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Iran Moves Further To End Petrodollar, Announces Will Accept Payment In Gold Instead Of Dollars
Much has been spun in recent weeks to indicate that as a result of collapsing trade, Iran's economy is in shambles and that the financial embargo hoisted upon the country by the insolvent, pardon, developed world is working. We had a totally different perspective on things "A Very Different Take On The "Iran Barters Gold For Food" Story" in which we essentially said that Iran, with the complicity of major trading partners like China, India and Russia is preparing to phase out the petrodollar: a move which would be impossible if key bilateral trade partners would not agree to it. Gradually it appears this is increasingly the case following a just released Reuters report that "Iran will take payment from its trading partners in gold instead of dollars, the Iranian state news agency IRNA quoted the central bank governor as saying on Tuesday."
Via Reuters:
Iranian financial institutions have been hit by sanctions imposed by the United States and the European Union in an effort to force Tehran to halt its nuclear programme.
Significant difficulties in making dollar payments to Iranian banks have forced Iran's trading partners to look for alternative ways to settle transactions, including direct barter deals.
"In its trade transactions with other countries, Iran does not limit itself to the U.S. dollar, and the country can pay using its own currency," central bank governor Mahmoud Bahmani was quoted as saying. "If a country should so choose, it can pay in gold and we would accept that without any reservation."
The sanctions include a phased ban on importing oil from Iran, which EU member states are to implement by July.
China and India, two of the largest consumers of Iranian oil, have said they will continue imports, but Japan and Korea have announced cuts to quotas following pressure from the United States. As a result the value of Iran's rial has plummeted, pushing the price of goods sharply higher across the country.
And from the souce:
Governor of the Central Bank of Iran Mahmoud Bahmani says the country can trade in currencies other than the American dollar in its foreign transactions.
“Iran does not just work with the dollar in trade transactions and every country can pay in its own currency,” said Mahmoud Bahmani on Tuesday.
Bahmani added that Tehran could receive gold in its transactions instead of currency transfers.
In case a country is willing to pay for the price of its imports from Iran in gold, there is no problem in this respect, he noted.
According to Bahmani, Iran imports commodities from China and India in exchange for the countries’ currencies. Tehran’s move is aimed at bypassing the upcoming freeze on CBI’s assets and the oil embargo, which the European Union's foreign ministers agreed to impose on the Islamic Republic.
Now this would be great news for Greece which as previously reported had at times relied for more than 50% of its crude imports on Iran. There is just one problem: very soon the country will no longer have said gold in its possession, as part of the preapproved Greek bailout of Europe, the country's constitution would be changed to reflect that even its gold now is part of the bailout conditions, and European banks have a lien on it. Especially if said gold is located in the basement of the NY Fed where it most likely resides.
As for other countries, such as China which we are confident has been quietly stockpiling gold in the last few years, and will make a surprise announcement any day now, as it did back in 2009... that's a different matter entirely.
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indeed, they have the parody down to a T - persona, music, wit, - I love mockery of the music business from all angles. . .
here's a take of the "backstory" - from the "manager office"
"YOU'RE THE DICKHEAD"
http://www.youtube.com/watch?v=fwVoZ7awIt0&feature=related
we can all use a bit of humour today, as we see the obvious taking place. . .
catch you in a thread!
He'd use Bombs, duh...
loaves and fishes was my thought
This is too easy: the Holy Hand Grenade.
From what I hear ... Churches in the US are gearing up for support of a war with Iran. Gotta keep the people in line and on message. Why has nobody concluded that US mega churches are funded and organized by the CIA? We keep reading about CIA involvement across the world but what we fail to investigate is how the CIA is running affairs right here at home. Controlled churches are a propaganda ministries wet dream! Pay close attention at your next service(s). The message on persecuted Christians in Iran, the anti muslim propaganda and so on are going to be broadcast at a church in your area. Stay "tuned" and "plugged-in".
Didn't need to read any further
Oh no, please don't read any further. FYI I heard it with my own ears. Better now?
from what i hear, people who go to mega churches and actually listen to all the bullshit spewed by their christianist leaders are kind of morons.
a very simple solution to our collective idiocy would be to reinstitute the draft. let's see how many of our "tough" and "patriotic" americans will support our military adventures then.
RON PAUL 2012 MOTHERFUCKERS!
oh. the irony.
or stupid.
Do you mean to suggest that a large portion of them don't secretly (or not so secretly) relish the Fatherland's wars with all the misery and destruction these entail for other (usually brown) people - people who believe in the wrong god and hate us for our freedoms and are lurking around every corner waiting to mutilate your pets, rape your wife and daughters, enslave your sons, and behead you?
For fuck's sake they sign up to fight these wars for their paltry 30 pieces of silver and a healthy dose of PTSD. Then they vote for the next generation of neo-con chickenhawks so their kids can defend the homeland from the next crop of fabled enemies, ad infinitum.
What would J6P rather do? Down some brewskis and watch the game or read about how many third-world unfortunates - "collateral damage" about whom he is stricly incapable of giving even one shit - his government has murdered - with HIS money - to protect him from The Terrorists?
U look like a young Michael Jackson.
Shumone! Tee hee!
Uh oh. Iran invasion imminent.
Yup, Israel can STAND DOWN now, NATO will be in Iran soon enough.................................you must learn you do not mess with the Reserve Currency, or your shit gets blown away.
Iraq - invaded when Sadam tried to start selling oil in €s
Libya - invaded when Gaddafi introduced idea of gold-backed African Dinar
They tried to do it without ATOMIC energy.
I feel Iran do have that ENERGY. They have problem proving it legal.
Europe - Euro
Americas - Amero
Africa - Afro
Duncan - Yoyo
walk the dog. . .!
Barbaric Relic!
Krugman just enlisted in the Marine Corps.
He will be parachuted into Tehran to teach the Iranian mullahs the benefits of Keynesian money printing schemes and the dangers of sound money. :D
Krugman will have to shave his beard if he enters the armed forces and everyone who knows anything knows that the beard is the source for all the PhDs power.
I don't see him makin' it past the first 14 seconds of boot camp.
He will no doubt hide a jelly donut from the mess hall in his footlocker.
Blanket party.. Me first with a 10lb dumbbell, you guys can use bars of soap, pussies..
And then there was a big war.
yup and that's what WWIII will be fought over... Keynesian banksters vs. Real money sovereigns. Choose your sides bitches.
Which also means, unless you lost your pm's in a boat wreck, if your holding your a Keynesian turn coat and will be dealt with appropriately.
We have to play this like Jeopardy these days.
For all the tea in China ...
What would the world owe Iran if Iran manages to break the corrupting power of the Ponzi PetroDollar??
First time I've heard them mention gold specifically, no?
Well, some fool in Lybia tried this but I have completely forgotten who since the people overthrew the dictator there.
You meant Laybia of course.
You're such a cunning linguist Gene
Ah ha. I finally understand your avatar. Well done.
I'm the Limerick King of geneitalia jokes. Wait... um...
Had no idea you were also Italian.
Is that a close-up of Mandelbrot's wife?
redpill
First time I've heard them mention gold specifically, no?
Nope, they have brought this up before.
iPetrol for iBullion eh?
Free gold is coming whether unce Benny like's it or not.
That might be what they want. That is assuming there's actually gold and not rehypothecated IOU's down there.
This means war, bitchez!
Sad but true...
What, they aren't accepting iPads as payment?
Thats after March 7. I hope i am still alive. I have a doctors appointment.
http://www.marketwatch.com/story/apple-sets-event-for-march-7-new-ipad-e...
Will they accept Irish Punts, they will be back on the scene soon enough!
Ireland says NO!
Just for giggles, they could also recreate the drachma
Like anyone cares.
Did you say that, when Gaddafi declared he was considering accepting gold rather than Dollars for Libyan oil?
Yeah look at what we did to keep a country with a population of 6 million from using gold. Just think what we to make sure a population of 74 million doesn't go off the petro dollar.
Obviously they want gold instead of dollars, but nobody will pay them so. Not until it is demanded by oil producing States, and that is awhile off; we will need to see the Fiat Ponzi fall for that to happen.
But this is a sign of things to come.
This will not exactly GOLD. For example, china imports 100 ounce gold worth of oil from Iran, and Iran imports 100 ounce gold worth of sneaker from china. It is a matter of rate of exchange. Like 17 barrels of oil for an ounce of gold. That is the point where petro $ ends.
How about petro-coupons?
I heard Iran is doing a Groupon special. For every three barrels, the fourth one is half off.
Beter'n the Bernanke dollar sale, one for the price of two.
It's cool, GLD shares will suffice. I think...
If oblahblah wants to get re-elected he better come up with some petro-snap cards fast.
Heh heh wow it wont be long now till everything is set on its ear one morning.
Lord James of Blackheath $15,OOO,OOO,OOO,OOO FRAUD EXPOSED February 16 2012
Lord James of Blackheath, House of Lords February 16 2012
Breaking news Lord James of Blackheath has spoken in the House of Lords holding evidence of three transactions of 5 Trillion each and a transaction of 750,000 metric tonnes of gold and has called for an investigation.
I think there are three possible conclusions that may come from it. I think there may have been a massive piece of money laundering committed by a major government which ought to know better and that it has effectively undermined the integrity of the British bank the Royal Bank of Scotland, in doing so. The second alternative is that a major American department has an agency that has gone rogue on it because it has been wound up and has created a structure out of which they are seeking to get at least 50 billion Euros as a payoff. And the third possibility is that this is an extraordinarily elaborate fraud which has not been carried out but which has been prepared in order to provide a threat to one government or more if they don't pay them off. So there are three possibilities and this all needs a very urgent review.
My Lords, it starts in April and May of 2009, with the alleged transfer to the United Kingdom, to HSBC of a sum of 5 trillion dollars and seven days later, in comes another 5 trillion dollars to HSBC, and then 3 weeks later another 5 trillion. 5 trillion in each case. Sorry. A total of 15 trillion dollars is alleged to have been passed into the hands of HSBC for onward transit to the Royal Bank of Scotland and we need to look at where this came from and what the history of this money is. And I have been trying to sort out the sequence by which this money has been created and from where it has come from for a long time.
http://www.youtube.com/watch?v=eL5hqvTWkYg&feature=player_embedded
Or somebody blew an intel op.
While 81 banks heads submit resignations? http://chasvoice.blogspot.com/2012/02/81-resignations-from-world-banks-22712.html#axzz1nhjUAvzU
My guess is these guys know something? lol
"THE DISCLOSURE" is coming..
There is no reason to conduct ridiculous fraud of such magnitude, when one can do up to 2x more perfectly legally in the shadow banking system via the repo market: just consider US Treasury issuance, where the money mysteriously comes from and disappears into the blue oval in the middle.
BLUE OVAL!
Blue-oval is the new meme verb for anything hidden from us by our bankster overlords.
Blue oval? Like Ford?
Wait, I thought it was Ford?
What if it had to be 50% bigger than the shadow banking system could handle?
perfectly legal but weird the chart looks exactly like the one in my last criminal fraud case
Lord James of Blackheath overshot the end of the pier on that one...
“In a typical version of this scam, Mr. Riyadi and/or his delegates falsely claim that they have on deposit with the Federal Reserve Bank of New York several U.S. Treasury Checks issued to Mr. Riyadi amounting to billions of dollars. … The fraudulent scheme includes multiple documents which purport to have the signatures of various Federal Reserve officials, including Chairman Ben Bernanke.”
“The Federal Reserve is aware of a fraudulent scam,” the page reads, “involving individuals using the names Yohannes Riyadi and/or Wilfredo Saurin, or persons claiming to be representatives of these two men.”
http://www.ny.frb.org/banking/frscams.html
Who do you believe? I'd say a quick audit of transactions at the Bank of Scotland would give the answer, no? The Fed quickly releasing a statement to classify this as a scam is not making me any more comfortable.
Hmmmmm
Do I trust the Federal Reserve?
Do I trust the Federal Reserve?
Hmmmmmmmmmm
Uh, no.
Well since the neither the FEDs or the Nigerians are auditable it's a toss up...
Iran moves to End Petrodollar
Well, that should do it.
When the house of Saud makes the same move, that's when the shit gets ugly.
They would be overrun from all directions before they even finished the statement.
Most likely from that US base there.
Anyone watching?
Silver breaks $37 :)
$1.50 or 5% in 4hrs with slight $ depr'...watch for the smack down :( or just maybe not :)
Shhhh don't tell Robo. He is still bitter he sold at $19.
This is a straight out plagiarism of ANOTHER, but making the (now) obvious connection that Iran is well and truly in a position to make this offer: The Gold Market De and Re Constructed a radical forward look by Peter Trzaska
Now there's some food for thought.
No country that knows the value of gold will send it to Iran for oil at these prices (of gold). Non starter.
If you read the article before commenting you would know that it was not at these prices, which is exactly the point.
Oil is massively overvalued today when priced in gold. Of course Iran would welcome gold for oil at these prices... the real point being however that they can crash the US dollar by naming their rate of gold to oil.
I am familiar with A/FOA. I don't see how Iran could crash the $IMF on its own. If Iran tries to initiate freegold pricing, devaluing their oil, gold would flow into Iran but other oil producers won't revalue their oil because they don't have to (political pressure from USA prevents big customers from buying Iranian oil). An arbitrage would be created; will Iran be swamped with gold? Will their oil be sold out years in advance?
Iran isn't the swing producer, and they don't have enough gold; the harm to their oil wealth would offset gold revaluation gain?
I agree, Iran is not the swing producer... but who is? Looks more and more like Russia is these days.
Whoever it is, the freegold bid is in their interests once they cannot secure their profits in physical at today's prices.
How far away is that point? Gold needs to keep rising to keep that point from being reached, to keep the physical gold flowing, so eventually it reaches the freegold price one way or another. Just depends how many weak hands that do not know the value of their gold remain to be drained.
Paper gold will ineveitably blow up along the way, and with it the dollar that it is denominated in.
Oil knows the value of gold, this is why they have it cornered.
I maintain this is all excellent food for thought, particularly for those who may not have considered the relative valuations of real assets in this way before, especially those who struggle to understand the function of gold.
Agree that freegold is inevitable, but Iran under sanctions cannot trigger it. IMO Russia or the saudis can, on the producer side, and of course the Europeans on the consumer side.
@ nuinut and ITG
FANTASTIC find there nuinut! I did read the article, and just put up the link at my blog. Oustanding article, sort of an easy-to-digest part of FOFOA re how Iran could do it... Food for thought indeed.
GREAT dialogue, gentlemen.
As soon as this posts, I sending green your way.
100 years from now "sanctions" (which invariably punish the populace, entrench the regime and provide them with an external target for populist anger, and push the regime further into the willing arms of other country counterparties) will be viewed with the same sort of disbelief as the counterproductive pro-cyclical fiscal and policy responses during the Great Depression. That is, if we still exist as a society capable of studying historical foreign policy...
When they say "Pay me in Gum", I'll know it's the end.
Could this be the trigger that causes the GLD fake gold price and the GOLD "spot price" to go their seperate ways?
Parting is such sweet sorrow
Going to miss you, GLD, but I need real gasoline in my car
they should have done that long time ago. When nobody uses US$ to trade, Bernanke can print his toilet paper for his own use.
who would the trusted third party be to facilitate these transactions?
ROFL
This kind of thing used to be grounds for invasion.
That's an official declaration of war on the Federal Reserve.
Something something Muammar Gaddafi something something gold backed currency something something rebels someting something bombings in Libya something something gold confiscation something something Muammar Gaddafi killed.
Rinse, repeat.
Something something Saddam Hussein...
Something something Syria...
Something in the way Mummar Gaddafi moved attracted you like no other lover?
Or, perhaps, something in the way he smiled?
Wasn't there a certain Colornel that wanted to do the same thing?
He's pretty quiet now...
Well.... duh...
Bahmani said pay us in whatever currency you like and if you really want to, you can pay us in gold...
I wonder if Zimbabwe can import oil now??
Is there enough gold at the current fiat paper currency price ?
An analyst I respect, I forget who, rubbished the notion that Iran would sell it’s stuff internationally for gold.
Tyler, Any comment about the Iranian Oil Bourse opening on March 20?
"On March 20 Iran is moving full speed with a competing market, the International Oil Bourse (IOB) - also called the Kish Bourse because Iran's trading center is located on Kish Island off southern Iran. Kish was selected because it had been previously designated as Iran's free trade zone."
http://my.auburnjournal.com/detail/201363.html
From July 2011: China And Iran To Bypass Dollar, Plan Oil Barter System, And A Deeper Dive Into The Iranian Oil Bourse
March 20, Vernal Equinox. . . busy day.
The first of the Four Horseman?
Judging by the way Ag is reacting today, you'd think they were accepting silver for oil instead of gold.
Rupee system ?
Oil = USD$ if you don't follow this equation, you will be the recipient of Bombs for Peace ala NATO. Death by thousands and your current regime will be toppled. You will submit to the almighty world FIAT USD!!!
See Hussein or Ghadafi for recent MENA deathsquad hits. It's not the fucking terror threats, underwear bombers with explosive sneakers. On Syria, on Iran, on Pakistan...
That 1st sentence was the best & simplest summary of US foreign policy ever. Bravo mate.
Warren Buffet, there goes your gold theory. What was that again? Using sea shells as currency? Bandwagon investors? Wtf? Gold for oil?????
I don't get it. Who would want to pay in gold when they can pay in worthless toilet paper?
Because the oil producer won't accept their paper and they're really rather keen on keeping the lights on and the traffic moving?
Yeah but the article say gold OR dollars. It doesn't say ONLY gold. I'm assuming this means customer's choice which as I said before: who in their right mind would opt to pay in gold when they can pay in toilet paper?
I don't get it. Who would want to pay in gold when they can pay in worthless toilet paper?
***********
Exactly and furthermore-are those countries that will be paying in gold going to make all the people who have no gold-pay for their oil usage in gold?
Have to wonder how long that will fly-
Only until the oil buying country runs out of gold-i would guess-
At first, I though "no way China or India would go along with this, they NEED the US to consume their products", but as the US economy grinds to a halt China and India will need new markets. Those markets will be the new economies, based on gold, Iran (74 million), Russia (142 million), Latin American countries (371 million), not to mention the local markets of China and India themselves. As long as all of the countries are trading in gold, or gold backed currencies, and maitaining relatively equivilent trade deficets (or surpluses) then there shouldn't be a problem. Western countries would fall, and China, India, or Russia would in line to become the next Super Power.
At first, I though "no way China or India would go along with this, they NEED the US to consume their products", but as the US economy grinds to a halt China and India will need new markets.
************
At some point down the road that might happen but at this point-they need the US-
The BS appears when you look at how will the people get gold-
They would need to be paid in gold and i doubt any corporation would be in business long by paying in gold and half the world not buying because of no gold-because-the tail does not wag the dog-yet-
Hence silver.
Won't be long before the price of gold comes crashing down to reality.
I calculate gold is worth a quarter of it's present market value ... and that's me being generous.
www.marketblip.com
No, I'd say that's you being ignorant.
Won't be long before GOLD skyrockets up to reality
there, I fixed it for you
Been inhaling some bad weed mate?
?
Nice tactic marketblip: Say something so obviously antogonistic to most folks perusing ZH and then slap your website address at the bottom.
Marketing 097.
Marketblip, your website shoud be www.EffingMoron.com
I'll buy yours for $450/oz. Done.
Guys, calm down. He meant GLD, not real gold.
Does that mean his comment was SPM, not real spam?
The U.S. spent trillions of petrodollars in Iraq and..........left the country worse off than it was before.
If they are trying to demonstrate some kind of moral high ground with reguard to controlling the reserve currency in the world they are failing.
How do you even do that? Spend trillions in a country and leave it worse off? And I'm not even going to get into how worse off the U.S. is in this fucked up post 9/11 domestic inanse asylumn.
I will not be supporting military action against a country that chooses to break the chains of petrodollar bondage.
Perhaps many don't realise here, but the USD is, essentially, being discounted. China/Russia/India won't allow the collapse of the USD until they've divested themselves of their rapidly depreciating USD assets.
So, the USD is safe for a while - all the sabre rattling & yo-yo macho posturing is just that. The obsession of US foreign policy with the miniscule threat of (possible) Iranian nucelar weapons is either genuinely dumb (and I wouldn't discount that) or a last ditch attempt at manoeuvring their forces/bases to head off/discourage the China-Russia axis by having a neat landing strip close at hand.
China/Russia will wait until they've accumulated enough off-site resources & gold with their USD assets/reserves before pulling the plug on America. Do hurry though if you've a vested interest - it will happen all of a sudden & sooner than you think - as it always does.
When you print the money magically, spending it is meaningless n'est–ce pas?
Wouldn't it be ironic if the actions against Iran (like sanctions and freezing banking actvitity) were to lead Iran to adopt a gold or even oil standard? Then Iran would have the first commodity backed currency in the world since the gold window closed in the 1970's. Wouldn't it also be ironic if while the USD is collapsing the Iranian gold/oil backed money/economy was flourishing. Our attacks on their economy may drive them to adopt a policy that could spare them the fallout from the death of our own currency...We'll see.
No, these are not ironic, but wholly expected outcomes. Otherwise, those actions wouldn't have been pursued.
What is it about our spanking new freshly printed $$Trillions that iran finds unappealing?
Perhaps Bernanke could issue a statement outlining the desirability of owning Federal Reserve Notes and convince them that Gold is a barbarous relic that has no value.
meybe the fed could send denninger to tell iran how ridiculous gold is?
That is freaking hilarious! I almost choked on my food laughing so hard.
If Iran can manipulate the price of oil north, and trade it for gold before it also goes up, they may be on to something here....
Pay in gold? Bullshit. How is that being transported, I'll intercept!
I don't think the Russian/Chinese Air Force/Navy would like that very much...If nobody could nab Hugo Chavez's stash in transit, good luck robbing superpowers.
Has anybody even tried? No to my knowledge.
PS-There is also sink vs nab! ;)
So we can look forward to The Most Peaceful Nation in the WorldTM getting involved in yet another war for oil - er, peace, I suppose.
Bull-ish-y!
BY itself it is not a big deal. But considering all of the other country to country agreements to trade good and services in non U.S. dollars that have happened over the past 24 months, the trend is there. The dollar is toast.
They also take rice as payment.
Well, sometimes they just take rice and don't pay for it at all. Just ask India:
So they stiff some idiots dumb enough to trade with them. I think I have no problem with that. (evil grin)
Kind of hard to consider it a default when sanctions have eliminated legitimate payment options.
"...sanctions have eliminated legitimate payment options."
Too right, NA.
The Iranians and their trade partners are having to use ever more convoluted systems to conduct business.
Iran is hurting. More precisely, Iranians are suffering.
Shame.
This works out fairly well for China and Iran actually. Iran imports quite a bit from China and there are some massive infrastructure deals going through to link up Iran with High Speed Rail. China can pay in RMB, Iran can use that balance to pay for imports and the contracts.
The cool thing about that train line going in is that it will also be high speed freight. Opening the potential for high speed oil trains as well.
Fairly good deal to be honest. The only countries that will be left paying in Gold are the ones that have nothing else to offer of any value to Iran that Iran wants.
So, China, India, Russia and others are going to pay Iran with Gold or with electronic fiat. No contest.
For China at least, it's more of a barter deal.
Oh my here we go again.. and the ppl will believe anything
Just like the DEBKA (mossad) article a few weeks back
just pure propaganda.. the sad thing is how even ZH and the readers here all jump on these lies with foaming mouths.
My guess is they are attempting to paint gold in a negative light, ie the old 'conflict mineral' trick
Look people. here is how it is
NOBODY in their right minds buys oil (which is burned up) with gold (which is forever)
It's just STUPID
If a sovereign nation has gold and needs oil it creates paper money from thin air and uses that to buy the oil, the seller can take the paper and buy their own gold from the open markets
Otherwise the end result is that after the oil is used up, one nation sits there with no gold and no oil, while the other side has all the gold and all the oil
PLEASE stop peddling this idiotic propaganda ZH PLEASE
I'm not sure why you were downvoted so much. Your argument seems logical. I am willing to listen to the other side if folks can explain why they disagree with postafoa02.
It's just because people don't know what gold is. They don't understand it. Gold is not a currency, or an investment. US dollars is an investment.
The ONLY reason you liquidate gold is to invest in something you think will OUTPERFORM gold within a specified timeframe. Gold is where you go when you don't want to invest in anything.
fofoa.blogspot.com
Learn.
Ridiculous. Yeah, gold is not a currency. It is THE currency.