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Iran Gold Imports From Turkey Surge To $8 Billion YTD As Gold Increasingly Used As Currency

Tyler Durden's picture




 

From GoldCore

Iran Gold Imports From Turkey Surge To $8 Billion YTD - $3.2 Billion Worth Of Bullion In Q2 2012

Today’s AM fix was USD 1,731.00, EUR 1,352.77 and GBP 1,081.33 per ounce.
Yesterday’s AM fix was USD 1,732.75, EUR 1,355.09 and GBP 1,082.63 per ounce.

Silver is trading at $33.57/oz, €26.36/oz and £21.02/oz. Platinum is trading at $1,602.75/oz, palladium at $668.20/oz and rhodium at $1,025/oz.

Gold fell $8.80 or 0.506% in New York yesterday and closed at $1,729.20. Silver closed in New York at $33.57 down 0.06%.


Cross Currency Table – (Bloomberg)

Gold inched higher on Tuesday as investors await the German ruling on the eurozone’s bailout fund and a possible US Fed decision on QE3. There are expectations of a pullback by market participants, including clients, but what tends to happen after break outs like this is that gold continues to surprise to the upside and buyers only buy with conviction after gold is at record highs in dollar terms and again making some headlines. 

0800 GMT tomorrow is the German constitutional court decision as to whether Germany can contribute to the European Financial Stability Mechanism.  

The court has already rejected a last bid by Peter Gauweiler to delay the case (because of Draghi’s pledge of unlimited funds to buy government bonds) and its decision tomorrow is crucial to the future of the euro and the eurozone.

If Germany does not ratify the ESM treaty, the ESM and other bailout measures may be thrown into chaos leading to considerable market volatility tomorrow. A no vote would likely see a considerable increase in risk aversion.

Last week, Mario Draghi announced the ECB was ready to buy unlimited quantities of short-term government bonds of nations signed up to rescues from the ESM or the temporary European Financial Stability Facility it is designed to replace.


XAU/EUR Currency Rate – (Bloomberg)

Gold has gained almost 7% in the past month on news of the ECB bond buying plans and hints from the US Fed minutes released saying that action would be taken to stimulate the US economy if necessary.  

Gold is increasingly attractive as a safe haven for investors as a hedge against inflation due to rampant money printing by central banks.


Gold USD Daily Rate – (Bloomberg)

Diversification into gold continues with gold holdings in exchange-traded products backed by gold rose to a record for the fifth straight session. The amount increased 6.3 metric tons, or 0.3 percent, to 2,480.43 tons.

Credit Suisse and Unicredit have joined JP Morgan, Goldman, UBS, Bank of America and other banks in revising upwards their gold forecasts.

Gold will advance to $1,775 an ounce in three months and $1,850 in 12 months, Credit Suisse Group said in a report which was picked up by Bloomberg.

UniCredit sees gold returning to $1,900/oz an ounce towards the end of 2012. 

UBS increased its near term precious metals prices on “strong” likelihood of QE3, given the poor payrolls report. UBS raised the 1 and 3 month gold price estimate to $1850/oz from $1700. Silver to $37/oz from $32/oz and $35/oz respectively previously

Central bank demand internationally continues and demand for gold in the increasingly volatile Middle East remains robust as seen in data from the Istanbul Gold Exchange.

It showed that Turkey’s gold imports were 11.3 metric tons last month alone. Silver imports were 6.7 tons, the data show. Much of these imports may be destined for Iran where imports have surged an astonishing 2,700% in just one year – from $21 million to $6.2 billion.

In the first seven months of this year, Turkey's exports to Iran have also skyrocketed to $8 billion, up from $2 billion in the same period last year. And it is widely believed that the major portion of the increase, which is $6 billion, stems from the export of gold.

There is speculation that the Iranian central bank is buying gold and that they may be accepting gold in payment for oil and gas in order to bypass western sanctions.


XAU/GBP Currency Rate – (Bloomberg)

Turkey is paying for the oil and natural gas it is importing from Iran in gold, Turkish opposition deputies have claimed, drawing attention to the enormous increase in Turkey's gold exports to Iran in 2012. 

“Gold is being used as an instrument for payment. Under the guise of exportation, gold is being sent to Iran in exchange for oil,” Sinan Aygün, a deputy from the Republican People's Party (CHP), has told Turkish daily Today's Zaman.

Iranian people, encouraged by the state are also buying large quantities of gold and saving in gold in order to protect against inflation and the devaluation of the Iranian real.

Turkey's total gold and precious stone exports have amounted in the first seven months of 2012 to nearly $8.9 billion, while the figure was only $1.8 billion in the same period last year.  Some $3.2 billion of Turkey’s $4.4 billion of gold sales to Iran in the first half of the year were in bullion form.

Iranians purchased $4.8 billion worth of gold in 2012's second quarter, up from roughly $1 billion in the first quarter of the year. 

Iran appears to be circumventing western sanctions in this way.

The rise marks the continuation of a gold buying spree that saw sales in the first half of 2012 grow more than eight fold over the first half of 2011.

The US is said to be uneasy about Iran's skyrocketing purchases of Turkey's gold and has been following the sales closely.

There are rumours that Iranians purchase Turkish gold via third parties in order not to be noticed and that they entrust the purchased gold to the Central Bank of Iran (CBI), again via third parties. 

The Central Bank of Iran supports the purchases to order to create an “economy of resistance” in the face of increasing sanctions from Western countries.

Iranians have turned to gold as a method of saving in the face of tightening Western sanctions.

People, companies and banks in Iran are buying gold as a safe haven against months of sanctions induced currency devaluation.

This trend looks set to continue and may even intensify if Israel attacks Iran in the coming months.

For breaking news and commentary on financial markets and gold, follow us on
Twitter.

NEWS

Gold Advances on Outlook for Further Stimulus at Fed Meeting - Bloomberg

Gold firms; investors eye Fed decision, German ruling
- Reuters

Gold Fields: South African miners strike spreads – Market Watch

Gold to hit $1,900 by early 2013: Commerzbank – Market Watch

COMMENTARY

The euro crisis is not over and is about to get interesting – The Telegraph

Fiscal cliff. Market crash. Depression: A way out – Market Watch

Euro optimism won’t last for long – Market Watch

ECB's willingness to act...is plainly not enough in itself to save the euro – The Telegraph

Roubini: Gold Is "Speculative Investment"; Have "Market Weighting" - Retuers

 

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Tue, 09/11/2012 - 08:04 | 2781121 Alpo for Granny
Alpo for Granny's picture

Barbaric Relic Bitchez!

Tue, 09/11/2012 - 08:08 | 2781127 GetZeeGold
GetZeeGold's picture

 

 

I only use Mastercard......I'm not a Barbarian.

 

Tue, 09/11/2012 - 08:16 | 2781149 malikai
malikai's picture

Well, that makes two things to gain from the invasion.

Tue, 09/11/2012 - 08:17 | 2781155 King_of_simpletons
King_of_simpletons's picture

Global Stock Markets are dealing with Manufactured Wall of Worries. The reality is the collapse has already happened.

Tue, 09/11/2012 - 08:20 | 2781159 GetZeeGold
GetZeeGold's picture

 

 

The reality is the collapse has already happened.

 

Well are you going to tell them.......or did you want me too?

 

Tue, 09/11/2012 - 08:46 | 2781228 ToNYC
ToNYC's picture

Indeed, the debris field is populating in slow motion. The US is playing checkers, but Iran plays chess.

As Salaam Aliekum. God is everywhere, catch the Spirit wholely when you can.

 

Tue, 09/11/2012 - 08:42 | 2781214 Colonel Klink
Colonel Klink's picture

You are if it's a Capital One Mastercard!

Tue, 09/11/2012 - 08:04 | 2781122 Chief_Illiniwek
Chief_Illiniwek's picture

Are the Iranians doing this just to spite Charlie Munger?

Tue, 09/11/2012 - 08:12 | 2781129 GetZeeGold
GetZeeGold's picture

 

 

Use the other fork for the salad Chuck....you freakin Hun!

 

Tue, 09/11/2012 - 08:06 | 2781124 quasimodo
quasimodo's picture

Say it isn't so Ethyl

Dolla 4eva BABEEE!!!!

Tue, 09/11/2012 - 08:06 | 2781125 buzzsaw99
buzzsaw99's picture

they aren't really buying it if they aren't using clownbux. [/sarc]

Tue, 09/11/2012 - 08:10 | 2781132 CrawdadMan
CrawdadMan's picture

that does bode well for Bernanke and his friendsl.

Tue, 09/11/2012 - 08:10 | 2781135 LongSoupLine
LongSoupLine's picture

Very stupid to exchange gold when they can use the iPhone5 coming out today.

Tue, 09/11/2012 - 08:12 | 2781137 crusty curmudgeon
crusty curmudgeon's picture

Some really smart people are saying the dollar is not in jeopardy of losing its reserve status.  I think they are blinded by the past 40 years.  It's simply a matter of when, not if, and I'm beginning to think it's not far off.

Tue, 09/11/2012 - 08:27 | 2781175 Ace Ventura
Ace Ventura's picture

+1  I've lost count of how many otherwise intelligent people are utterly convinced that the dollar will always be the reserve currency. The reasons are many, typically such as:

-when other currencies drop, everyone runs to the dollar

-much of global economic transactions are conducted in dollars

-chinese need a strong dollar so we'll buy more of their plastic trinkets

Etc, etc, etc. All of the above is temporary comfort at best. The real key is the petro-dollar. Once that gets sufficiently undermined/circumvented.....look out.

Tue, 09/11/2012 - 08:55 | 2781255 crusty curmudgeon
crusty curmudgeon's picture

They also say there isn't enough of any other currency.  Now isn't that "ironical"?

Tue, 09/11/2012 - 08:58 | 2781262 ATM
ATM's picture

Scott Minerd at Guggenheim put out one of the best pieces on how he views the Dollar/Fed/Gold recently.

 

http://guggenheimpartners.com/Perspectives/Media/The-Faustian-Bargain

 

I'd suggest anyone interested in the views of one of the few money mangers who has been almost exactly right in his macro views take a short read.

Tue, 09/11/2012 - 08:44 | 2781219 Colonel Klink
Colonel Klink's picture

And that's the moment when all the inflation we've been exporting comes rushing back onto our shores!

MAN there's gonna be A LOT of pissed off surprised people!

Tue, 09/11/2012 - 08:15 | 2781146 Vincent Vega
Vincent Vega's picture

Iran better be careful or they may be declared a terrorist nation and subject themselves to all kinds of sanctions. <sarc>

Tue, 09/11/2012 - 08:58 | 2781264 ATM
ATM's picture

sanctions = smart bombs right?

Tue, 09/11/2012 - 09:42 | 2781423 Vincent Vega
Vincent Vega's picture

Ask Hosni Mubarak or Saddam Hussein.

Tue, 09/11/2012 - 08:15 | 2781148 the not so migh...
the not so mighty maximiza's picture

So huh i guess the Iranians don't like the US dollar.

Tue, 09/11/2012 - 08:26 | 2781169 GetZeeGold
GetZeeGold's picture

 

 

Those cats don't like much of anything.

 

Tue, 09/11/2012 - 08:16 | 2781151 apberusdisvet
apberusdisvet's picture

When the vaults at the COMEX, LBMA are discovered empty, will they then be used for a righteous purpose; i.e. bankster dungeons, complete with the rack?

Tue, 09/11/2012 - 08:25 | 2781166 malikai
malikai's picture

Reminds me of that vault scene from Harlem Nights.

Take short little breaths.

Tue, 09/11/2012 - 09:30 | 2781390 oddjob
oddjob's picture

Still waiting for your massive Gold correction $50 ago.

Tue, 09/11/2012 - 10:03 | 2781497 malikai
malikai's picture

Would you like a refund?

Tue, 09/11/2012 - 10:21 | 2781575 oddjob
oddjob's picture

Accountability is free.

Tue, 09/11/2012 - 11:05 | 2781776 malikai
malikai's picture

So is a 'Beta Program'.

Tue, 09/11/2012 - 08:45 | 2781224 Colonel Klink
Colonel Klink's picture

Don't forget the Guillotine!

Tue, 09/11/2012 - 08:20 | 2781158 NoField5
NoField5's picture

Maybe the Chinese are doing the same thing?

Tue, 09/11/2012 - 08:50 | 2781240 epwpixieq-1
epwpixieq-1's picture

No. They are quite smart to pay with their own currency than with real gold. At the end there are a lot more trees, and can be grown also, than gold.

Tue, 09/11/2012 - 08:22 | 2781161 Nacho Libre III
Nacho Libre III's picture

Then chairman Bernanke should go ahead and yank those useless usd swaps that were all the rage with the banking universe a few month ago. Seems like they're pretty useless.

Tue, 09/11/2012 - 08:26 | 2781164 falak pema
falak pema's picture

In days of old when Ottoman knights were bold there are stories told of Ottomans beating the shit out of Safavid shia kings in name of Sunni Caliphat.

Then came Ottoman decadence and western resurgence since nation state days and birth of entrepreneurial capitalism fed on Renaissance (Erasmus/Gutenburg), and scientific (Galileo/Newton) Western civilization teats that flowered into Enlightenment and industrial age.

Islamic decadence over three centuries has led to current occupation of Oil patch by the West after the demise of Ottomans.

If in the coming decade the new Ottomans and the new Safavids abandon their age old rivalry fed on the two faces of Muslim God, and concentrate more on secular progress, we could see emerge an alliance between Istanbul and Tehran that could become a boulevard for regional Renaissance. Given that the Arab nation is now totally decimated in obscurantist and oligarchy imposed gridlock run from DC, via royal surrogates ensconsed in feudalista castles and tiny nation states full of petrodollars. 

That would be a game changer from inside the regional box; Aladdin rising from the Thousand and One nights to claim the people's due! Turkey and Iran are two nations with a past.

Its necessity that stays the mother of invention. The more the top down imperial repression goes viral the more the bottom up regional fervour for new beginnings becomes inevitable. 

Watch out, first world. 

Tue, 09/11/2012 - 08:49 | 2781238 helping_friendl...
helping_friendly_book's picture

It will never happen. Thinking Twelvers and Sunni will collaborate is like asking the Pope to share the Vatican with the Presbyterians.

Watch the news lately?

Assad, a Shi'te leader, is being attacked by Sunnis.

10 out of 12 Decendants of Muhhamud, which form the basis of the Twelver, Shia, branch of Islam were poisoned by the Caliphate rulers i.e. Sunnis.

I don't see a reconciliation any time soon. 

Tue, 09/11/2012 - 09:01 | 2781270 falak pema
falak pema's picture

Assad is alawite, not shia.

Nasser, Mossadegh and Ataturk were secular. It needs a strong leader to start.

If Turkey and Iran fall back further into obscurantism and religious intolerance, they will condemn region further into regression. 

As it is from Paki to Morocco and beyond the Muslim world is heading back to muslim dark ages. 

Twelvers and Sunni have to shed their outer ideological skins if they want to survive. The nation first has to become rule sometime along this path. 

How can five hundred million moslems continue to grovel in this obscurantism; and for how long?

 

Tue, 09/11/2012 - 08:26 | 2781167 d edwards
d edwards's picture

Wait, wait! We all know gold isn't currency-right? wrong!

Every freaking country in the world is stockpiling gold-Russia, China, Iran-somethings coming and it ain't good!

Tue, 09/11/2012 - 08:26 | 2781168 JPMorgan
JPMorgan's picture

You mean to say Iran have a shit load of oil and gold... so when do we invade?

Obama says he just needs to dupe the public into a second term then it's game on.

Tue, 09/11/2012 - 08:29 | 2781183 Zero Govt
Zero Govt's picture

"The rise marks the continuation of a gold buying spree that saw sales in the first half of 2012 grow more than eight fold over the first half of 2011."

Meanwhile the Gold price has tanked during those same 6 months 

Tue, 09/11/2012 - 08:30 | 2781189 No Euros please...
No Euros please we&#039;re British's picture

But, but, but I don't understand, gold isn't money.

Tue, 09/11/2012 - 08:34 | 2781195 supermaxedout
supermaxedout's picture

Things are easy to understand.

Iran does not accept US Dollars anymore as payment for its oil since 2009. But Turkey needs the oil for its economy.  So Turkey is buying with its US Dollars usually used for the oil purchase gold and pays then its oil bill in Iran.

This shows also how deeply the US and its Nato ally Turkey are appart.

 

Tue, 09/11/2012 - 09:02 | 2781274 ATM
ATM's picture

Not really. It only means that for Turkey it's oil supply is most readily accessible from it's oil rich neighbor - Iran. It's a logistical problem for the Turks more than anything else. 

Tue, 09/11/2012 - 09:54 | 2781470 supermaxedout
supermaxedout's picture

But ther is lots of oil in Northern Iraq which is called Kurdistan. Exxon, Chevron. Total etc made huge contracts with the Kurds regarding the oil in North Iraq (Kurdistan).  So there is lots of oil very close to Turkey, stable under US military control. This oil is priced in US Dollars but the Turks do not want to buy it because it would enrich the Kurds thus building up Kurdish military power, thus threatening Turkey in its bone. 

Tue, 09/11/2012 - 09:04 | 2781284 Freewheelin Franklin
Freewheelin Franklin's picture

Double coincidence of wants?

Tue, 09/11/2012 - 08:40 | 2781200 helping_friendl...
helping_friendly_book's picture

Old news!!!! We have known about the gold/oil trade for many months. They will pump it and someone, with some currency, will buy it. I don't think it is worth the USA going to war?

Oh....uhhmmm....but, that was not the reaction when Saddam started pricing oil in Euros. We hung him and filmed it.

Petro-gold just doesn't have the same ring as petro-dollar. The Treasury/Pentagon will, most certainly, launch an all out attack if Iran dare price oil in a currency other than the USD.

You must see, folks, these troulbles in the ME have nothing to do with fission or Zionism or Islam.

It is a matter of pricing mechanism. The "team" only prices oil in US Petro-Dollars.

Any other pricing mechanism will make Treasury Notes worthless and cause all out, total, war.

There will be a false flag pretext soon. Probably about some threat to Saudi Arabia or theat to that stupid oil platform owned by Iraq. I give it another week until an all out strike on Tehran. 

First we cut their access to Dollars, through sanctions, then attack them for pricing oil in another medium.

By the way:

It is a fact that we sold and delivered to the Iranians, right before the Islamic Revolution, the exact same printing presses the US Treasury uses to print Dollars. Those presses caused the Treasury to put all those nifty security features on our currency. The Iranians were printing Frannklins like they where going out of style.

Tue, 09/11/2012 - 08:37 | 2781204 youngman
youngman's picture

All I know is a lot of countries are buying gold.....I do not think anyone is selling...at some time there will be a paper squeeze...another crisis...that is when the Politicians will bail out the paper holders...again...

Tue, 09/11/2012 - 08:38 | 2781205 gbresnahan
gbresnahan's picture

Watch the Obama administration call for confiscation of all gold in the name of national security...

Tue, 09/11/2012 - 08:49 | 2781229 Colonel Klink
Colonel Klink's picture

And let's see how many SUCKERS fall for it.  Or maybe I should have said Zuckers.  Oh wait, they'll have it sewn into their clothes.

Tue, 09/11/2012 - 08:44 | 2781223 JOYFUL
JOYFUL's picture

It's acutely ironical that the huge downturn in Turkey's exports to the EU, and resulting balance of payments problem(2nd only to the USA)has been somewhat offset by the helpful embargo on Iran and the necessity of gold for oil trade...if the Merikans push too hard on that issue, this economy will be ripe to go the way of the rest of the Club Med states...(could that, in fact even be in the playbook?)

the Turks are in a vice, with Zato on the one hand pushing them into a confrontation with Syria's secular leadership that can only backfire in a big way domestically, while their neo-Ottoman dreams of a resurgent Sunni middle east under their direction fade into a morass of Saudi-sponsored(tel aviv directed\CIA produced)Al Qaeda mercenaries looking to declare Sharia Law and purposely discredit all Muslims with their PNAC inspired gangster state program...

only by coming to grips with recognizing their considerable debt to Persian ascendancy in the arenas of culture, business, and scientific innovation could Ankara hope to smooth the trouble waters it has been beating up with the silly, self-defeating rhetoric coming out of the leaderships' mouths...

but humility has never been a strong suit of the Turkish persona.

Tue, 09/11/2012 - 08:48 | 2781234 philosophers bone
philosophers bone's picture

Follow the Yellow Brick Parking Lot

Tue, 09/11/2012 - 08:59 | 2781267 Freewheelin Franklin
Freewheelin Franklin's picture

 

WHAT???? THEY ARE SELLING THEIR OIL FOR GOLD AND BYPASSING OUR SANCTIONS???

BOMB THEM!!!

Tue, 09/11/2012 - 11:16 | 2781832 Overflow-admin
Overflow-admin's picture

And Get Zee Gold!

Tue, 09/11/2012 - 09:01 | 2781271 ivars
ivars's picture

Check out new log-periodic prediction for silver next few days:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=2440#p39469

The previous worked very well. Missed the top of 34 by 0,11 USD ( I predicted higher price, 34,11)

Tue, 09/11/2012 - 09:05 | 2781290 Lucius Corneliu...
Lucius Cornelius Sulla's picture

History will mark the end of dollar hegemony when the USG attempted to lock their sworn enemy out of global markets vis a vie their monopoly on commodity settlements in dollars.  The world rediscovered gold as a medium of exchange, knowing that it cannot be manipulated by politicians and bankers or "locked out" of international trade settlements.  Gold, again, became the international currency.

Tue, 09/11/2012 - 13:23 | 2782328 atomicwasted
atomicwasted's picture

Oh no, don't throw me in the briar patch of not being allowed to use the USD!

Tue, 09/11/2012 - 09:10 | 2781312 Dr. Gonzo
Dr. Gonzo's picture

They should trust their people and issue gold coins to them as their official money. Could you imagine how hard it would be for the U.S. and Israel to steal if it was all dispursesed into the populations? It would proabably make their economy boom too. That would infuriate the West. It might even be a causation for war.

Tue, 09/11/2012 - 09:17 | 2781344 Canadian Dirtlump
Canadian Dirtlump's picture

seeing them importing silver reminds me of the ill fated canoe trip that saw me lose all my tubes... be careful boys.

Tue, 09/11/2012 - 09:18 | 2781345 BigInJapan
BigInJapan's picture

B b b but Turkey are member of N n n NATO...

How could they?

Tue, 09/11/2012 - 11:15 | 2781829 Canadian Dirtlump
Canadian Dirtlump's picture

This is further proof of Erdogan of Turkey being fucking nuts.

 

He supports Iran, hates Israel, is part of Nato, and is marshalling terrorists to topple Assad in Syria, and Ally of Iran whom he supports.

 

 

Tue, 09/11/2012 - 09:45 | 2781366 Anasteus
Anasteus's picture

It's funny how JP Morgan, Goldman, UBS, Bank of America and other banks are revising upwards their gold forecasts, while at same time being involved in massive artificial price suppression intended to scare and discourage investors. A double shell game propelled by mainstream media. I'm wondering, that despite the fact the banks have been caught many times as deliberately cheating, lying, manipulating or falsifying data, humiliating their clients (Goldman) or were legally convicted of frauds, they are still being given a leading voice on financial matters as though as nothing has happened. In normal world every mainstream media would get rid of any mention of a bank with such reputation, let alone publish its 'opinions', 'analyses', 'forecasts', or 'recommendations'.

Tue, 09/11/2012 - 09:41 | 2781422 Mudja
Mudja's picture

Its a bird! Its a plane! It's Charlie Munger falling to earth with a barberous relic in his ass!

Tue, 09/11/2012 - 09:45 | 2781434 bushwarcrime
bushwarcrime's picture

So Iran is basically selling 200,000 barrels per day if the 3.2bil figure for bullion imported from Turkey was for oil payments are to believed.  That's well off the 4,000,000 barrels per day before sanctions.  

Tue, 09/11/2012 - 09:57 | 2781480 BigInJapan
BigInJapan's picture

Uhh... China... and uhh... India...

Tue, 09/11/2012 - 10:45 | 2781694 supermaxedout
supermaxedout's picture

Watch the Obama administration call for confiscation of all gold in the name of national security...

"The US is said to be uneasy about Iran's skyrocketing purchases of Turkey's gold and has been following the sales closely."

And there is the question who else is buying oil for gold from Iran ?, South Africa ? Japan?, who else

The oil is cheap when you pay in gold. Obviously the Iranians are giving a deep discount compared to US Petro Dollar prices.  Just change your Dollars into gold. Pay with this gold and get a 50% discount (should be no problem for Iran) on the Brent price. That makes the thing really interesting for many economies around the world.

And what does that mean: Simply put, the Iranians are sucking out gold of the US hemnisphere and are adding up gold to the ever growing Chinese, Russian and Indian gold reserves.

And as we know a country needs two things to be rich and really powerful: Guns and gold. Unfortunately the US has only the guns left while the gold is slipping out of its hands slowly but at an ever increasing speed. The US have the most guns but instead gold they have only montains of debt. The Mount Everest of debt.  The Himalaya of debt.

Oil for gold is:

a) undermining the value of the US Dollar - the same amount in gold buys twice the amount of oil . This kills the US power as the price fixer for oil.

b) showing that the US is toothless when it comes to Iran. Imagine Iran does not accept US Dollars anymore since 2009!!      There was plenty of time for the US to do something.  Iran is under the Russian and Chinese security umbrella. My guess is, that Russia has already deployed nukes in Iran. Any attack on Iran is regarded by the Chinese and the Russians as an attack on themselves.   This is in my opinion also the reason why the US is always presenting Israel as trigger happy as fas as Iran is concerned.  The US can not do anything without bringing nuclear catastrophe to the whole world including US.   So they are trying to play the crazy man Netanahu card.

c) makes it necessary that the US succeeds in Syria in order to funnel its "US Dollar oil" from Kurdistan to Europes markets. If the US does not succeed in this undertaking then it might soon happen, that the one or other energy starving European country starts to buy oil from Iran. Just like the Turks, via gold for half of the Brent price or so.  That could be like a damm break with the ultimate consequence that the US Dollar looses its value dramatically.

 

Tue, 09/11/2012 - 11:18 | 2781845 Herdee
Herdee's picture

Whether it was 911 or the present economic relationship with China,it seems that the U.S. Government is fast asleep to the economic destruction that is being done to its people.Iran is just the next domino to break the U.S. economic system and the theocracy running Iran continues to play its cards.Just look at what high oil prices are doing to the American people.It's literally taxing everyone to death in order to make every government in the middleeast filthy rich and make America uncompetitive.Ya,I know,TBoone Pickens is the enemy.Have faith in the useless crowd governing from Washington until the fiscal cliff hits at Christmas?

Tue, 09/11/2012 - 11:52 | 2781985 Ace Ventura
Ace Ventura's picture

Not to pick nits concerning your overall point, but if you think T. Boone gives two shakes of a rats ass about your access to cheap oil, you're buying into his scam. Also, check out his efforts at buying up controlling interests in large water sources around the country. The guy is a card-carrying member of the NWO.

 

Tue, 09/11/2012 - 11:31 | 2781904 FlyingPurpleShe...
FlyingPurpleSheepleEater's picture

Didn't Turkey "encourage" it's citizens to deposit their gold in the banks recently? Looks like it won't be there if they ever want to pull it back out again.

Tue, 09/11/2012 - 12:30 | 2782143 Inibo E. Exibo
Inibo E. Exibo's picture

Obviously Turkey is not democratic enough.  I'm sure USGov is preparing a lesson plan for them.

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