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Russia, Iran Proceed With Bilateral Trade, Drop Dollar; Russian Warships Park In Syria; Iran Accelerates Nuclear Enrichment

Tyler Durden's picture




 

For anyone wondering how the abandonment of the dollar reserve status would look like we have a Hollow Men reference: not with a bang, but a whimper... Or in this case a whole series of bilateral agreements that quietly seeks to remove the US currency as an intermediate. Such as these: "World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", and now this: "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says." And ironically, the proposal to dump the greenback did not come from Iran. Per Bloomberg: "Iran and Russia replaced the U.S. dollar with their national currencies in bilateral trade, Iran’s state-run Fars news agency reported, citing Seyed Reza Sajjadi, the Iranian ambassador in Moscow. The proposal to switch to the ruble and the rial was raised by Russian President Dmitry Medvedev at a meeting with his Iranian counterpart, Mahmoud Ahmadinejad, in Astana, Kazakhstan, of the Shanghai Cooperation Organization, the ambassador said." Is Iran gradually becoming the poster child of an energy rich country that just says no to the dollar: "Iran has replaced the dollar in its oil trade with India, China and Japan, Fars reported." Next thing you know China, Russia and Japan will engage in bilateral trade agreements with the Eurozone in exchange for purchasing European or EFSF (which at last check are now forced to give 30% guaranatees) bonds, and bypassing dollars completely. But yes, aside from everyone else, virtually everyone (footnote 1) is still using the dollar as currency of global exchange.

And just to make sure that the message is heard loud and clear, Russia just docked several warships in Syria, the same country the US told all American citizens to leave two months ago. From China Daily:

Russian warships patrolling the eastern Mediterranean Sea have docked at Russia's naval supply facility in the Syrian port of Tartus, the private Addounia TV reported Saturday.

 

Governor of Tartus Imad Naddaf received the ships' leaders and expressed appreciation to Russia's support for Syria, the report said.

Russia's state-owned Itar-Tass news agency quoted a source from the Russian Navy as saying that "It is planned that the port of Tartus will be visited by a big anti-submarine ship of the Northern Fleet 'Admiral Chabanenko' and an escort ship 'Yaroslav Mudry'."

 

"Our ships are supposed to stay in Syria for several days," the source said, without giving more details about the warships' mission in the country.

 

The move is considered by many observers as an apparent show of Russia's support for Syrian President Bashar al-Assad whose country has been gripped by a nearly 10-month bloody unrest.

 

The Russian Navy, however, claimed the move was part of scheduled exercises and had no connection with the situation in Syria.

 

The warships, led by "Admiral Kuznetsov," the country's only aircraft carrier, have started their patrol missions in the Northeast Atlantic and the Mediterranean Sea on December 6 to "ensure the security of the sea navigation and other Russian maritime economic activities," according to the Russian Navy.

That this is happening just as Reuters inform us that Iran is about to move the invasion timetable by a few months is rather disturbing - recall that "according to Ehud Barak, the Israeli Defense Minister, after September, a successful military attack on Iran’s nuclear sites will no longer be possible, because Iran will widen the redundancy of its facilities and spread them out over more sites, including the impenetrable  site at Fordow (near Qom), which is located inside a mountain." From Reuters:

Iran will in the "near future" start enriching uranium deep inside a mountain, a senior official said, a move likely to further antagonize Western powers which suspect Tehran is seeking nuclear weapons capability.

 

A decision by the Islamic Republic to conduct sensitive atomic activities at an underground site - offering better protection against any enemy attacks - could complicate diplomatic efforts to resolve the long-running row peacefully.

 

Iran has said for months that it is preparing to move its highest-grade uranium refinement work to Fordow, a facility near the Shi'ite Muslim holy city of Qom in central Iran, from its main enrichment plant at Natanz. The centrifuges and other equipment needed to start enrichment were installed at Fordow last year.

 

Iran is already refining uranium to a fissile purity of 20 percent - far more than the 3.5 percent level usually required to power nuclear energy plants - above ground at Natanz.

 

The country said last year it would move this higher-grade enrichment to Fordow, which like other Iranian nuclear sites is regularly inspected by the IAEA, and also sharply boost output capacity.

 

The United States and Israel, Iran's arch foes, have not ruled out strikes against the Islamic state if diplomacy fails to resolve the dispute.Iran disclosed the existence of Fordow to the IAEA only in September 2009 after learning that Western intelligence agencies had detected it.

The bottom line is that once the transition to Fordow is complete there will be no more possible ways to spin an invasion. Which gives a rough "window of opportunity" - expect to see it reflected ever more in the price of Brent as the September deadline is pushed forward by weeks and months.

As for the escalation in the USD-depegging, all that needs to happen now is for the brand spanking new Chinese aircraft carrier to do some wargames of its own in the Straits of Hormuz for the pre-terminal escalation chaos to be complete.

 

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Sun, 01/08/2012 - 16:40 | 2044810 lolmao500
lolmao500's picture

All ready for WW3!

And let's mention next week's election in Taiwan that could lead to China invading Taiwan... if the democrats win.

And let's also mention the big ``celebrations`` in North Korea on April 15 because of the 100th year anniversary of Kim Il Sung's birth. I expect a nuclear test or some BS like that... could lead to trouble.

Sun, 01/08/2012 - 16:41 | 2044815 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

We must bomb Iran and Russia and China!  Our Air Force will fly over all three and take out their targets within seconds, and then it's over!  Easy as pie.  Then all Americans will have free oil forever.  USA!  USA!  USA!

Sun, 01/08/2012 - 16:47 | 2044825 lolmao500
lolmao500's picture

Well the nutjobs nearly backed Georgia when they killed Russian peacekeepers in 2008. Russia deployed nukes and said JUST YOU TRY BITCHEZ!

Bush was sane enough to tell Cheney to shut the fuck up.

And some more news :

Panetta: U.S. will not allow Iran to develop nuclear bomb, block Straits of Hormuz (AP)

Iran intelligence minister says secret services arrested 'U.S. spies' (AP)

Arab League calls for more monitors in Syria (AP)

Hezbollah: UN chief Ban ‘not welcome’ in Lebanon (DPA)

Canada mulls evacuating Damascus Embassy, says Toronto Sun (Haaretz)

Sun, 01/08/2012 - 16:49 | 2044841 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bush wanted to do everything to lay America to waste, but he didn't want to oull the chord.  He knew what it would mean for him to start WWIII.  As for now he will slip modestly into history as a bad POTUS.  Whoever starts WWIII will be the worst ever.  He didn't want that.

I've said it before, W was much smarter than anyone gives him credability for. 

Sun, 01/08/2012 - 16:54 | 2044854 lolmao500
lolmao500's picture

Yep. The fucker got away with war crimes, destroying the constitution, etc... because people thought it was all a mistake and it's just that Bush was stupid. He looks stupid, but the people controlling him are not.

Sun, 01/08/2012 - 17:14 | 2044918 AgShaman
AgShaman's picture

My mind flashed to when Jr. was explaining his actions....

Then sits down next to Papa....and gets the "well done son!" secret skull and bones handshake (you just moved our plans fwd by at least a decade)

Sun, 01/08/2012 - 19:30 | 2045200 wanklord
wanklord's picture

To all of you, Strauss' Vulgar Many out there, as soon as the first bullet is fired in the Persian Gulf, you can certainly say good-bye to all of your ridiculous investments.

Sun, 01/08/2012 - 21:29 | 2045414 The Big Ching-aso
The Big Ching-aso's picture

 

 

This is gettin' uglier than a wagon load of unshaved Rosie O'Donnells.

Sun, 01/08/2012 - 23:08 | 2045592 Taint Boil
Taint Boil's picture

Rosie O'Donnells ...... JFC, just had a visual of that ....eeew!

Mon, 01/09/2012 - 12:51 | 2046818 eureka
eureka's picture

US is the Third World = THIRD-WORLD-US = TWUS

TWUS has Two Tactical WMDs:  FED RESERVE & PENTA GUN (FR & PG).

TWUS FR+PG Voodoo "Strategy":  Take My Garbage Paper Or I Kill You.

IRAN TO US:  NO THANKS.

RUSSIA & CHINA: We Second Irans' Motion.

EU to follow.

Seems ALL US'ians may soon have to resume working for a living.

Sorry Elites/Speculators/Fascist - and - Socialsits - and - Security Apparatus.

WORK - WHAT A CONCEPT.

Sun, 01/08/2012 - 22:19 | 2045502 TheFourthStooge-ing
TheFourthStooge-ing's picture

More wanklord copy-and-paste. He posted the same comment yesterday. Look for it to repeat over the next 8 months.

 

Sun, 01/08/2012 - 22:31 | 2045529 Teamtc321
Teamtc321's picture

Copy and paste something new bitch lord. 

Mon, 01/09/2012 - 00:45 | 2045812 Lower Class Elite
Lower Class Elite's picture

He made it boldfaced and everything!

Mon, 01/09/2012 - 09:53 | 2046289 Colonial Intent
Colonial Intent's picture

Really OMG, "quick i better sell my Raytheon portfolio immediately"

American global hegemony is a good formula for investment (just not in peacetime goods)

The Morality of using the formula for personal profit is a different conversation.

 

Sun, 01/08/2012 - 22:37 | 2045537 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Barry is in charge now. Why are we talking about the last guy? Never once anyone mention Clinton for over eight yearts. Now another Clinton is in office and all they do is talk about the last guy. No bias at all.

Sun, 01/08/2012 - 23:17 | 2045618 lolmao500
lolmao500's picture

Clinton too was pure trash. The guy was dealing drugs for the CIA before he was president. He was recruted by Bush Sr. in the CIA.

Bush Sr? CIA. Clinton? CIA. Bush Jr.? Son of CIA. Obama? Considering his weird past, I would say CIA.

Mon, 01/09/2012 - 02:09 | 2045936 pkea
pkea's picture

If you answer who the CIA works for, you get the picture....

Fri, 03/09/2012 - 07:54 | 2046247 Colonial Intent
Colonial Intent's picture

.

Mon, 01/09/2012 - 11:34 | 2046537 my puppy for prez
my puppy for prez's picture

Don't forget Bush Sr. and the cool midnight tours of the White House organized by Craig Spence who just happened to run several male prostitute services....and then there is the Franklin Coverup.  

Sun, 01/08/2012 - 23:24 | 2045635 tj3
tj3's picture

ya the 0.05 percent tend to do that

Sun, 01/08/2012 - 19:32 | 2045206 Bananamerican
Bananamerican's picture

"W was much smarter than anyone gives him credability (sic) for"

smawrt lik me

Sun, 01/08/2012 - 19:58 | 2045269 BlackholeDivestment
BlackholeDivestment's picture

Here's the Penetta Iran interview. http://www.youtube.com/watch?v=zjBQQdLVRbs

Sun, 01/08/2012 - 16:54 | 2044852 Sudden Debt
Sudden Debt's picture

bomb China? And who will make the new Iphone5? Ipad 3? WHELL?!

Sun, 01/08/2012 - 16:58 | 2044868 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Uhmmm...Africa?

Sun, 01/08/2012 - 18:20 | 2045066 Schmuck Raker
Schmuck Raker's picture

Vietnam. We haven't bombed them since forever.

Sun, 01/08/2012 - 21:00 | 2045374 CPL
CPL's picture

Might as well put it on the list.

 

Sun, 01/08/2012 - 20:03 | 2045281 Green Leader
Green Leader's picture

Yes indeed, Africa.

Look at the magician's other hand.

Strange diseases coming this way, USA & Territories included...

Fri, 03/09/2012 - 07:53 | 2046237 Colonial Intent
Colonial Intent's picture

.

Mon, 01/09/2012 - 02:40 | 2045976 kiwidor
kiwidor's picture

No, because african blacks are , in terms of Binet Quotient, functional retards.

Clear example in Rhodesia:  munts, or moontz as dem called

they can't swim.  they drown in a puddle because of social conditioning

moont goes to shop.  no honey because Mugabamonkey done fucked up agriculture by driving smart whites off land

"stupid shopkeeper...there's no honey"

wake to reality.

Mon, 01/09/2012 - 02:41 | 2045977 kiwidor
kiwidor's picture

i dumbfounded a few south africans recently, during the world cup.  I asked them,

"how many moontz does it take to fill a swimming pool"

 

they thought it was a trick question, but it was a rhetorical joke.  i had free beers all night when i explained it to them.

Sun, 01/08/2012 - 17:22 | 2044934 ozziindaus
ozziindaus's picture

The same countries we bomb. Post WWII most thriving nations were East Germany, Japan, Vietnam, Korea. Notice the pattern? Go long Iraq, Afghanistan and soon, Iran. 

Mon, 01/09/2012 - 09:29 | 2046228 Instant Wealth
Instant Wealth's picture

West Germany, my Dear ... West Germany.

East Germany was occupied by the Soviet Union in 1945, became a communist satellite state and defaulted in 1989 ('reunification').

Mon, 01/09/2012 - 01:31 | 2045885 Campagnolo
Campagnolo's picture

mexico and central american countries

Sun, 01/08/2012 - 17:03 | 2044889 tocointhephrase
tocointhephrase's picture

And be home in time for tea. You are truly deluded.

Sun, 01/08/2012 - 17:14 | 2044917 redpill
redpill's picture

Tea?  This is 'merica, we don't drink no sissy tea.  We drink watery weak piss-tasting beer and cheap crappy pizza that gets delivered in 30 minutes because we're too lazy to cook for ourselves.  Get it straight!

Sun, 01/08/2012 - 19:48 | 2045242 Triple A
Triple A's picture

fuck that, give me some craft beer  a home made pizza and a juicy article on zero hedge and im set

Sun, 01/08/2012 - 23:17 | 2045622 TheFourthStooge-ing
TheFourthStooge-ing's picture

You forgot to mention a doobie as big as my middle finger. Don't fret, I remembered to bring one.

Yo, slewie! Got a light?

 

Mon, 01/09/2012 - 00:48 | 2045821 Lower Class Elite
Lower Class Elite's picture

C'mon!  Puff puff pass, Humphrey.

Mon, 01/09/2012 - 06:32 | 2046086 tocointhephrase
tocointhephrase's picture

Figure of speech, but hey junk me all you want. The guys post might as well be Bush declaring that the war was over in Iraq. Please junk me all you like but the fact remains that China, Russia & Iran will screw the 'west' in more than one hole!

Mon, 01/09/2012 - 07:28 | 2046106 TheFourthStooge-ing
TheFourthStooge-ing's picture

tocointhephrase, doing an imitation of Ben, the Over -Literal Dermestid Beetle, said:

Figure of speech, but hey junk me all you want. The guys post might as well be Bush declaring that the war was over in Iraq.

Let's take a look at what Mr Lennon Hendrix wrote to prompt this reaction:

"We must bomb Iran and Russia and China!  Our Air Force will fly over all three and take out their targets within seconds, and then it's over!  Easy as pie.  Then all Americans will have free oil forever.  USA!  USA!  USA!"

Is it really necessary to ruin obvious sarcasm with a big blinking sarcasm alert? I can understand your misperception if English is not your native language or if you're afflicted with Asperger's Syndrome, but other than that, there's really no excuse.

Please junk me all you like but the fact remains that China, Russia & Iran will screw the 'west' in more than one hole!

There is no need for China, Russia, and Iran to screw the west when they can simply sit back and watch the west screw its own face in the ass.

 

Mon, 01/09/2012 - 12:20 | 2046669 tocointhephrase
tocointhephrase's picture

Looks like I fell for that one

Sun, 01/08/2012 - 20:51 | 2045351 constitutionalist
constitutionalist's picture

stupid or brainwashed? 

Sun, 01/08/2012 - 20:52 | 2045354 constitutionalist
constitutionalist's picture

who else can our govt piss off? seriously, lets bomb the ocean, stupid fish, lets start destroying water too, stupid water, it wont do what i tell it to do, i am almost speachless, even though we all knew this is going to happen. its just unfortunate. 

Sun, 01/08/2012 - 17:44 | 2044972 vast-dom
vast-dom's picture

Oil to $200 and Silver to $50! Let's get this party underway! I must add that the US's gambit is foolish as all hell -- they will be dealing with extremely asymmetric more at chaotic and unpredictable responses that no war games nor game theory could account for -- Iran is not that amatuer nor is the US that pro to allow for this weird pissing contest to end well. 

Sun, 01/08/2012 - 20:39 | 2045335 xela2200
xela2200's picture

Is what We don't know that concerns me. What is behind all these pantomimes?

Sun, 01/08/2012 - 22:10 | 2045486 CrockettAlmanac.com
CrockettAlmanac.com's picture

It's the unknown unknowns that'll get ya.

Sun, 01/08/2012 - 22:43 | 2045555 disabledvet
disabledvet's picture

i don't want nuclear "tests." let's go all in on the real deal. see what the Farsi-phuckers got.

Sun, 01/08/2012 - 16:43 | 2044814 LawsofPhysics
LawsofPhysics's picture

Awesome.  This "should" be great for gold, bad for all fiat, but since when have technical details mattered?  It gets interesting when the shooting starts, not before.  What do the Saudis have to say about all this saber rattling?  It would be a shame if a "terrorist" group sunk those Russian warships, now wouldn't it?

Sun, 01/08/2012 - 16:44 | 2044823 apberusdisvet
apberusdisvet's picture

The fundos for gold are building to a crescendo.  No wonder "they" did the take down in December.  They may try another, but it is very doubtful that, in the foreseeable future, gold will come close to $1500.

Sun, 01/08/2012 - 16:46 | 2044830 Sudden Debt
Sudden Debt's picture

Who says the russians won't sell them a nuke if the US doesn't back down?

 

Sun, 01/08/2012 - 16:48 | 2044835 lolmao500
lolmao500's picture

Because a lot of Iranians hate Russia with a passion.

Sun, 01/08/2012 - 18:15 | 2045056 Sudden Debt
Sudden Debt's picture

let's see.... Russia hates America (some history there) and Iran does to....

you sure?

and if they pay a billion per nuke for it?

Sun, 01/08/2012 - 21:08 | 2045382 CPL
CPL's picture

The rial is an oil backed currency.  So it would be a ruble to oil exchange as one of the tylers mentioned.

 

No dollars.  Just oil

 

Oil > USD

Mon, 01/09/2012 - 02:15 | 2045942 pkea
pkea's picture

russia can help iran out of principle

Sun, 01/08/2012 - 18:17 | 2045062 BigJim
BigJim's picture

O really? Why's that, then?

Sun, 01/08/2012 - 19:59 | 2045260 earleflorida
earleflorida's picture

ummm, don't forget about the 100k iraqi troops poisoned in 'desert storm' [left to dry-rot in the deserts grave-yard] by the brit's and u.s.,... wasn't that far back - but russia and iran is a different story, with alot of meat on it to be spun some 40 years ago, where the average populations age is 40 years old [long time forgotten?]

let's face it,... the world is getting fed-up with our ludicrous, malicious, hostile, and flagrant foreign policy bullying

what the hell has iran done? someone answer me that,... it was the arabs that caused 911, not the iraqi's, iranian's or for that matter the taliban in afghanistan 

Sun, 01/08/2012 - 21:35 | 2045425 gravedestruction
gravedestruction's picture

"not the iraqi's"

got one out of three right

331/3% not a bad ratio all things considered

Sun, 01/08/2012 - 22:39 | 2045544 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Do they still beat women for speaking in Iran? Or are they still shooting them?

Sun, 01/08/2012 - 23:13 | 2045606 pan-the-ist
pan-the-ist's picture

They don't consider it rape in the USA unless there is evidence she faught back.  I think you are talking about our Alie Saudi Arabia where women aren't worth more than yeast.

Sun, 01/08/2012 - 23:27 | 2045639 tj3
tj3's picture

It's Pakistain or Congo for me.

Mon, 01/09/2012 - 02:45 | 2045980 kiwidor
kiwidor's picture

I had a friend married a kiwi girl.

i warned him against it before, and on the day.  in the end he went through with it. 

3 weeks later he phones up. "she doesn't clean, she doesn't cook...i'm working, studying and keeping house and she's doing nothing"

i said "you have to slap her...if she talks back, slap her again.  when you go to bed, shag her rough and roll over and go to sleep when you have your rights provided...in the morning, wake up, stick it in rough again, and when you've finished, push her out of bed and tell her to make your breakfast"

they're still together.

Mon, 01/09/2012 - 01:18 | 2045866 Ima anal sphincter
Ima anal sphincter's picture

what the hell has iran done? someone answer me that ...Nothing!!

Who did 911 again???????? Must of been those "arabs" that hail from Israel who hang with the Mossad.

Mon, 01/09/2012 - 11:59 | 2046602 acrabbe
acrabbe's picture

the arabs didnt cause 9/11. catch up earle

Sun, 01/08/2012 - 20:43 | 2045344 xela2200
xela2200's picture

And Japan used to hate China, France and Germany, etc

War makes for strange bed fellows.

Sun, 01/08/2012 - 21:10 | 2045384 CPL
CPL's picture

The need for oil surpasses nationalites, this is a question for the survival of the spieces.

 

Recession be damned.

Sun, 01/08/2012 - 23:18 | 2045623 Harlequin001
Harlequin001's picture

Who needs oil when we have derivatives?

Fri, 03/09/2012 - 07:53 | 2046224 Colonial Intent
Colonial Intent's picture

.

Mon, 01/09/2012 - 09:17 | 2046221 Colonial Intent
Colonial Intent's picture

All nukes have a "fingerprint" dating the time and the reactor it was made from.

Whoever originally made the first terrorist nuke that is used will have some explaining to do.

Mon, 01/09/2012 - 17:08 | 2047706 xela2200
xela2200's picture

Yeap, that would probably be us.

Sun, 01/08/2012 - 16:47 | 2044832 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The apreciacion in the DXY could be due to a decrease in volacity, since so many States are no longer trading with it, which means the initial snapback from another QE X will be tremendous.

Sun, 01/08/2012 - 16:47 | 2044834 bugs_
bugs_'s picture

Russian warships were not off Libya, are not off Iran.

They are off Syria.

What is so special about Syria to the Soviets?

Sun, 01/08/2012 - 16:50 | 2044843 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Crystal skulls?

Sun, 01/08/2012 - 16:55 | 2044855 Hulk
Hulk's picture

Perhaps Crystal Skull Vodka???

Sun, 01/08/2012 - 17:18 | 2044921 Whoa Dammit
Whoa Dammit's picture

Maybe because Syria is geographically closer to Israel?

Sun, 01/08/2012 - 17:20 | 2044930 redpill
redpill's picture

They have a naval base there left over from the Cold War.

Sun, 01/08/2012 - 18:15 | 2044994 ivana
ivana's picture

Syria is similar to Libya. Both are foreplay for Iran. Powerz have taken Libya cause they would like to have ALL Libyian oil for themselves to sell at 200+USD to Europe when Iran rumble starts.

Syria is THE VITAL LINK (oil & gas pipelines) from Iraq to Mediterranian where Powerz would like to sell their Iraqe oil after Hormuz blocade. Maybe even Saudi oil can be piped out to Mediterranian via Syria.

In case Powerz take both Libyia and Syria , Russian oil will probably not be needed so much in EU.

Very simple: conquer all available oil & gas fields and pipelines and than block Gulf. Trillions guaranteed + bonus blocked oil supply for chinese where with little luck ...there may be civil war cause 100s millions (which just have bought new car) of middle class will not be happy buying petrol at 3-4 times higher prices than year before.

Sun, 01/08/2012 - 18:20 | 2045069 BigJim
BigJim's picture

Don't forget Libya's gold, now onstream to allow massive quantities of even more naked paper shorting, all at zillion:1 leverage!

Sun, 01/08/2012 - 19:28 | 2045192 DosZap
DosZap's picture

ivana

 IMHO, Syria is in the cross hairs for one MAJOR reason.

 

They are the PIPELINE to Hamas, and Hezbollah, supplying rockets, missiles, and armaments to them FROM IRAN,keeping the shit stirred up in Israel.

They DO not WANT a peace agreement between them, and they do not want a Palestinian state.

Simply, their is no answer as far as these folks are concerned but the total annihilation of Israel.

It WILL never happen............we are prophetically getting damned close to the BIG one.

Sun, 01/08/2012 - 19:44 | 2045235 john39
john39's picture

but zionism should be ended.  then jews, arabs and christians might have a chance to live in peace.

Sun, 01/08/2012 - 22:20 | 2045504 frostfan
frostfan's picture

ended by who?

Mon, 01/09/2012 - 00:03 | 2045723 StychoKiller
StychoKiller's picture

"The Lord of the Flies"

Sun, 01/08/2012 - 22:24 | 2045511 CrockettAlmanac.com
CrockettAlmanac.com's picture

Zionism is not the problem. The use of force to propel Zionism is the problem. Interacting voluntarily with others while avoiding any inclination to use force is an acceptable practice even in pursuit of Zionism.

Sun, 01/08/2012 - 20:06 | 2045284 earleflorida
earleflorida's picture

let's not forget the gaza prison/death camps

bottlerockets don't equate to an f-18,... kinda like going into a gun fight with a water pistol

Sun, 01/08/2012 - 22:25 | 2045516 CrockettAlmanac.com
CrockettAlmanac.com's picture

Free Gaza

 

http://freegaza.org

Sun, 01/08/2012 - 21:12 | 2045387 CPL
CPL's picture

What middle class?

Sun, 01/08/2012 - 18:16 | 2045061 Sudden Debt
Sudden Debt's picture

sure... they're just there to play laser tag....

 

Sun, 01/08/2012 - 18:24 | 2045077 Scalaris
Scalaris's picture

 

Before the Kharkiv Accords, where a signing of the treaty between Russia and Ukraine took place, where Russian lease on naval facilities in Sevastopol, Crimea was extended beyond 2017 by 25 years (to 2042) with an additional 5 year renewal option (to 2047) in exchange for a multiyear discounted contract to provide Ukraine with Russian natural gas.

This was the result of the several-year gas disputes between Russia and Ukraine, which led the latter to pay an increased price for the supply of Russian natural gas in 2006 and 2009, including a halt of natural gas supplies to European countries.  

Russia maintained a Soviet-era naval supply and maintenance base in the Syrian port city of Tartus, which was established during the Cold War to support the Soviet Navy's fleet in the Mediterranean Sea, under a 1971 agreement with Syria, and as a result, Russia became Syria's main arms supplier, after forgiving Syria of three-fourths, or $9.8 billion, of its $13.4 billion Soviet-era debt.

Amid Russia's deteriorating relations with the West, because of the 2008 South Ossetia War‎ and plans to deploy a NATO missile defense shield in Poland, Turkey and Romania, Assad agreed to the port’s conversion into a permanent Middle East base for Russia’s nuclear-armed warships.

The current pressure on Assad's regime adds further pressure on Russian operations in Syria due to NATO's intervention and puts any plans of transferring the Russian Black Sea fleet and re-establishing their pre-Soviet era Mediterranean navy presence under threat.

The power vacuum created by the waning power of the Assad regime has also proven advantageous for the Muslim Brotherhood function in the area, which is currently asserting itself towards the port of Tartus, which can be prove a vital strategic point for collaboration with Egypt and Lebanon operations.

Hence the growing support and promotion of Turkish regional geopolitical interests, through US foreign policy, in order to control the "spontaneous" Arab Spring movements throughout the Muslim areas, with its influence caused by its status as a strategic bridge between Eurasia and Middle East.

Consequently, Russia is trying to achieve further geopolitical influence in the broader Mediterranean area, through asset acquisitions of natural resources, eg. gas fields, and substantial capital investment, along with its strategic energy agreements for natural gas supply via Nord StreamSouth Stream and Blue Stream.

Sun, 01/08/2012 - 18:51 | 2045133 Vlad Tepid
Vlad Tepid's picture

A military position in Syria also acts as a counterbalance to Turkish moves and adds pressure on them should they decide to tighten down in the Bosphorpus.  The Ottoman Turks were the bitter enemies of the Russians and Syria was their prime external holding for centuries and while it is in Russia's sphere it prevents it from falling back to the Turks.  Also and more tangentially, the Syriac Orthodox Church is an important patriarchy in Orthodox Christianity.  Ties between the two countries are quite deep.

Sun, 01/08/2012 - 19:24 | 2045186 Scalaris
Scalaris's picture

 

I agree regarding the counterbalancing of the military power equilibrium but I think that economic interests from Turkey's role as an intermediary pipeline host to Russia's European gas supply, overshadows any prospective conflict, derived by historic religious differences.

Moreover, Turkey's regional role is that of a complete proxy for American foreign geostrategic policies, and in the remote but not completely inconceivable possibility of a reversion to a more autocratically Islamic regime, in comparison with the current more liberal balance of secularized Islamism, will advertently force meet opposition from the State Department and subsequently, NATO. 

The fact remains though, that Turkey's vast population can provide both a great diversity as it can be divided between a burgeoning middle class, which can provide the necessary demand and thereby provide industrial output from the economically weakened European manufacturers, while its other non-urbane and more impoverished half of population can provide a large cheap labor pool, which can be promptly exploited by American and European investments.

This is the main reason of Turkey's European Union membership debate, as it is viewed as both a considerable economic force, and a threat due to the massive inflows of rural Muslim population. 

Mon, 01/09/2012 - 07:52 | 2046116 DrunkenMonkey
DrunkenMonkey's picture

Thx for the heads up.

Mon, 01/09/2012 - 08:00 | 2046125 Ghordius
Ghordius's picture

"Turkey's role as an intermediary pipeline host to Russia's European gas supply"

You mean the Nabucco Pipeline? http://en.wikipedia.org/wiki/Nabucco_pipeline

But is this not seen in Moscow as a direct attempt to circumvent their hold over the Ukraine and as an attack to the gas market they are building up in Europe?

Re: the EU membership debate, George W. Bush literally poisoned the thing by trying to push too hard for immediate membership... I still wonder if this was his intent or if it just backfired

 

Mon, 01/09/2012 - 17:51 | 2047831 Scalaris
Scalaris's picture

I was mainly talking about Blue Stream, which currently carries natural gas from Russia into Turkey, and if I'm not mistaken the construction of Blue Stream's extension is underway, which will provide natural gas to Eastern Europe through Bulgaria, Serbia, Croatia and Hungary.

As for the Nabucco pipeline, it was Russia's South Stream which is considered to be a main competitor, designed to transport Russian natural gas to Austria through the Black Sea and via Bulgaria, Greece and Italy.

Nabucco's capacity of 31 billion m3 per year is proved to be commercially non-viable due to supply issues from Iraq's and Azerbaijan's gas fields, versus South Stream's of 63 billion m3 per year.

Despite worries regarding South Stream's feasibility that it may cost twice as much as Nabucco, which was initially expected to cost €12–15 billion but instead doubled, and the proposition of merging South Stream and Nabucco in order to reduce investments and operational costs, by ENI, Russica declined, highlighting South Streams's superior commercial viability and more competitive technical aspect, compared to Nabucco.

That being said, South Stream is largely viewed as a political project, in order to counter Nabucco's role as a facility designed to reduce European dependence on Russian energy, and to further expand Russian presence in the region.

Sun, 01/08/2012 - 23:47 | 2045642 CompassionateFascist
CompassionateFascist's picture

US fuckup in Iraq completed a "Shi'ite Crescent" running from Teheran to Baghdad to Damascus to Hezbollah in south Lebanon. As part of the run-up to the Iran War, Isramerica is trying to cut the military supply line running from Iran to Hezbollah by taking down Assad's regime; if Assad falls, his Alawite-Shia regime will be replaced by a Sunni (Moslem Brotherhood) gang...still hostile to Israel, but now hostile to Iran as well. Wheels w/in wheels.  Russian warships tho, are preventing Isramerica, alias "Nato", from doing a Libya on Syria. In Medvedev's words, "America keeps pushing us...we are going to push back." We are rapidly approaching a Summer 1914 scenario. Hope somebody blinks. Meanwhile, invest in lead.

Mon, 01/09/2012 - 00:11 | 2045741 Tompooz
Tompooz's picture

 

Russia being what it is now, somebody has to make money out of its foreign policy.

Invest in what Russian oligarchs are investing in.

Mon, 01/09/2012 - 00:53 | 2045825 CompassionateFascist
CompassionateFascist's picture

I invest in what helps me even the odds when AT&F comes calling: lead. I don't expect to survive; I do hope to get at least one of them.  

Mon, 01/09/2012 - 09:10 | 2046207 Colonial Intent
Colonial Intent's picture

CompassionateFascist

A force multiplier like yourself taking ONLY one of them with you?

Mon, 01/09/2012 - 14:33 | 2047180 CompassionateFascist
CompassionateFascist's picture

Just being realistic. If each Patriot renders harmless (at least) one ATF guy when they come to gun-grab, the regime is going to run out of enforcers way before we run out of Patriots. Or, we can all go over to Ann Banhardt's place and do the Concord Bridge thing. Maybe that is a better idea.

Mon, 01/09/2012 - 08:04 | 2046124 Element
Element's picture

A very valuable near-future bulk arms buyer who will provide accomodation to trainers, and advisors, and nice docks for port visits. Russia is going back into the client-state business, because it buys strategic leverage, profile, support and scale. Russia tried staying home but it doesn't work, US/NATO took full advantage.

The end of the cold war was a major change.

This is another.

Power loves a vacuum ... and US/NATO have begun to fall off their perch.

Sun, 01/08/2012 - 16:50 | 2044846 lizzy36
lizzy36's picture

Russia would love to start anything that pushes the oil above $125. Breakeven for Russia is around $100. Citi estimated that every $10 decline in the price of crude reduces the Kremlins revenue by $20B.

Why the hell would anyone want Rial is beyond me? Currency lost 20% of its value last week and according to Reuters the ccountry insitutued new fx trading laws today:

TEHRAN (Reuters) - Iran's parliament cracked down on unofficial money traders Sunday after new U.S. sanctions helped trigger a currency crash as Iranians rushed to buy dollars.

The rial lost about 20 percent of its value against the dollar before the central bank intervened last week to try to stem further losses by injecting hard currency into the market.

At a special parliamentary debate on the currency crisis, lawmakers passed a measure imposing legal penalties on touts who sell foreign currencies outside official exchange offices and banks where rates can be subjected to government controls.

Sun, 01/08/2012 - 17:01 | 2044883 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Considering that China, Japan, India, Russia, and Iran are not trading in dollars anymore maybe they think the dollar is just as worthless.  On a relative basis, 20% is a lot in a week, but the Fed has lost 98% of the dollars value, it has zero value intrinsically, and the Fed will debase it more.

Sun, 01/08/2012 - 20:29 | 2044931 Manthong
Manthong's picture

The fact that rials, seashells or tulips are used does not matter to Iran or Russia.

The rials from Iran becomes oil to Russia and the rubles brom Russia become technology, weapons and support resources.

Iran wants the weapons and technology and Russia can always stockpile or flip the oil if it does not need it.

What's important (and dangerous) is that it ain't the dollar.

This is scary stuff.

Sun, 01/08/2012 - 21:25 | 2045409 Haddock
Haddock's picture

Russia is the Worlds largest oil producer. Why would they buy from Iran?

This is pure "sphere of influence" posturing, letting the Yanks know they should back off...

Sun, 01/08/2012 - 18:44 | 2045118 DosZap
DosZap's picture

Lennon,

Seems like we could really cause some second thoughts on this to me, w/out lifting ONE finger.

ANYONE have a CLUE how many American jobs have been outsourced to India, and China?.

I mean, aside from manufacturing, the technical call centers?, AT & T, Net Gear,HP,Dell,MicroSoft, etc,et,c,etc, .

Ultimatum, we WILL be bringing these jobs back, since you have sold us out................why should we feed your people and economies, while you speed up the demise of Americas?.

Sun, 01/08/2012 - 20:20 | 2045300 Advoc8tr
Advoc8tr's picture

You make it sound like the jobs were outsourced as a kind of benevolent contribution to their wellbeing?  It was done solely to maximise profits and thus if all tose jobs are repatriated profitability tanks and companies fold. I mean if they could why haven't they already done so?  The opposite is true. If China somehow bans the outsourcing of jobs from the West into China it is the West who would suffer greater consequences IMO.

Fri, 03/09/2012 - 07:50 | 2046201 Colonial Intent
Colonial Intent's picture

.

Wed, 01/11/2012 - 12:30 | 2054785 matrix2012
matrix2012's picture

DosZap, are you or any other american ready to be paid half a dollar per hour (or even less) to do all the labour to stay competitive? :D

Sun, 01/08/2012 - 17:14 | 2044915 GeneMarchbanks
GeneMarchbanks's picture

That 20% loss will probably be a 60% gain once the greenback is fully de-pegged. Coincidentally, US will get al the inflation they've been looking for plus some. It's a win-win for all.

Fri, 03/09/2012 - 07:50 | 2046187 Colonial Intent
Colonial Intent's picture

.

Sun, 01/08/2012 - 16:59 | 2044871 valley chick
valley chick's picture

but ..but...football season is still going...surely cannot disturb the sheeple with this talk of WW3.  Plus the dollar still has to buy the comfy food while watching the game. 

Sun, 01/08/2012 - 19:36 | 2045215 HungrySeagull
HungrySeagull's picture

I see stadiums as a extremely target rich environment to our enemies. I dont go, only watch on TV.

Fri, 03/09/2012 - 07:48 | 2046179 Colonial Intent
Colonial Intent's picture

.

Sun, 01/08/2012 - 17:00 | 2044875 TheGardener
TheGardener's picture

Stay calm, just some lost empires rattling.

Tremors to get used to. Hard to say who is on the loose though. At first bet it should be us of course, but who is to be provocated for NO REASON ! Well, let`s not talk about it, but they might have asked about it after all ?

Make no war unless it is timed. Check...

Sun, 01/08/2012 - 17:05 | 2044892 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

STT and BK are about to get thrown under the bus because they have raped pension plans for decades.  Hedge funds and Major Banking Houses are bankrupt because they leveraged up too high into the Fiat Ponzi.  Unemployment is still at Great Depression levels.  Oil production has peaked.

There isn't any reason for the Idiots that Be to go to war?  Their system has failed; they are desperate.  They have little choice but to go for broke.  And besides, they all have bunkers in the mountains for when SHTF.

Sun, 01/08/2012 - 17:03 | 2044886 FoieGras
FoieGras's picture

It's absolutely irrelevant if Iran and Russia drop the Dollar for factoring their trade. Non-event. We've heard similar stories between Brazil and China, China and Japan etc. There will be 100s of similar stories in the future, all of them non-events.

Sun, 01/08/2012 - 18:21 | 2045071 logically possible
logically possible's picture

Foie,

Sarc., right?

Sun, 01/08/2012 - 18:23 | 2045076 BigJim
BigJim's picture

100s of similar stories, all of them non-events? Individually, yes, they're non-events; collectively they will be earth-shaking to people holding USDs and USD-denominated securities.

Sun, 01/08/2012 - 18:46 | 2045122 Urban Redneck
Urban Redneck's picture

Russia - EU energy settlements will not be a non-event

 

Sun, 01/08/2012 - 23:40 | 2045667 d_senti
d_senti's picture

It makes me sad that such obvious sarcasm is missed on everyone unless you slap a sarc tag on it. Sometimes the sarc tag kills the fun, like saying "joking" or "that was irony" or "I made a pun."

Mon, 01/09/2012 - 11:19 | 2046496 my puppy for prez
my puppy for prez's picture

But the written word does not allow for voice or facial inflection...and I have read some much more ignorant posts here that were not using sarcasm.  Discernment of intent is crippled by the knowledge of pervasive insoucience among the populace! 

Sun, 01/08/2012 - 17:04 | 2044891 jose.six.pack
jose.six.pack's picture

WWQE3!

Sun, 01/08/2012 - 17:05 | 2044893 tocointhephrase
tocointhephrase's picture

WW4, got sticks and stones?

Sun, 01/08/2012 - 17:07 | 2044897 navy62802
navy62802's picture

Bomb Bomb Bomb ... Bomb Bomb Iran ... (courtesy of John McCain, featuring the Beach Boys):

http://www.youtube.com/watch?v=RWAt7jghB-8&feature=related

Sun, 01/08/2012 - 17:07 | 2044900 Corn1945
Corn1945's picture

It's in Iran's best interest to get nuclear weapons as fast as possible. It's probably not in everyone else's best interest but that's a separate conversation. 

China could win out big here if they side with Iran in exchange for some kind of long-term oil contract. 

Sun, 01/08/2012 - 18:30 | 2045083 cranky-old-geezer
cranky-old-geezer's picture

 

 

Iran doesn't need one single nuclear weapon.

Russia and China have more than enough :)

Sun, 01/08/2012 - 19:34 | 2045211 DosZap
DosZap's picture

cranky-old-geezer

Yep, and the MAAD concept is still in place, NO WINNERS.

Sun, 01/08/2012 - 20:35 | 2045326 thatthingcanfly
thatthingcanfly's picture

Mothers Against Assholes Driving?

Sun, 01/08/2012 - 21:17 | 2045396 Hey Assholes
Hey Assholes's picture

Hey, I resemble that remark!

Sun, 01/08/2012 - 22:02 | 2045469 gravedestruction
gravedestruction's picture

Moe! Larry! Cheese!

Sun, 01/08/2012 - 22:33 | 2045533 CrockettAlmanac.com
CrockettAlmanac.com's picture

Niagara Falls!

Sun, 01/08/2012 - 22:45 | 2045562 gravedestruction
gravedestruction's picture

Slowly I turned!

Mon, 01/09/2012 - 02:58 | 2045992 kiwidor
kiwidor's picture

I drive drunk for sport.  If one conditioned oneself for drifting with a V8 back when one was 15, one has built in safety measures.  One did not hit lamp posts , nor did one take out letterboxes because in my time, the judge did not agree with "but i was drunk, yerrhonnuh" as a defence.  nature takes out those who can't balance with it. you're all fucken wimps.

Mon, 01/09/2012 - 07:40 | 2046109 TheFourthStooge-ing
TheFourthStooge-ing's picture

Just remember to hold a hand over one eye if you're seeing double.

(This trick only works for drunk driving. It won't help if you're driving after taking a few hits of Snoopy blotter.)

 

Sun, 01/08/2012 - 20:37 | 2045332 cranky-old-geezer
cranky-old-geezer's picture

 

 

Perhaps our psychotic leaders will remember that and back away from Iran before they bring million degree nuclear fireballs down on everyone.

Mon, 01/09/2012 - 03:00 | 2045993 kiwidor
kiwidor's picture

not unless you shoot them first, you old prick.  want some more pussy?  shoot a politician or a revenuer or a citizen informant.  don't bitch to us about it. yes, i would .  and sleep soundly.

Sun, 01/08/2012 - 17:07 | 2044901 walcott
walcott's picture

The ineveiable is finally here. Been hearing about Russia and China my whole life and Iran too.

Charlie don't surf - fuck them!

Sun, 01/08/2012 - 17:10 | 2044907 gina distrusts gov
gina distrusts gov's picture

Holding dollars to be treason in countries tired of the US bull sh*t ?

and good luck to any countries getting there gold back from London or the u.s. the ownership is scrambled worse than a mortgage in the us

Sun, 01/08/2012 - 17:11 | 2044908 JustObserving
JustObserving's picture

 

6 hours ago India to pay for Iran crude in rupees
In the wake of the US decision to impose fresh sanctions against the Islamic Republic that would target its oil exports, India announces plans to pay for the Iranian crude it imports in rupees.

A senior Indian government official, speaking on condition of anonymity, said the issue will be addressed when a multi- disciplinary team visits Tehran on January 16 to discuss uninterrupted supply from the major oil producer, the Press Trust of India reported on Sunday.  

Under the proposal, the National Iranian Oil Company (NIOC) will open a rupee account with Indian banks, and can use the money to purchase non-strategic commodities like railway imports.

India satisfies about three-quarters of its crude demands through imports; and Iran is its second-largest supplier after Saudi Arabia.

The South Asian country currently pays USD 1 billion every month to Iran for the 370,000 barrels per day of crude oil it purchases from the Islamic Republic. India uses Turkey as a conduit in order to pay for Iranian crude.

http://www.presstv.ir/detail/219964.html

 

Sun, 01/08/2012 - 20:24 | 2045316 steve from virginia
steve from virginia's picture

Too much hysteria.

Saber rattling is designed to push up price of crude: customers are broke, dollars (or other trading currencies) are hard to come by. Greece cannot afford to buy fuel. What currency can the Greeks come up with that will allow them to buy fuel?

There is nothing. They have nothing to trade. They are broke. So is Portugal, Ireland, UK, Spain, Italy: soon comes Japan, India ... China's turn will come. The United States.

Iran would be idiotic to close Hormuz b/c it's own export trade emerges from the Strait of Hormuz.

If dollars are so undesirable, howcom the Iran rial lost a fifth of its worth against the dollar last week?

Sanctions against Iran are theater. Iran can sell to anyone who does not trade by way of US banks or clears funds through the Federal Reserve.

China has dollars which it trades for crude oil, not only with Iran but with a score of other oil producers.

Dollar dumping by 'Russians' is silly when Russian big shots are buying houses in Miami and Palm Beach w/ dollars. Chinese are buying houses outside of China with dollars. The US economy isn't dying this week b/c of flight out of euros into dollars and dollar-denominated securities (like Treasuries). Despite the war-cries the price of crude is where it was at the beginning of 2011, $20 below the spike price in April of $128.barrel:

http://futures.tradingcharts.com/chart/BC/W?anticache=1326068133

Oil costs +$100 to bring to market, when the price declines below that level -- because customers are broke -- there is no market and the expensive oil is shut in. Shutting Hormuz might spike the prices a bit but doing so won't create more credit -- what is needed to support higher prices. Instead, halting oil flow will cause credit to crash along with oil prices, far below the cost of production.

BTW: shortages are coming, when they arrive they will be permanent. Oil is out there, in the world, but it may as well be on Mars as we cannot afford it.

Sun, 01/08/2012 - 23:55 | 2045700 CompassionateFascist
CompassionateFascist's picture

Fundamentally Steve, it's not about Oil. It's about keeping Israel on the map. For America's ZOG, this is the sine qua non of all policy. "Rationality" is no longer a factor. Invest in lead.

Mon, 01/09/2012 - 03:01 | 2045994 kiwidor
kiwidor's picture

russia doesn't want the bigshots, dumbass.  they're pleased to be rid of them.

Mon, 01/09/2012 - 10:24 | 2046355 GeneMarchbanks
GeneMarchbanks's picture

Exactly. Putin's Russia gave an ultimatum: invest here or leave. Some left others stayed. Whoever stayed had to play ball.

Sun, 01/08/2012 - 20:38 | 2045333 sushi
sushi's picture

Obummer has just told the world to stop using the dollar. So very, very, very smart.

Sun, 01/08/2012 - 17:13 | 2044911 cherry picker
cherry picker's picture

Think about this.  Many people in the world blame America for their troubles due to the sub prime mess and subsequent shenanigans of a few years past.  The fact that the wars, Gitmo and secret torture prisons existed did not go well with many.

The only reason the Fed was able to print its way out was because of the green back's reserve status and the inflation was spread out where the money went.

If less transactions are not being US dollar based, there is no longer a requirement for these countries to use it, probably in a year or so we will feel it here in fuel and food prices going through the roof.

I may be wrong, I hope I am, but that is my take on it.

Sun, 01/08/2012 - 18:27 | 2045082 BigJim
BigJim's picture

Indeed! Triffin's Dilemma gonna come home to daddy.

Sun, 01/08/2012 - 19:32 | 2045207 conork
conork's picture

And while its somewhat slow motion, the race to drop the dollar ahead of the other sucker will pick up in pace!

Mon, 01/09/2012 - 11:12 | 2046479 my puppy for prez
my puppy for prez's picture

Isn't it obvious that the stage is being rapidly set for a new global trading currency?

the IMF must be so excited!

Sun, 01/08/2012 - 17:13 | 2044912 valkir
valkir's picture

Whoever survive after WWIII should be prepare for the next one.Go long for bow and arrows.

Sun, 01/08/2012 - 17:17 | 2044924 ozziindaus
ozziindaus's picture

Go long deep into the southern hemisphere ;)

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