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Iran, Russia Ruffle US Feathers With Oil-Swap Deal

Tyler Durden's picture





 

This morning's apparent U-turn in US-Iran relations - when the US demanded the UN rescind Iran's invite to the Syrian peace conference having somewhat instigated their invitation in the first place - is a little confusing for some. However, as OilPrice's Joao Peixe points out, reports are emerging that Iran and Russia are in talks about a potential $1.5 billion oil-for-goods swap that is sure to upset the powers that be in Washington.

 

Submitted by Joao Peixe via OilPrice.com,

Reports are emerging that Iran and Russia are in talks about a potential $1.5 billion oil-for-goods swap that could boost Iranian oil exports, prompting harsh responses from Washington, which says such a deal could trigger new US sanctions.

 

So far, talks are progressing to the point that Russia could purchase up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods, according to Reuters.

 

"We are concerned about these reports and Secretary (of State John) Kerry directly expressed this concern with (Russian) Foreign Minister (Sergei) Lavrov…  If the reports are true, such a deal would raise serious concerns as it would be inconsistent with the terms of the P5+1 agreement with Iran and could potentially trigger US sanctions," Caitlin Hayden, spokeswoman for the White House National Security Council, told Reuters.

 

Russian purchases of 500,000 bpd of Iranian crude would lift Iran's oil exports by 50% and infuse the struggling economy with some $1.5 billion a month, some sources say.

 

Since sanctions were slapped on Iran in July 2012, exports have fallen by half and Iran is losing up to $5 billion per moth is revenues.

 

In the meantime, a nuclear agreement reached in November with Iran and world powers is in the process of being finalized, and the news of the potential Russian-Iranian oil swap deal plays to the hands of Iran hawks in Washington who are keen to seen the November agreement collapse.

 

The November agreement is a six-month deal to lift some trade sanctions if Tehran curtailed its nuclear program. Technical talks on the agreement began last week.

Under the terms of the tentative November nuclear agreement, Iran will be allowed to export only 1 million barrels of oil per day.

 

In mid-December, Iranian oil officials indicated that they hoped to resume previous production and export levels and would hold talks with international companies to that end.

 

This announcement sparked an immediate reaction from US Congress, which has threatened oil companies with “severe financial penalties” if they resume business with Iran “prematurely” following the six-month agreement reached in Geneva.

 

There are plenty of figures in Congress—Republican and Democratic alike—who are opposed to the deal. The key “Iran hawk” in US Congress, South Carolina Republican Lindsey Graham, has described the deal as “so far away from what the end game should look like”, which should be to “stop enrichment”.

 

The opposition in this case believes any talk between Tehran and Western oil companies is premature because they are convinced that we won’t see a comprehensive resolution after the six-month period, and that sanctions will be laid on stronger than ever before.

Yet again, it would seem, Iran is another proxy pissing match between the US and Russia... and remember, nothing lasts forever...

 


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Mon, 01/20/2014 - 15:14 | Link to Comment john39
john39's picture

nice to see good news for a change.

Mon, 01/20/2014 - 15:25 | Link to Comment thunderchief
thunderchief's picture

So uncle sam runs back to its extremist terrorist bed buddies, the house of Saud. Bend over and say uncle if you want to keep that petro dollar.

What a sad state of affairs for the USA.

Mon, 01/20/2014 - 15:57 | Link to Comment El Oregonian
El Oregonian's picture

Yup, and the Mongrels have stormed the walls and have overcome them. Sorry, the SHTF is about to begin... choices have consequences.

Boy, it is going to suck for the banksters when they impale their asses and set them upright in the courtyards of the town squares.

Mon, 01/20/2014 - 15:59 | Link to Comment J S Bach
J S Bach's picture

Good for them!!!  I love seeing countries trading freely without having to pay tribute to the International Usurers through petro dollars or interest on debt-based currencies.

Old fashioned bartering is one way to slay the beast.

Mon, 01/20/2014 - 16:51 | Link to Comment ZerOhead
ZerOhead's picture

I keep forgetting... who did Iran attack again?

Mon, 01/20/2014 - 17:40 | Link to Comment ZH Snob
ZH Snob's picture

did they really think Iran would adopt and embrace the petro dollar at this stage of the game?  at a time when the Saudis are all but through with it?  the sun is setting on this defend-the-dollar aggression around the world.  everyone has had enough of it, and China (or Russia) will always provide an alternative, much to the dismay of our lost leaders.

Mon, 01/20/2014 - 15:21 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Oil for P-800 Oniks?

Mon, 01/20/2014 - 16:09 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Frown.

Russia is the number 1 oil producer of the world and pumps almost 11 million bpd and export most of that.  Extra supply can't help the price they get for that export.

Either the reports or bogus or hmm wait, this is just 500K barrels.  Not per day.  Just a single shipment, to pay for some stuff Russia makes.

Never mind, that's a drop in the  . . . barrel.  Not enough to move price.  The Russkies are just selling some shit they built to Iran and Iran found a way to pay for it.

Mon, 01/20/2014 - 16:23 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Oil is fungible on world markets.

It matters not that Russia produces its own oil. Taking barrels of oil in exchange for goods is as good as taking fiat (some would claim better) based on commodity market pricing.

Mon, 01/20/2014 - 16:53 | Link to Comment Urban Redneck
Urban Redneck's picture

And it's like the Russians can't turn around and sell the oil to someone else in exchange for something more useful (to them). Petro-laundering, with a side of sovereign immunity...

Mon, 01/20/2014 - 17:31 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Both you guys are right.

It means Russia has decided to break the Iranian sanctions, and the EU will say not a damn word about it they want to stay warm.

Mon, 01/20/2014 - 18:27 | Link to Comment Jack Burton
Jack Burton's picture

Mobile Suoer Sunburn Anti Ship Missiles. Not your average dum missile, this baby flys with a big brain inside, capable of making the decissions needed to evade counter measures and hit the target. This isn't some old Chinese Silkworm, those days are over, Russia is deep into the world of high tech, this isn't the USSR. The west has never, ever faced weapons like this, if they do face them, all the easy wars will be over, America will awaken to CNN running stories of 5,000 USN sailors fighting for their lives on a burning Carrier. Not since World War Two has the Navy faced this type of thing. If Russia can built the best heavy anti aircraft missile system in the world S-400 - S-500, able to hit aircraft, missiles and smart bombs, imagine how much easier to build a mobile missile to hit large warships which are Big and Slow.

Tue, 01/21/2014 - 01:52 | Link to Comment matrix2012
matrix2012's picture

Forget about the China's oldies SilkWorm, instead do not discount  the existence of China’s latest DF-21D anti-ship ballistic missile (ASBM), dubbed as the "carrier killer", the biggest threat in the anti-access arena at the moment. The DF, or Dong Feng literally means 'East Wind' in Chinese.

On January 12, 2014, a photo of suspected test of the launch of DF-21D anti-ship missile was posted on the internet. Judging by the photo, the warhead of the missile is cone-shaped and there are nozzles on the missile for adjusting its direction. Perhaps the nozzles are used for terminal guidance and substantial maneuver to break through enemy defense, That is the first exposure of the test launch of the latest version of DF-21 after the first exposures of China’s DF-21A and DF-21B missiles.

According to an article by Wang Genbin, deputy commander-in-chief of Department 4 of China Aerospace Science & Industry Corp. (CASIC), on a journal publicly available, in the two decades since 1988, China spent 3 billion yuan ($494 million) in successfully developing DF-21A, 21B, 21C and 21D missiles and completed the transition from development of only nuclear missiles to that of both nuclear and conventional missiles and from fixed target to low-speed target. In addition, the accuracy has been improved from several hundred to several tens of meters.

In an interview with Asahi Shimbun, former US Pacific Commander Adm. Robert F. Willard said that China’s DF-21D has acquired initial combat capability

A US research institute believes that in 2011 and 2012, China conducted quite a few launches of DF-21D in the South China Sea and successfully hit and sank a simulated model of aircraft carrier made by transforming China’s Yuanwang 4 survey ship.

In the period between 2012 to 2013, China for the first time deployed for combat its DF-21D anti-ship missiles. One combat brigade of such missiles is located near Zhaoqing, Guangdong Province while a second brigade will be deployed in Anhui or Henan province. At present, US military believes that China’s anti-ship ballistic missile has already had combat capability.

Source: huanqiu.com “Exposure of suspected test launch of DF-21 anti-ship missile that has already been in service according to US source”

 

matrix

 

Mon, 01/20/2014 - 15:22 | Link to Comment lolmao500
lolmao500's picture

Don't you worry, Turkey and Murica are working hard to piss off Russia by invading Syria...

Today's bullshit (even pushed on CNN) : Assad runs nazi-like concentration camps with at least 11 000 dead so far...

https://twitter.com/anadoluagency/status/425344147860361216/photo/1

CNN has an exclusive clear evidence of systematic torture and killing of prisoners by the Assad regime.

A #policeman, designated with taking photographs of regime dissidents has defected from #Syria with 55,000 photographs of 11,000 victims. #AA

Riiiiiiiiiight. 55 000 photographs of 11 000 people... did they all took artsy pics with different outfits??

Mon, 01/20/2014 - 15:32 | Link to Comment Joe A
Joe A's picture

Well, that model worked really well in Yugoslavia. In 1999 when the Kosovo issue enflamed CNN said one day that 100,000 Albanian men went missing and presumed executed. A few days later the BBC said that 250,000 Albanian men went missing and presumed executed. Not even the Nazis of WWII had such capacity.

Rinse and repeat. If at first you don't succeed, try, try again.

Mon, 01/20/2014 - 15:37 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I heard some MSM 'news' channels report that they're cutting electrical cords to babies' incubators.

Mon, 01/20/2014 - 15:54 | Link to Comment Joe A
Joe A's picture

I just had an deja-vu when I read your post....hmmm....where did I hear that one before...?

Mon, 01/20/2014 - 16:17 | Link to Comment kridkrid
kridkrid's picture

That's one of those "red pill, blue pill" examples for me. When you don't realize until much later in life that everything is a lie (even the things that are true still exist within the context of a lie) you have to retrace your steps. I was a freshman in college for the first gulf war and had not yet begun to question everything. They had some balls on that one, but nobody called them out. Remarkable. I was going to write that they have to be a little bit better these days as people have the ability to share information more readily and call BS when BS exists... sadly... that's not the case.

Mon, 01/20/2014 - 18:08 | Link to Comment Winston Churchill
Winston Churchill's picture

Human skin lampshades, and soap made from dead nuns is always a good

follow up. Damn Huns, er....Syrians.

Depressing how the sames lies still work after a hundred years.

Tue, 01/21/2014 - 02:01 | Link to Comment matrix2012
matrix2012's picture

kridkrid, the phrase red/blue pills just reminds me :D

Not quite relevant for those avid readers of ZH, yet it's still a kind of fave lines to quote to the low information sheople :-)

 

"You take the blue pill, the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes."

Mon, 01/20/2014 - 17:53 | Link to Comment nightshiftsucks
nightshiftsucks's picture

Oh no,those poor incubators.

Mon, 01/20/2014 - 15:32 | Link to Comment john39
john39's picture

and Saddam, er, Assad's goons unplugged incubators with babies in them too...  before driving off in mobil chemical weapons trucks (oh wait, damn got rid of those too)...

Mon, 01/20/2014 - 15:36 | Link to Comment y3maxx
y3maxx's picture

...Moar New Wars in 3...2...1

Mon, 01/20/2014 - 15:40 | Link to Comment Al Huxley
Al Huxley's picture

I think you're getting your propaganda streams crossed, but I could be wrong, maybe they recycle their bullshit every 10 years, so it's reapplicable now.

Mon, 01/20/2014 - 16:18 | Link to Comment Tinky
Tinky's picture

No, this time it was Assad's forces using chemical weapons against their own people!

Except, of course, that the U.S. government was lying again:

http://www.moonofalabama.org/2014/01/missile-experts-white-house-made-fa...

Mon, 01/20/2014 - 16:20 | Link to Comment kridkrid
kridkrid's picture

The incubators and the mobile meth labs, I mean WMD labs were under Saddam, but they led to different wars. Of course, we've always been at war with eastasia.

Mon, 01/20/2014 - 16:47 | Link to Comment mick_richfield
mick_richfield's picture

Disney used to do their children's movies on a 7-year cycle.

I think you would have to stretch that out by 50% or so if the target audience is children of voting age.

Or of Selective Service age.

 

Mon, 01/20/2014 - 15:40 | Link to Comment lolmao500
lolmao500's picture

This ought to be fun too...

--> In the next hours, the Kurdish self-rule in northern Syria will be declared.

Interesting timing... Me thinks they have received the go ahead because Syria is going to be invaded for real this time... The Kurds can't defend themselves from Assad weapons but if Assad is deposed and Syria divided, as per the plan, then it all makes sense...

Mon, 01/20/2014 - 16:17 | Link to Comment Lore
Lore's picture

Heaven help you if there's oil and gas under your feet.  You will be targeted for Liberation.

Mon, 01/20/2014 - 17:58 | Link to Comment LeisureSmith
LeisureSmith's picture

I think i have to call bullshit on that one. Most likely the Turks trying to kick up some dust.

I like the Kurds, they are handing out some serious hurt to those Saudi backed, Turkish supplied, mentally unsound, Captagon crazed, goatloving jihadi cavecunts running wild in that part of the sandbox.

Good job kurds.

Mon, 01/20/2014 - 15:39 | Link to Comment Skateboarder
Skateboarder's picture

Show some clips of brown people either being predators of liberty or victims of abuse, over and over again ad nauseum, and come up with false allegations to incite the want of war. The sole two functions of corporate media.

Tue, 01/21/2014 - 17:25 | Link to Comment Sokhmate
Sokhmate's picture

it prolly was a scantily clad cosplay photo shoot. I'll volunteer for post processing.

Mon, 01/20/2014 - 15:16 | Link to Comment PontifexMaximus
PontifexMaximus's picture

The US would be more than happy to make this deal......first come , first served

Mon, 01/20/2014 - 15:33 | Link to Comment Sudden Debt
Sudden Debt's picture

unless Iran takes cheezecakes instead of gold, it's a possibilty... otherwise....

Mon, 01/20/2014 - 16:48 | Link to Comment mick_richfield
mick_richfield's picture

yellowcake ?

Mon, 01/20/2014 - 15:17 | Link to Comment peterUK
peterUK's picture

I like ZH. It’s an intelligent website. It proffers a reasoned competing perspective on financial markets.

But it owes its readership an apology of sorts, because by imploring them to sell and equities and buy gold and silver it has cost them a large fortune.

It daily parades its excuses, but in truth it can’t claim to be right when it’s been so, so wrong. 

The tragedy is that the website has morphed from being a contrarian opinion former to a contrarian shaker without credibility.  

I say this as a Brit who’s thankfully ignored its invocations and as a reader who laments its boneheadedness.

One day ZH will get it right. Perhaps sooner than later. But meanwhile, let’s be frank, it has  screwed its following more keenly than the muppets who follow Goldman Sachs.

Mon, 01/20/2014 - 15:23 | Link to Comment Overleveraged_a...
Overleveraged_and_Impatient's picture

ZH never said TO buy or sell anything. All they do is present compelling facts and opinions. You can do as you please with it

Mon, 01/20/2014 - 15:24 | Link to Comment peterUK
peterUK's picture

Absolute pish, sir. And you know it. 

Mon, 01/20/2014 - 16:03 | Link to Comment shovelhead
shovelhead's picture

I should listen to somebody who lives in a country that eats canned beans on toast?

 

Tue, 01/21/2014 - 02:17 | Link to Comment thestarl
thestarl's picture

and their fucked up teeth the soapdodgers

Mon, 01/20/2014 - 16:11 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

There is always an X in your upper right corner.

And you do realize that when someone is suggesting billions of people will die, they only have to be right once.

Mon, 01/20/2014 - 16:30 | Link to Comment Lore
Lore's picture

Peter:  There are innumerable sites where other people would be more than happy to do your thinking and make your decisions for you, and they'll even take your money.

Mon, 01/20/2014 - 16:57 | Link to Comment Sashko89
Sashko89's picture

Hey Peter their is mainstream financial news for you... go invest with those guys

Mon, 01/20/2014 - 18:22 | Link to Comment Disenchanted
Disenchanted's picture

Buy stawks then peterUK...I'm sure Goldman has some they'll dump, uh...unload, uh...sell to you.

In the future when the bottom drops out, come back and tell us how you made out.

Mon, 01/20/2014 - 18:34 | Link to Comment Jack Burton
Jack Burton's picture

Nice try peterUK, I read ZH, they have told the truth about manipulated markets. You do know stocks are manipulated via QE? ZH gives facts, I have never been told to buy gold by the ZH moderators. In fact, fool, gold is still, in the long run, the only sensible bet. If you read ZH for short term trading information and tips, you have gone mad! Don't troll by telling lies or even attempting to put words into others mouths and demand they defend them. I've been to one rodeo, a worlds fair, a picinic and I ain't never heard such rubbish as your initial post.

Stocks soar because of the Federal Reserve funding the price run up with printed money, in what way is ZH supposed to give trading tips in a world where governments fund market rises?

Better return to reading the Daily Mail online, old chap.

Mon, 01/20/2014 - 15:25 | Link to Comment Bioscale
Bioscale's picture

One question: what would YOU recommend me as a reasonable investment for my retirement in 20-30 years? I mean what if not gold? All the folks around me put their money into government bonds, bank deposits, capital insurance. Will gold to be a bad investment in 20-30 years compared to its alternatives? I believe the opposite.

Mon, 01/20/2014 - 15:25 | Link to Comment Smartie37
Smartie37's picture

@PeterUK,

What is the rate of Actual inflation since 1999? and 2008?

What is the change in the S&P 500 index expressed in Real dollars since 1999?  and 2008?

Answer first, then opine.............. 

Mon, 01/20/2014 - 15:31 | Link to Comment peterUK
peterUK's picture

I'm not opining about anything, Smartie. I'm merely drawing attention to the relentless bearishness of ZH and the merciless bullishness of equities. That and the fact that ZH should come clean and admit it got it wrong.  A smidgen of mea culpa wouldn't got amiss.

Mon, 01/20/2014 - 15:50 | Link to Comment Tinky
Tinky's picture

I'd suggest that you engage in a careful study of the nuanced distinction between trading and investing so as to protect one's wealth. Once you've mastered that distinction, you'll be welcomed back – but not before.

Mon, 01/20/2014 - 15:56 | Link to Comment superflex
superflex's picture

Answer the question about real inflation then.

You know the answer.  You're just trolling in an article which has nothing to do with equities or commodities.

Now get back to Yahoo Business and BTFATH!

 

Mon, 01/20/2014 - 16:15 | Link to Comment ebear
ebear's picture

There's nothing unique about getting it wrong and not owning up to it.  On the contrary, that seems like an industry standard.   The difference is ZH doesn't charge anything for their opinion (which in the end is all it really is) so the old adage "you get what you pay for" applies, does it not?

As websites go, most people are attracted by content which supports their world view - a case of "I like what I know."  Searching out contrary opinion is not something most people do, and even fewer will take a position contrary to their own as an exercise in understanding the other guy's argument.  I see that at least some people here get that, and as such it's a breath of fresh O2 compared to other sites which mainly consist of fawning sycophants (yo Karl, you reading this?).

Take it for what it is.  If it doesn't work for you, move on.  Nobody's got a gun to your head.

Mon, 01/20/2014 - 16:24 | Link to Comment SilverIsKing
SilverIsKing's picture

In the several years I've been a ZHer, I haven't seen an opinion of ZH.

There are facts and contributions from other sources but the one thing ZH hasn't give us is their opinion.

Peter seems like a real douche. That's not a ZH opinion either. It's all mine.

Mon, 01/20/2014 - 17:35 | Link to Comment FreeMktFisherMN
FreeMktFisherMN's picture

It s important to be aware of how much of a Potemkin village this whole 'recovery' is. Look at the latest Nfp; that drop in unempl due to shrinking labor force let alone the quality of jobs these are tells of what is going on. I personally don't view wealth as locked in until it is physical metals in my possession. Finance is all group think modern portfolio theory risk free rate bs that never tells of how great of lengths it is taking to keep bond prices so high via qe and Chinese importing inflation. They think they know how to account for risk and they simply don't. Better to be prepared way early than a moment late I say

Tue, 01/21/2014 - 03:30 | Link to Comment matrix2012
matrix2012's picture

"'Never try to time the market'.... Better a month early than a second too late!"

Mon, 01/20/2014 - 15:49 | Link to Comment flapdoodle
flapdoodle's picture

ZH is a necessary antidote to MSM/Govmint B.S. Only zombies take ANYTHING at face value - we must all do our own due dilligence before acting on any information we get.

There is no free lunch, from ZH or Cramer, but I'll take ZH as being much closer to the truth...

Mon, 01/20/2014 - 16:01 | Link to Comment fonzannoon
fonzannoon's picture

Oh come on...almost every site out there has suffered from the yahoo financialization of the internet. anyone who does not thing this place has escaped it is crazy.

Mon, 01/20/2014 - 16:29 | Link to Comment ebear
ebear's picture

When the concerns of advertisers start to dictate content around here,  I'm gone.

Until then, someone's gotta pay the freight.

Or were you expecting a Free Lunch?

Mon, 01/20/2014 - 16:33 | Link to Comment fonzannoon
fonzannoon's picture

apparently you are one of the ones who missed the transition. It is what it is, and I am not saying I blame anyone. I probably would have done the same thing. But it already happened. 

Mon, 01/20/2014 - 17:00 | Link to Comment ebear
ebear's picture

As a poster I go back 2 years.  As a reader, at least twice as far.  These changes took place before that then?  I see more ads now, but so what?  Nobody works for free.  Or are you saying the advertisers DO dictate content (as in the MSM)?  If so, I haven't seen it.

Mon, 01/20/2014 - 18:11 | Link to Comment earnyermoney
earnyermoney's picture

All of the PC warnings were posted around the time ZH was bought by Mickey Mouse. Check the small print at the bottom of the page.

Tue, 01/21/2014 - 03:44 | Link to Comment matrix2012
matrix2012's picture

Among other thing, this one is relatively new at ZH (it's dated May 2013)...

and it already costed dearly upon Francis_Sawyer for pointing out his fingers too often and shouting out too loud... so members beware

http://www.zerohedge.com/help/notice-racism

 

And perhaps this phrase as well "...Zero Hedge is intended for Mature Audiences." :-) Good it makes no ref about Adult :-) lol

Mon, 01/20/2014 - 18:27 | Link to Comment negative rates
negative rates's picture

You mean those backwoods country yahoo's? All losers my friend.

Mon, 01/20/2014 - 16:01 | Link to Comment superflex
superflex's picture

So ZH owes me an apology for suggesting the equities market is ripe for a crash?

Nice, I guess all the MSM sites should offer up an apology to the entire world for the shit sandwich they served up on a silver platter labeled Barack Hussein Obama.

Motherucking smartest man in the world, a constitutional scholar and all around great guy.

Mon, 01/20/2014 - 16:54 | Link to Comment mick_richfield
mick_richfield's picture

So your idea of sober wisdom is to say "the tsunami hasn't struck yet, so all those doomsayers were wrong and we shouldn't have spent so much time preparing." ?

Seriously?  Is that the kind of reasoning they teach in the public schools over there now?

 

Mon, 01/20/2014 - 17:21 | Link to Comment James
James's picture

Peter, You need to look at the ZeroHedge Disclaimer

http://www.zerohedge.com/help/disclaimer

Mon, 01/20/2014 - 18:16 | Link to Comment earnyermoney
earnyermoney's picture

"One day ZH will get it right." The moment the FED removes the monthly Heroin injections in the market.

"let’s be frank, it has  screwed its following more keenly than the muppets who follow Goldman Sachs."  I've been reading ZH for 4+ years. Informed on PigMen corruption and fraud, yes. Screwed? Hardly.

Mon, 01/20/2014 - 15:22 | Link to Comment Confundido
Confundido's picture

The chart on reserve currency status is MISLEADING. Why? Except for the USD, all the previous reserve currencies were simply certificates on gold. Therefore, they could never enjoy the overconsumption levels enjoyed by the USA and there was really no advantage in being the reserve currency. A reserve currency is that which is backed by the issuer's credit and is used by other countries to expand their money supply. None of the other previous so called reserve currencies were backed by the credit of their countries, but by the stocks of gold backing them. If their navies were relevant, that is simply a correlated fact. The truth is that their navies only protected their gold, but they never enjoyed levered consumption levels.

Mon, 01/20/2014 - 19:15 | Link to Comment mendolover
mendolover's picture

Finally back to our regularly scheduled programming.  Isn't there anyone else in that ME region that needs to be forced to stop enriching uranium?

Tue, 01/21/2014 - 03:11 | Link to Comment matrix2012
matrix2012's picture

Confundido

You really spot on the chart drawback, just be aware of your post.

 

The right chart should show as below:

http://dont-tread-on.me/wp-content/uploads/2013/10/Zerohedge-gold-Reserve-Currency.png

Mon, 01/20/2014 - 15:22 | Link to Comment BillyTheBlade
BillyTheBlade's picture

Meant to read "Oil for Golds" not "goods". There I fixed it.

Mon, 01/20/2014 - 15:23 | Link to Comment Al Huxley
Al Huxley's picture

Losing that petrodollar status is gonna be a real bitch.  Hard to run those massive deficits without reserve currency status (Japan self funded for most of their run, not applicable here, I don't think...)

Mon, 01/20/2014 - 15:54 | Link to Comment TaperProof
TaperProof's picture

It will now be the WAR DOLLAR, currency backed only by war and death.

Mon, 01/20/2014 - 15:27 | Link to Comment buzzsaw99
buzzsaw99's picture

lindsey graham cracka, what a joke.

Mon, 01/20/2014 - 15:28 | Link to Comment Joe A
Joe A's picture

Putin does it again and the year has only just started.

Mon, 01/20/2014 - 15:31 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Vlad the Impaler.

He wrestle Black Bear for living room rug.

Mon, 01/20/2014 - 17:48 | Link to Comment Leaf of Tree
Leaf of Tree's picture

Vlad the Impaler was Romanian not Russian like Putin.

Putin is a pussy compared to Vlad Tepes.

Mon, 01/20/2014 - 15:31 | Link to Comment Laddie
Laddie's picture

Iran hawks in Washington who are keen to seen the November agreement collapse.

AIPAC OWNS the US House and Senate, and what they want, they invariably get, so look for TROUBLE down the line and the sheeple will graze right up until the end...

Both parties, Democrat and Republican are firmly in the grasp of the LOBBY. There isn't anyone willing to stop this. They've all sold out.

Mon, 01/20/2014 - 15:35 | Link to Comment TruthInSunshine
TruthInSunshine's picture

This would be correct.

AIPAC has given the POTUS & his Cabinet a severe spanking behind closed doors, and they're threatening to cut off funds for any non-compliant incumbent in the face of Congressional mid-term elections.

'The Lobby' is getting busy.

Mon, 01/20/2014 - 16:01 | Link to Comment seek
seek's picture

You could also interpret "busy" as desperate. When they tried to make the Syrian war happen, most members of congress saw call volumes 100:1 against, and were getting calls from people in their district they'd never heard from before at record volumes, e.g., the sheep were awake and pissed off. They (rightly) recognized the lobby's money is useless without an easily won election, and that money will disappear the moment they're out of office.

This was the only time in my memory that this particular lobby didn't get what they wanted -- and it happened because of the electoral base, not because congress suddenly got a backbone.

Mon, 01/20/2014 - 17:35 | Link to Comment Tinky
Tinky's picture

And the likelihood of another false flag spiked dramatically as a result.

Mon, 01/20/2014 - 15:34 | Link to Comment Mi Naem
Mi Naem's picture

"could trigger new US sanctions"

I know, we could keep our athletes home from the Olympics.  That'll show them pesky Russians. 

Mon, 01/20/2014 - 15:34 | Link to Comment orangegeek
orangegeek's picture

Lots of talk about removing US Dollar from reserve status:

 

Here's the reality of doing this:

 

http://bullandbearmash.com/about/usd/

Mon, 01/20/2014 - 15:42 | Link to Comment Zymurguy
Zymurguy's picture

Putin FTW (again)

Mon, 01/20/2014 - 15:46 | Link to Comment q99x2
q99x2's picture

Good news.

Mon, 01/20/2014 - 15:46 | Link to Comment gwar5
gwar5's picture

We already know we are fucking toast. But whoever is really in charge in the West is not even trying to land butter side up.

 

Mon, 01/20/2014 - 16:03 | Link to Comment seek
seek's picture

Sure they are -- for them. The last five years has been a Fed-funded butter-side-up for those with assets. I'm quite sure those at the top have used the gains to fund some pretty nice toast-holders.

Mon, 01/20/2014 - 16:15 | Link to Comment gwar5
gwar5's picture

Oh I know. It's just that the sabotage and destruction is just completely in our faces. They are taunting the masses to revolt so they can open fire.

 

 

Mon, 01/20/2014 - 15:50 | Link to Comment TaperProof
TaperProof's picture

Reserve currency, whats that?

Mon, 01/20/2014 - 15:51 | Link to Comment Seasmoke
Seasmoke's picture

SPEAK THE TRUTH BROTHER NATHAENEL !!!

 

https://www.youtube.com/watch?v=mpJmk7Q_vw4

Mon, 01/20/2014 - 16:01 | Link to Comment NoWayJose
NoWayJose's picture

An advisor overheard at the White House - "Oh, those nathsty Russians.  This will mean even more oil being pumped out of the ground in Iran.  Just think of all the nathsty environmental damage and pollution that will cause.  Iran will have more of those nathsty ugly oil wells that migratory birds will bump in to and die.  And if that oil gets turned into diesel or gasoline, oh my, that would certainly tip us over the point of no return for global warming.  The Russains don't have our high CAFE standards nor do they have pollution controls on their vehicles.  Mr. President, you have to stop those nathsty Russians and Iranians."

Mon, 01/20/2014 - 16:05 | Link to Comment MrTouchdown
MrTouchdown's picture

We have a pussy with a drone in the white house. Why not snub us?

Mon, 01/20/2014 - 16:09 | Link to Comment PrecipiceWatching
PrecipiceWatching's picture

Affirmative Action, white-guilt empowered, RaceMarxist Pussy to be exact, sir.

Mon, 01/20/2014 - 16:16 | Link to Comment juicemoney
juicemoney's picture

Team America World Police.... forcing everybody to use Petrodollars since 1975!

 

http://www.youtube.com/watch?v=YZdJRDpLHbw

Mon, 01/20/2014 - 16:23 | Link to Comment Blazed
Blazed's picture

John Kohn(Kerry) can take a long walk off a short pier!

Mon, 01/20/2014 - 16:56 | Link to Comment Snoopy the Economist
Snoopy the Economist's picture

Doesn't russia have enough oil? Or can they just get a super deal on it from iran and in doing so piss off US?

Mon, 01/20/2014 - 17:04 | Link to Comment Winston of Oceania
Winston of Oceania's picture

Iranian oil is sulfur rich and Russia has some new refineries built along with BP to refine it. Betcha they are in for a slice of the swap too...

Mon, 01/20/2014 - 17:12 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

and remember, nothing lasts forever...

 

But you are neglecting one key fact; this time is different.

Mon, 01/20/2014 - 17:40 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

Anybody tracking these?...

From the folks at Langley that brought you "Asymmetric Warfare for Dummies"!

Looks like the Anglo-American banking establishment is doing everything in it's power to not only mess with Russia's good time in managing their Winter Olympic games but it's also screwing with it's next door neighbor again in as many weeks implementing a violent "Orange Revolution" this time.

Think it's a safe bet that this new deal between Russia and Iran isn't making the money printers of the U.S. petro currency in D.C. too happy indeed?

http://www.washingtontimes.com/news/2014/jan/20/us-warships-deploy-for-sochi-olympics/

http://wakeupfromyourslumber.com/video/tom-sullivan/angry-riots-ukrainians-set-catapult-fire-police

Mon, 01/20/2014 - 19:35 | Link to Comment JailBanksters
JailBanksters's picture

So what if they hadn't of told the world about the deal, how would anyone know

 

Tue, 01/21/2014 - 02:28 | Link to Comment matrix2012
matrix2012's picture

an improved chart of "Reserve currency status does not last forever" taking into account the gold factor!

http://dont-tread-on.me/wp-content/uploads/2013/10/Zerohedge-gold-Reserve-Currency.png

 

Tue, 01/21/2014 - 09:17 | Link to Comment Duude
Duude's picture

" If the reports are true, such a deal would raise serious concerns as it would be inconsistent with the terms of the P5+1 agreement with Iran and could potentially trigger US sanctions," Caitlin Hayden, spokeswoman for the White House National Security Council, told Reuters."

 

Funniest thing I've read today. This administration has NO intention of applying, or reapplying any sanctions on Iran. The administration and Iran are one. There's a far greater likelihood the US will just spin the Russia-Iran deal as part of Obama's plan.

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