool and they'll uses Rubles and the other Russian currency instead...


Japan, China and India are also ok with this...


Do any of you Economics professors have any idea what this will do to us?

 

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How much oil do we get from Iran? Can't we just use other currency also?

 

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The Euro is the obvious answer.

 

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It will make BT happy. Buy GOLD!!!!

The value of the dollar will drop by quite a bit, which should really help with our trade deficit situation and with domestic jobs. Sucks if you are rich though....so it probably wont happen.

They have been talking about this since 2007.

Oh Gosh. They're finally getting around to talking about it. Why did we let them use it in the first place?

 

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Here's the thing,


The world's reserve currency is the dollar.


Iraq in 03 thought they could do the same thing only then they didn't have Russia saying that's no problem you can sell to us in Rubles and we'll honor the contracts. Russia/China/Japan et al said it was fine for us to kill Saddam because they bought the idea that at the time we sold them on that he was bad, doing bad things and it would be better if he was removed...


You can go all tinfoil all you want but all those countries profited by us allowing all those oil contract out onto the open market.


Unfortunately now they aren't supporting our idea to do the same thing in Iran, and honestly I don't think they ever intended to hence our incessant droning on about their nuclear weapons program...


Economically what this means "IMHO" is that if Iran does this and Russia says no problem along with China, India, and Japan who use those dollars to buy our debt and prop up our economy then what is outlined Here is a very real possibility.

Is it a certainty?

Maybe not but methinks the worm is about to turn in the good ole USA.

 

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From the article for those who don't read a lot.


Iran swiftly countered planed US sanctions against its Central Bank yesterday by announcing that it will no longer accept the US Dollar as payment for its oil shipments to India, Japan and China, and further announced that bilateral trade between itself and Russia will, also, break from the US Dollar for settlement in favor of the Iranian Rial and Russian Rubles.


Think about that for a minute, or read the article I linked above.

 

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It doesnt really mean anything.


You can already trade dollars for any other currency...so pricing oil in a different currency wont change anything.


edit - the linked article seems to throw around alot of hyperbole and allows the reader to pretend the dire tone is actually in the Russian report.


It also states that countries are forced to stockpile dollars in order to get oil. Obviously you can trade any form of currency for dollars so there is no need to stockpile dollars. Just like you dont need to stockpile 30 years worth of food and water because you can always trade for it later. If you want oil, there is zero incentive to buy US govt bonds...buying US bonds is a completely seperate decision. The connection between the two does not exist since there are currency markets.

We didn't let them trade in dollars, we forced them to trade in dollars via direct and open military threat if they did not.

I was being facetious, but my point is, we're in a cold war against Iran and have been for years. Why should we be surprised if our enemy is going to try to undermine us? Why haven't they done this sooner? We are choking their economy.

 

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