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

Tyler Durden's picture

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camoes's picture

Go east, bitchez

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...

magpie's picture

Like that "sell their junk" bit.

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

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.

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

magpie's picture

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

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.

Doyle Hargraves's picture

 

We r no letting u not use our dollar.

expect our bombs to fall soon.

signed ur masters...

zorba THE GREEK's picture

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

reader2010's picture

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

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.

Bastiat's picture

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

 

. . .and all the children are above average.

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.

infinity8's picture

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

francis_sawyer's picture

recalculating... recalculating...

IQ now 119.9 (after that comment)...

 

malikai's picture

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

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.

cosmictrainwreck's picture

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

SheepDog-One's picture

LOL Hamy good one! So funny.

Dugald's picture
  • What the hell are you smoking cobber?....
Lord Koos's picture

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

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 :)

 

 

 

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.

Hearst's picture

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

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.

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.

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?

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.

New_Meat's picture

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

- Ned

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 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

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.

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. 

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.

francis_sawyer's picture

underwear?

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

Short WAL-MART...

sun tzu's picture

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

ciscokid's picture

He who holds the biggest stick rules.

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.

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.

Negro Primero's picture

...don't worry!

 

 


 


 

 

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.