China And Iran To Bypass Dollar, Plan Oil Barter System, And A Deeper Dive Into The Iranian Oil Bourse

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Sun, 07/24/2011 - 15:02 | 1487916 camoes
camoes's picture

Go east, bitchez

Sun, 07/24/2011 - 15:59 | 1488142 narapoiddyslexia
narapoiddyslexia's picture

This isn't exactly the doomsday scenario its painted to be above. If you read the FT article, the Iranians are not delerious about the trade deal with China. Here is what one Iranian official was quoted as saying, in the FT article -

“Both China and India are happy to keep Iran’s money in their banks and try to get Iran involved in barter deals to sell their junk, or give yuan and rupees instead of hard currencies,” said one Iranian former official, on condition of anonymity. Iran had not yet accepted the alternatives, he added."

So the deal does not appear to even be done, yet. And even if it is, its a big disappointment for Iran. Why not get gold for oil?

'Cause no one will make that particular trade...

Sun, 07/24/2011 - 16:10 | 1488196 magpie
magpie's picture

Like that "sell their junk" bit.

Commodity exporters hold the cards for the rest of the century, i'm afraid.

Sun, 07/24/2011 - 16:15 | 1488220 TaxSlave
TaxSlave's picture

In which the traders re-discover that money evolved to overcome the inconvenience of barter.

Only the inconvenience of paper money could be more inconvenient than barter.

Sun, 07/24/2011 - 16:21 | 1488256 AldousHuxley
AldousHuxley's picture

Pirates and Emperors (from SchoolHouse Rock makers of How a Bill becomes a law) http://www.youtube.com/watch?v=mEO3RWnHb4E&feature=related

Sun, 07/24/2011 - 16:24 | 1488277 magpie
magpie's picture

Yes, but only depending on bilateral deals gets you into the poor house, a point even the Iranians understand.

Sun, 07/24/2011 - 18:20 | 1488756 Paladin en passant
Paladin en passant's picture

Correctomundo...what fool country would the Iranians trade their Chinese crap to in order to purchase goods their people actually want and can afford?  China's already sold that same crap to Iran's potential buyers.  I smell desperation in Terhan, the desperation of those ignorant of econ 101.

Sun, 07/24/2011 - 15:04 | 1487918 Doyle Hargraves
Doyle Hargraves's picture

 

We r no letting u not use our dollar.

expect our bombs to fall soon.

signed ur masters...

Sun, 07/24/2011 - 15:02 | 1487919 zorba THE GREEK
zorba THE GREEK's picture

I don't blame them. I have been bypassing the dollar for 11 years now using gold and silver. 

Sun, 07/24/2011 - 15:04 | 1487929 reader2010
reader2010's picture

Beijing has fired its first shot at Uncle Sam. The WWIII has already started quietly.

Sun, 07/24/2011 - 15:24 | 1487999 HamyWanger
HamyWanger's picture

Lol, what would the Chinese do? They are - simply put - poor and weak. 

In America, we have a very high-IQ (120+) and healthy population, solid principles and motivations, an incredibly strong economy (despite what all the doomers say), and high-grade equipment and technology. 

WWIII, if it happens, will only result in the complete annihilation of the Yellows.

Sun, 07/24/2011 - 15:28 | 1488026 Lord Welligton
Lord Welligton's picture

Must do better Hamy.

Sun, 07/24/2011 - 15:42 | 1488081 trampstamp
trampstamp's picture

All in due time Lord.

Sun, 07/24/2011 - 15:35 | 1488042 Bastiat
Bastiat's picture

"we have a very high-IQ (120+) and healthy population"

 

. . .and all the children are above average.

Sun, 07/24/2011 - 15:38 | 1488061 Kali
Kali's picture

Above average in obesity.  What is the military rejecting due to obesity again?  35%.  Don't even get me started on IQ.  American Exceptionalism?  Exceptionally stupid.

Sun, 07/24/2011 - 15:39 | 1488065 infinity8
infinity8's picture

Hahahahhahaa. . . yes! and they can all be whatever they want. . . brain surgeon, reality TV star - dare to dream brilliant babies!

Mon, 07/25/2011 - 13:43 | 1491136 Doyle Hargraves
Doyle Hargraves's picture

 

Yeah anything they want, BWAHAHAHAHA

http://www.youtube.com/watch?v=u8yoSAiwY18&feature=related

 

Sun, 07/24/2011 - 15:39 | 1488066 francis_sawyer
francis_sawyer's picture

recalculating... recalculating...

IQ now 119.9 (after that comment)...

 

Sun, 07/24/2011 - 15:43 | 1488082 malikai
malikai's picture

Glad to see you back Hamy. Don't worry, they'll figure out how to junk you soon enough.

Sun, 07/24/2011 - 15:50 | 1488102 IAmNotMark
IAmNotMark's picture

"solid principles and motivations"

I used to think that but I look at the crooks and shysters that are running and ruining our country and I no longer believe that is true. 

I think that almost every U.S. politician today would sell their mother, destroy the constitution, kill a million Iraqis, kill a billion asians...all to get re-elected.

Sun, 07/24/2011 - 16:07 | 1488183 cosmictrainwreck
cosmictrainwreck's picture

Hamy....muh Maaan! where you been?

Sun, 07/24/2011 - 17:17 | 1488486 SheepDog-One
SheepDog-One's picture

LOL Hamy good one! So funny.

Sun, 07/24/2011 - 17:31 | 1488552 reader2010
reader2010's picture

Illusions. 

Mon, 07/25/2011 - 00:00 | 1489703 Dugald
Dugald's picture
  • What the hell are you smoking cobber?....
Mon, 07/25/2011 - 02:01 | 1489849 Lord Koos
Lord Koos's picture

Hamy, let us know when you come down from the crack you've been smoking.  

Mon, 07/25/2011 - 11:44 | 1490665 matrix2012
matrix2012's picture

 

just woke up from a long hibernation :D duh world, so chaotic it's now... better get back to a long sleep again :)

 

 

 

Sun, 07/24/2011 - 15:55 | 1488129 Djirk
Djirk's picture

I think the dollar issue is secondary, this is China saying fuck your embargoes, we are going to trade and support Iran. US driving global policy is now officially over.

The US embargoes on Iran are like swiss cheese, over 10,000 special permits have been issued to US companies to do biz there. Biggest US export to Iran is tobacco, chemical warfare.

Sun, 07/24/2011 - 16:18 | 1488237 Hearst
Hearst's picture

"And who will follow China next?"  Definetely Russia..

Sun, 07/24/2011 - 16:38 | 1488331 Djirk
Djirk's picture

senor Chavez too

Sun, 07/24/2011 - 15:04 | 1487930 Cognitive Dissonance
Cognitive Dissonance's picture

20 years from today this span of time, from 2007 to 2017 will be seen as the time when America came apart at the seams. And not quietly either.

Sun, 07/24/2011 - 15:27 | 1488021 Landrew
Landrew's picture

CD, I believe this decade of 07/17 will be noted as well. The global connected failures being propped up killing one of the most important cores of capitalism (failed business fails) will be the number one topic of economic classes and the primary driver in the creation of a different type of economic system based on something like thermodynamics.

Sun, 07/24/2011 - 15:37 | 1488053 RockyRacoon
RockyRacoon's picture

You are wise enough, CD, for me to trust your opinion.

I'm preparing accordingly.

As for the upcoming debt ceiling default, bring that sucker on.

Per Ron Paul's comment in the article:  We've defaulted 3 times in the past.

One more might be the charm?

Sun, 07/24/2011 - 15:05 | 1487933 DeadFred
DeadFred's picture

China is poised and in need of making a big power play. This could be part of it. Don't bet much based on the assumption China won't want to alienate the US.

Sun, 07/24/2011 - 18:22 | 1488765 New_Meat
New_Meat's picture

Dead: you bet that PRC is "poised and in need".  But consider TPMB http://thomaspmbarnett.com/

- Ned

Sun, 07/24/2011 - 15:06 | 1487936 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, big big news.  Iraq tried this and was invaded.  Will the same fate hold for Iran?  Who knows?  Not good news for the dollar as you so eloquently, as usual, described.

Tuco Benedicto Pacifico Juan Maria Ramirez

Sun, 07/24/2011 - 17:14 | 1488472 sun tzu
sun tzu's picture

There aren't any troops left to invade Iran unless we reinstate the draft. Imagine trying to draft a bunch of inner city gangbanger to go to the desert and die. HAHAHA

Sun, 07/24/2011 - 17:41 | 1488582 irishlink
irishlink's picture

yea . Join  the dots and we now can see why so many are concerned with an Israeli move on Iran. The USA / Israel special relationship works both ways.

Sun, 07/24/2011 - 18:03 | 1488667 goldfish1
goldfish1's picture

Iran is not Iraq.

Sun, 07/24/2011 - 15:08 | 1487939 TideFighter
TideFighter's picture

Every time I pass a WalMart, I bi-pass China. My curiousity about what the markets are going to do tonight is killin' me. I snicker and think many ZH's are in the same boat. ZH is a great place to go when a storm is about to hit; best weather reports anywhere. 

Sun, 07/24/2011 - 15:44 | 1488084 trampstamp
trampstamp's picture

Not sure if you all have noticed, but Wamlart is starting to cary US made products. I guess underwear and socks is a start.

Sun, 07/24/2011 - 15:48 | 1488096 delacroix
delacroix's picture

food too

Sun, 07/24/2011 - 15:48 | 1488097 francis_sawyer
francis_sawyer's picture

underwear?

I'm guessing 'depends' would help their ebitda more...

Short WAL-MART...

Sun, 07/24/2011 - 17:16 | 1488480 sun tzu
sun tzu's picture

How about Target and Best Buy? Everything is made in China.

Sun, 07/24/2011 - 15:10 | 1487949 ciscokid
ciscokid's picture

He who holds the biggest stick rules.

Sun, 07/24/2011 - 15:13 | 1487957 snowball777
snowball777's picture

Only if he can swing it.

Sun, 07/24/2011 - 15:11 | 1487950 HungrySeagull
HungrySeagull's picture

We have our Artic/Canada Resources along with Shale in the middle of the USA as well as Coastal.

Iran is not going to be allowed to enrich at our expense. Russia will do well to reposition to become a major supplier to Europe off HER Artic resources.

Sun, 07/24/2011 - 15:24 | 1488002 anonnn
anonnn's picture

And then there's Denmark...Who knows what magnitudes of  resources lay under the Greenland ice?

At some point, exploration becomes feasible, folowed by development. Technology and desperation will combine at some point , probably as the desire to survive exposes the limits of profit-motive.

Sun, 07/24/2011 - 15:37 | 1488054 Negro Primero
Negro Primero's picture

...don't worry!

 

 


 


 

 

Sun, 07/24/2011 - 15:42 | 1488078 HungrySeagull
HungrySeagull's picture

I am well aware of the USSR Ambition to take the entire top of the artic.

We might have to fight Russia for it someday.

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