CURRENCY WAR: IRAN

Muckracker Report: The Approaching War with Iran

January 4, 2006 – On November 10th 2005, the Muckraker Report published an article that described one of the unspoken reasons why the United States had to invade Iraq; to liberate the U.S. dollar in Iraq so that Iraqi oil could once again be purchased with the petrodollar. See The liberation of the U.S. Dollar in Iraq

In November 2000, Iraq stopped accepting U.S. dollars for their oil. Counted as a purely political move, Saddam Hussein switched the currency required to purchase Iraqi oil to the euro. Selling oil through the U.N. Oil for Food Program, Iraq converted all of its U.S. dollars in its U.N. account to the euro. Shortly thereafter, Iraq converted $10 billion in their U.N. reserve fund to the euro. By the end of 2000, Iraq had abandoned the U.S. dollar completely.

Two months after the United States invaded Iraq, the Oil for Food Program was ended, the country’s accounts were switch back to dollars, and oil began to be sold once again for U.S. dollars. No longer could the world buy oil from Iraq with the euro. Universal global dollar supremacy was restored. It is interesting to note that the latest recession that the United States endured began and ended within the same timeframe as when Iraq was trading oil for euros. Whether this is a coincidence or related, the American people may never know.

In March 2006, Iran will take Iraq’s switch to the petroeuro to new heights by launching a third oil exchange. The Iranians have developed a petroeuro system for oil trade, which when enacted, will once again threaten U.S. dollar supremacy far greater than Iraq’s euro conversion. Called the Iran Oil Bourse, an exchange that only accepts the euro for oil sales would mean that the entire world could begin purchasing oil from any oil-producing nation with euros instead of dollars. The Iranian plan isn’t limited to purchasing one oil-producing country’s oil with euros. Their plan will create a global alternative to the U.S. dollar. Come March 2006, the Iran Oil Bourse will further the momentum of OPEC to create an alternate currency for oil purchases worldwide. China, Russia, and the European Union are evaluating the Iranian plan to exchange oil for euros, and giving the plan serious consideration.