Once Iran is allowed to set a new crude oil market with the euro it will only be a matter of time before the dollar takes a secondary position. That is only natural because as we pointed out before the EU imports as much oil from the Middle East as the US does and the EU supplies 45% of Middle East imports. What will the Fed do when billions of dollars start streaming into the US? The real bottom line is that the Fed will no longer be able to flood the world with dollar assets, namely US Treasury, bills, notes and bonds. That will result in a further fall in the value of the dollar, a precipitous fall. That is why almost all your assets should be in gold related asset; as the dollar falls versus gold – as gold rises – it will rise against all other currencies and remain the only real money.

            It should also be noted that late last year Russia and China inked a $100 billion oil and gas agreement and that China receives 13% of its oil from Iran. If you remember the US terminated all the previous foreign oil deals Iraq had after the invasion. We do not believe China will sit still for the US taking 13% of their oil imports. Incidentally, the nullification of those Iraq contracts cost the EU countries, Russia and China $1.1 trillion and we still see those events affecting politics and diplomacy between the US and those countries that effectively had their oil stolen. Any attack and occupation of Iran would create a crisis if not war between the neocons and China. We have to believe the neocons would do the same thing in Iran as they did in Iraq.

            It should also be considered that Iran has major military capabilities. Shock and awe are not going to work as well as they did in Iraq. Iran also controls the Straights of Hormuz with their new missile system. All Persian Gulf bound oil tankers must pass through these straights. An Iranian adventure is liable to prove disastrous for the US militarily, economically and financially. Regime change in Iran will guarantee an escalation of terrorism on a scale unimagined.

            It is evident that an attack on Iran would be solely a US-Israeli operation because the neocons do not have a ghost of a chance of getting a resolution passed in the UN Security Council, which includes China, Russia, France and Germany. If the US and Israel go it alone, the other important nations of the world might abandon the dollar in retaliation. That would definitely cause oil to be quoted in euros. That would kill the dollar as the world reserve currency. It would also cause other nations to absorb 30% to 50% losses and it would send gold straight out of sight.

            The moves by the neocons should be recognized for what they are and that is a desperate attempt to dominate the world’s largest oil supplies. As we have said often before, desperate people do desperate things.

America’s mercenary Army is taking on the appearance of Roman Legions of two-thousand years ago. A US company out of Ecuador has signed up 1,000 Colombian police and military staff to work as hired guns in Iraq for less than 50% of what US soldiers are paid. We are sure they were not told that two-thirds of those who are not killed in battle will die of depleted uranium poisoning and die horrible agonizing deaths. These hired killers are paid $2,500 to $5,000 a month, half of what US and British mercenaries are paid.

We would like to again point out that in 2003 and the first quarter of 2004 the Japanese created 35 trillion yen, which is about 1% of the world’s annual economic output. It was used to buy US dollars and forestalled a dollar collapse. The rebound allowed the reelection of George W. Bush and, of course, it was not in Japan’s best interests. This shows you, as we pointed out before, Japan made a deal after WWII – you do what we say and we will keep you in political power and you get to keep half of what you stole from Asians, most of whom you murdered. Japan has no independence - they take orders from Washington. They are a military protectorate or a colony of the US. Japan underwrites American economic and foreign policy.

 

GOLD, SILVER, PLATINUM, PALLADIUM AND DIAMONDS

 

            It looks as though the ECB has exceeded the European Bank Gold Sales agreement of 500 tons a year by 6.3 tons. These limits have been exceeded before. There are six weeks left to the end of the fiscal year on 9/26/05 and there should be no more sales from them.

 

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-- Posted Tuesday, 23 August 2005 | Digg This Article

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