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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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.

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!

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)

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. 

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.

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)

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.

The Big Ching-aso's picture



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

Taint Boil's picture

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

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.


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.


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.


Teamtc321's picture

Copy and paste something new bitch lord. 

Lower Class Elite's picture

He made it boldfaced and everything!

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.


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.

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.

pkea's picture

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

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.  

tj3's picture

ya the 0.05 percent tend to do that

Bananamerican's picture

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

smawrt lik me

Sudden Debt's picture

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

Schmuck Raker's picture

Vietnam. We haven't bombed them since forever.

CPL's picture

Might as well put it on the list.


Green Leader's picture

Yes indeed, Africa.

Look at the magician's other hand.

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

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.

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.

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. 

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').

Campagnolo's picture

mexico and central american countries

tocointhephrase's picture

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

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!

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

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?


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!

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.


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. 

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. 

xela2200's picture

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

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

disabledvet's picture

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

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?