War on Iran please! replied by Acidshuriken @ Tue, 05 Aug 2008 19:03:15 +0800

Acidshuriken — Tue, 05 Aug 2008 19:03:15 +0800

speculators blame high demand by consumers, consumer blame speculation. finger pointing. i think combination of both.

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 18:22:50 +0800

Poh Ah Pak — Tue, 05 Aug 2008 18:22:50 +0800

But USA consumes the most oil.

What about the speculators?

They also contribute to high oil price.

Why Oil Prices Are So High

http://www.counterpunch.org/roberts06112008.html

http://www.npr.org/templates/story/story.php?storyId=90041682

PERHAPS 60% OF TODAY'S OIL PRICE IS PURE SPECULATION

http://www.engdahl.oilgeopolitics.net/Financial_Tsunami

http://www.engdahl.oilgeopolitics.net/Financi

War on Iran please! replied by xtreyier @ Tue, 05 Aug 2008 18:11:05 +0800

xtreyier — Tue, 05 Aug 2008 18:11:05 +0800

Originally posted by Poh Ah Pak:

But that is a flawed logic xtreyier.

Why don't you stage protest against PAP regime to protest oil price hike?

Eh, le siao ah?

PAP is not OPEC or Iran. got no oil.

Want to fight, fight the root of the problem lah! Me no study also not so stupid. Talk no use now! Declare WAR ON IRAN LEADERSHIP!

ps. usa or israel not singapore. They also nebbe sell oil. They nebbe bully me or my hyah tee, why i care about them?

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 18:06:16 +0800

Poh Ah Pak — Tue, 05 Aug 2008 18:06:16 +0800

No beat them, they no grow up. Behave like small little bullies.

What about USA and Israel?

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 18:05:35 +0800

Poh Ah Pak — Tue, 05 Aug 2008 18:05:35 +0800

Then who control oil prices? Opec cartel, which Iran block other members' intention to increase output, making oil expensive! Bloody hell!

But that is a flawed logic xtreyier.

Why don't you stage protest against PAP regime to protest oil price hike?

War on Iran please! replied by xtreyier @ Tue, 05 Aug 2008 17:57:38 +0800

xtreyier — Tue, 05 Aug 2008 17:57:38 +0800

Originally posted by Poh Ah Pak:

What is your view of PAP regime rasing ERP charges xtreyier?

Poh, do i look like i bother? They govt can put up ERP gantries every 5 metres for all i care! I no drive car. Even my bus fare also increasing. The bus uncle say petrol price rise, so who else is producing petrol? Petrol companies lah! Then who control oil prices? Opec cartel, which Iran block other members' intention to increase output, making oil expensive! Bloody hell!

Poh, stop talking about politics please! This thread is about oil price increase and the solution to stop it - WAR WITH THE IRANIAN LEADERSHIP!

No beat them, they no grow up. Behave like small little bullies. They no meet me and my starving hyah tee (bros) yet.

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 17:53:38 +0800

Poh Ah Pak — Tue, 05 Aug 2008 17:53:38 +0800

Mana tahan!!!!

I think it is time for you to join SDP's Tak Boleh Tahan campaign and vent your frustration against PAP regime.

http://yoursdp.org/index.php/component

You anger is misdirected against Iran.

PAP is your real target.

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 17:48:55 +0800

Poh Ah Pak — Tue, 05 Aug 2008 17:48:55 +0800

And bastard inhuman Iran raise the price of oil which in turn raise price of everything except my salary.

There is no evidence that proves that.

What is your view of PAP regime rasing ERP charges xtreyier?

War on Iran please! replied by xtreyier @ Tue, 05 Aug 2008 17:36:12 +0800

xtreyier — Tue, 05 Aug 2008 17:36:12 +0800

Originally posted by Poh Ah Pak:

It seems you don't care about the political situation in Singapore but care about Iran.

what about USA killing Iraqis and Israel killing palestinians xtreyier?

I don't care about anything except the grumbling of my stomach. And bastard inhuman Iran raise the price of oil which in turn raise price of everything except my salary.

My Kopi-0 went up 10cts, you know?!!!

And my chai png ( vege rice ) shot up to $3.50!!! Mana tahan!!!!

WAR WITH THE IRANIAN LEADERSHIP!!!!!!!

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 16:43:06 +0800

Poh Ah Pak — Tue, 05 Aug 2008 16:43:06 +0800

It seems you don't care about the political situation in Singapore but care about Iran.

what about USA killing Iraqis and Israel killing palestinians xtreyier?

War on Iran please! replied by xtreyier @ Tue, 05 Aug 2008 16:38:58 +0800

xtreyier — Tue, 05 Aug 2008 16:38:58 +0800

Originally posted by Poh Ah Pak:

Even if autocratic rule?

You are a fighter or not?

Want to fight Iran but passive towards PAP regime.

I confused now by you xtreyier.

Autocratic? Totalitarian? Facists? Whatever?

what do i care?! I no study wan. Only work, work, work.

I only worry where my next meal comming from. And it sure as hell aint comming from Iran.

See the Iran leadership one time, beat them up one time. That's all i know. For making me and others in the world suffer by driving up oil prices, and wanna cold bloodedly murder Israeli man, woman and children.

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 16:23:02 +0800

Poh Ah Pak — Tue, 05 Aug 2008 16:23:02 +0800

Why fight against my own society and its rules?

Even if autocratic rule?

You are a fighter or not?

Want to fight Iran but passive towards PAP regime.

I confused now by you xtreyier.

War on Iran please! replied by xtreyier @ Tue, 05 Aug 2008 16:07:29 +0800

xtreyier — Tue, 05 Aug 2008 16:07:29 +0800

Originally posted by Poh Ah Pak:

I don't think PAP regime would support SAF go and attack Iran or carry out guerrilla operations.

Do you have plans to stage protests outside Iranian embassy?

protest is passe. Grow up and move with the times. Why do we pay high salaries to MPs for? Why do we have rule of law? If what i proposed has merit and convinces my MPs, he will debate it in parliament on my behalf, as my elected representative. If my proposal is considered madness, then so be it. I will let it rest. I presume they must have a better solution, afterall, they too suffer the effects of high price of oil, more so as elected officials. Why fight against my own society and its rules?

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 15:16:24 +0800

Poh Ah Pak — Tue, 05 Aug 2008 15:16:24 +0800

I don't think PAP regime would support SAF go and attack Iran or carry out guerrilla operations.

Do you have plans to stage protests outside Iranian embassy?

War on Iran please! replied by xtreyier @ Tue, 05 Aug 2008 15:09:30 +0800

xtreyier — Tue, 05 Aug 2008 15:09:30 +0800

Originally posted by Poh Ah Pak:

So xtreyier, you given up your idea of fighting Iran?

Previously you said you were willing to fight Iran.

I had always maintained that either i fight with my country's blessing or none at all. I am no lone ranger or underwear worn outside leotard hero wannabe.

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 14:42:06 +0800

Poh Ah Pak — Tue, 05 Aug 2008 14:42:06 +0800

So xtreyier, you given up your idea of fighting Iran?

Previously you said you were willing to fight Iran.

War on Iran please! replied by xtreyier @ Tue, 05 Aug 2008 14:30:14 +0800

xtreyier — Tue, 05 Aug 2008 14:30:14 +0800

Originally posted by Poh Ah Pak:

xtreyier, are you going to train with the CIA as guerrilla against Iran?

Poh, I may be driven to madness from starvation by Iran's leaders selfish and despicable aims to use oil to force the world to agree to them manufacturing nuclear weapons and allowing them to murder every Israeli man, women and child, but i am not stupid enough to surrender my loyalty to my own flag, the nation i was born in and responsibilities to my own people.

Only our people can say yes or no, then it will be a yes to wipe the iranian leadership, or if no, suffer the effects of high oil prices together as one, holding my peace forevermore.

War on Iran please! replied by Poh Ah Pak @ Tue, 05 Aug 2008 13:58:00 +0800

Poh Ah Pak — Tue, 05 Aug 2008 13:58:00 +0800

xtreyier, are you going to train with the CIA as guerrilla against Iran?

War on Iran please! replied by xtreyier @ Tue, 05 Aug 2008 13:38:39 +0800

xtreyier — Tue, 05 Aug 2008 13:38:39 +0800

Originally posted by Gosu.:

A Nightmare for the US: Why the Dollar Bubble is about to Burst

The Voice http://www.scottishsocialistvoice.net/back%20issues%2006/issue%20264.htm (issue 264 - 11th May 2006 page 8) ran an article beginning, 'Iran has really gone and done it now. No, they haven't sent their first nuclear sub in to the Persian Gulf. They are about to launch something much more deadly -- next week the Iran Bourse will open to trade oil, not in dollars but in Euros' This apparently insignificant event has consequences far greater for the US people, indeed all for us all, than is imaginable.

Currently almost all oil buying and selling is in US-dollars through exchanges in London and New York. It is not accidental they are both US-owned.

The Wall Street crash in 1929 sparked off global depression and World War II. During that war the US supplied provisions and munitions to all its allies, refusing currency and demanding gold payments in exchange.

By 1945, 80% of the world's gold was sitting in US vaults. The dollar became the one undisputed global reserve currency -- it was treated world-wide as `safer than gold'. The Bretton Woods agreement was established.

The US took full advantage over the next decades and printed dollars like there was no tomorrow. The US exported many mountains of dollars, paying for ever-increasing amounts of commodities, tax cuts for the rich, many wars abroad, mercenaries, spies and politicians the world over. You see, this did not affect inflation at home! The US got it all for free! Well, maybe for a forest or two.

Over subsequent decades the world's vaults bulged at the seams and more and more vaults were built, just for US dollars. Each year, the US spends many more dollars abroad that at home. Analysts pretty much agree that outside the US, of the savings, or reserves, of all other countries, in gold and all currencies -- that a massive 66% of this total wealth is in US dollars!

In 1971 several countries simultaneously tried to sell a small portion of their dollars to the US for gold. Krassimir Petrov, (Ph. D. In Economics at Ohio University) recently wrote http://news.goldseek.com/GoldSeek/1137510262.php , 'The US Government defaulted on its payment on August 15, 1971. While popular spin told the story of `severing the link between the dollar and gold', in reality the denial to pay back in gold was an act of bankruptcy by the US Government.' The 1945 Bretton Woods agreement was unilaterally smashed.

The dollar and US economy were on a precipice resembling Germany in 1929. The US now had to find a way for the rest of the world to believe and have faith in the paper dollar. The solution was in oil, in the petrodollar. The US viciously bullied first Saudi Arabia and then OPEC to sell oil for dollars only -- it worked, the dollar was saved. Now countries had to keep dollars to buy much needed oil. And the US could buy oil all over the world, free of charge. What a Houdini for the US! Oil replaced gold as the new foundation to stop the paper dollar sinking.

Since 1971, the US printed even more mountains of dollars to spend abroad. The trade deficit grew and grew. The US sucked-in much of the world's products for next to nothing. More vaults were built.

Expert, Coilin Nunan, wrote in 2003 (http://www.feasta.org/documents/review2/nunan.htm) , 'The dollar is the de facto world reserve currency: the US currency accounts for approximately two thirds of all official exchange reserves. More than four-fifths of all foreign exchange transactions and half of all world exports are denominated in dollars. In addition, all IMF loans are denominated in dollars.'

Dr Bulent Gukay of Keele University recently wrote, 'This system of the US dollar acting as global reserve currency in oil trade keeps the demand for the dollar `artificially' high. This enables the US to carry out printing dollars at the price of next to nothing to fund increased military spending and consumer spending on imports. There is no theoretical limit to the amount of dollars that can be printed. As long as the US has no serious challengers, and the other states have confidence in the US dollar, the system functions.'

Until recently, the US-dollar has been safe. However, since 1990 Western Europe has been busy growing, swallowing up central and Eastern Europe. French and German bosses were jealous of the US ability to buy goods and people the world over for nothing. They wanted a slice of the free cake too. Further, they now had the power and established the Euro in late 1999 against massive US-inspired opposition across Europe, especially from Britain - paid for in dollars of course. But the Euro succeeded.

Only months after the euro-launch, Saddam's Iraq announced it was switching from selling oil in dollars only, to euros only -- breaking the OPEC agreement. Iran, Russia, Venezuela, Libya, all began talking openly of switching too -- were the floodgates about to be opened?

Then aeroplanes flew into the twin-towers in September 2001. Was this another Houdini chance to save the US (petro) dollar and the biggest financial/economic crash in history? War preparations began in the US. But first war-fever had to be created -- and truth was the first casualty. Other oil producing countries watched-on. In 2000 Iraq began selling oil in euros. In 2002, Iraq changed all their petro-dollars in their vaults into euros. A few months later, the US began their invasion of Iraq.

The whole world was watching: very few aware that the US was engaging in the first oil currency, or petrodollar war. After the invasion of Iraq in March 2003, remember, the US secured oil areas first. Their first sales in August were, of course, in dollars, again. The only government building in Baghdad not bombed was the Oil Ministry! It does not matter how many people are murdered -- for the US, the petrodollar must be saved as the only way to buy and sell oil -- otherwise the US economy will crash, and much more besides.

In early 2003, Hugo Chavez, President of Venezuela talked openly of selling half of its oil in euros (the other half is bought by the US). On 12 April 2003, the US-supported business leaders and some generals in Venezuela kidnapped Chavez and attempted a coup. The masses rose against this and the Army followed suit. The coup failed. This was bad for the US.

In November 2000 the euro/dollar was at $0.82 dollars, its lowest ever, and still diving, but when Iraq started selling oil in euros, the euro dive was halted. In April 2002 senior OPEC reps talked about trading in euros and the euro shot up. In June 2003 the US occupiers of Iraq switched trading back to dollars and the euro fell against the dollar again. In August 2003 Iran starts to sell oil in euros to some European countries and the euro rises sharply. In the winter of 2003-4 Russian and OPEC politicians talked seriously of switching oil/gas sales to the euro and the euro rose. In February 2004 OPEC met and made no decision to turn to the euro -- and yes, the euro fell against the dollar. In June 2004 Iran announced it would build an oil bourse to rival London and New York, and again, the euro rose. The euro stands at $1.27 and has been climbing of late.

But matters this month became far, far worse for the US dollar. On 5th May Iran registered its own Oil Bourse, the IOB. Not only are they now selling oil in euros from abroad -- they have established an actual Oil Bourse, a global trading centre for all countries to buy and sell their oil!

In Chavez's recent visit to London; he talked openly about supporting the Iranian Oil Bourse, and selling oil in euros. When asked in London about the new arms embargo imposed by the US against Venezuela, Chavez prophetically dismissed the US as 'a paper tiger'.

Currently, almost all the world's oil is sold on either the NYMEX, New York Mercantile Exchange, or the IPE, London's International Petroleum Exchange. Both are owned by US citizens and both sell and buy only in US dollars. The success of the Iran Oil Bourse makes sense to Europe, which buys 70% of Iran's oil. It makes sense for Russia, which sells 66% of its oil to Europe . But worse for the US, China and India have already stated they are very interested in the new Iranian Oil Bourse.

If there is a tactical-nuclear strike on - deja-vu - `weapons of mass destruction' in Iran, who would bet against a certain Oil Exchange and more, being bombed too?

And worse for Bush. It makes sense for Europe, China, India and Japan-- as well as all the other countries mentioned above -- to buy and sell oil in Euros. They will certainly have to stock-up on euros now, and they will sell dollars to do so. The euro is far more stable than the debt-ridden dollar. The IMF has recently highlighted US economic difficulties and the trade deficit strangling the US-- there is no way out.

The problem for so many countries now is how to get rid of their vaults full of dollars, before it crashes? And the US has bullied so many countries for so many decades around the world, that many will see a chance to kick the bully back. The US cannot accept even 5% of the world's dollars -- it would crash the US economy dragging much of the world with it, especially Britain.

To survive, as the Scottish Socialist Voice article stated, 'the US, needs to generate a trade surplus to get out of this one. Problem is it can't.' This is spot on. To do that they must force US workers into near slavery, to get paid less than Chinese or Indian workers. We all know that this will not happen.

What will happen in the US? Chaos for sure. Maybe a workers revolution, but looking at the situation as it is now, it is more likely to be a re-run of Germany post-1929, and some form of extreme-right mass movement will emerge.

Does Europe and China/Asia have the economic independence and strength to stop the whole world's economies collapsing with the US? Their vaults are full to the brim with dollars.

The US has to find a way to pay for its dollar-imperialist exploitation of the world since 1945. Somehow, eventually, it has to account for every dollar in every vault in the world.

Bombing Iran could backfire tremendously. It would bring Iran openly into the war in Iraq, behind the Shiite majority. The US cannot cope even now with the much smaller Iraqi insurgency. Perhaps the US will feed into the Sunni v Shiite conflict and turn it into a wider Middle-East civil-war. However, this is so dangerous for global oil supplies. Further, they know that this would be temporary, as some country somewhere else, will establish a euro-oil-exchange, perhaps in Brussels.

There is one `solution' -- scrap the dollar and print a whole new currency for the US. This will destroy 66% of the rest of the world's savings/reserves in one swoop. Imagine the implications? Such are the desperate things now swimming around heads in the White House, Wall Street and Pentagon.

Another is to do as Germany did, just before invading Poland in 1938. The Nazis filmed a mock Polish Army attack on Germany, to win hearts and minds at home. But again, this is a finger in the dam. So, how is the US going to escape this time? The only global arena of total superiority left is military. Who knows what horrors lie ahead. A new world war is one tool by which the US could discipline its `allies' into keeping the dollar in their vaults.

The task of socialists today is to explain to as may as possible, especially our class, that the coming crisis belongs purely to capitalism and (dollar) imperialism. Not people of other cultures, not Islam, not the axis of evil or their so-called WMDs. Their system alone is to blame.

The new Iranian Oil Bourse, the IOB, is situated in a new building on the free-trade-zone island of Kish, in the Persian Gulf. Its computers and software are all set to go. The IOB was supposed to be up and running last March, but many pressures forced a postponement. Where the pressure came from is obvious. It was internationally registered on 5th May and supposed to open mid-May, but its opening was put off, some saying the oil-mafia was involved, along with much international pressure. Just google `pertroeuro' http://www.google.com/search?hl=en&q=petroeuro&btnG=Search , and the story lies before you.

From now on, anyone in the know will wake up every morning and, even before coffee, will check out the latest exchange rate between the euro and dollar.

The story explains itself.

What makes one accept a piece of paper in return for goods or services rendered?

While it is impossible to lug bags of gold to buy TV or computers, most manufacturers and retailers would accept that piece of paper in return for their efforts. It is all about belief and confidence. Confidence that, that piece of paper is backed by the value it is printed with, based on the issuer's deposits of wealth.

And wealth is measured in either gold or earnings.

The US economy

In our world, USA is the strongest and richest country in the world since the 1900s. They have natural resources and coupled with an intelligent, hardworking and resourceful people situated together united within a continent, with states/provinces of several time zones.

In the late 1940s, it was this continent and people whom had provided the resources for the reconstruction of the world, ravaged by war started from a racist madman. It was also this nation that upheld freedom, equality and a need to back up the value of the paper printed in exchange for goods and services by gold.

It served a purpose well till the late 1970s. Democracy is nothing more a kitchen filled with cooks, each with its own opinions on how the porridge should be cooked, resulted in frightening opinionated brew. Thus, the agreement to back currencies by gold was dissolved, but instead used a floating rate mechanism.

If US had printed 'banana notes' as alledged, they would have been out of debt a long time ago, or the dollar similar in value to banana republics in Africa! But it was not. The US dollar is still and strongly backed by its wealth - its people.

Habits die hard, and as such, the common people still have faith in a system that had served each other well. The US dollar was supreme, not because anyone was forced with a gun to use it, but because of faith and confidence in the american people.

Faith that, that resourceful and freedom seeking people will continue to fund the world. Faith that they have the resources to back the dollar. Factual believe that even if they are now trillions in debt, just a few summer blockbuster movies would be enough to pay off the debts and have some left over for another freedom seeking adventure to save mankind.

Such beliefs are not unfounded, for they do have the might and capability, and had provened to be the greatest consumers and producers in the world, compared to the penny pinching europeans.

European Union.

California, New York and Detroit cannot ever hope to secede from USA, nor are they stupid to do so. Turkey, Greece and Italy can do so, anytime they wish. What will happen to their EU dollar then? And then backed by what wealth?

Compared in terms of stability, the US dollar is still the most stable. Place you faith in EU and save in EU dollars, then one must pray hard that the europeans will always stay united as one common entity.

Iran

What is an exchange or bourse, if not for speculations?

Why would Iran need an exchange when they are already producers of oil, and profiting from oil?

Why force the world to trade in the semi-stable EU dollar for oil?

Most important of all, WILL SUCH TRADING IN THE IRANIAN BOURSE BRING DOWN THE PRICE OF OIL?

Everyone of us better pray hard it wont be succcessful, or we from non oil producers country will be made bankrupt soon.

Most of us humanity really don't care much for world affairs. As long as we can survive, with food on our table for an honest day's work, savings for our future and kids' future, we really don't bother.

But the price of oil had shot up too much for humanity to bear, for it raises the price of everything else. We are made to suffer unnecessarily for another nation's leadership's nuclear weapons ambition. Then they must pay. Along with the iranian agents and paid agents for their hogwash propaganda!

War on Iran please! replied by Poh Ah Pak @ Mon, 04 Aug 2008 20:12:22 +0800

Poh Ah Pak — Mon, 04 Aug 2008 20:12:22 +0800

I think Iran wants nuclear arms is to deter Israeli or USA nuclear strike and to strengthen its military power in the region.

War on Iran please! replied by googoomuck @ Mon, 04 Aug 2008 20:04:12 +0800

googoomuck — Mon, 04 Aug 2008 20:04:12 +0800

Originally posted by Poh Ah Pak:

War Nerd: Amazing Combat Video from Iran-Iraq War!

Is that the reason that Iran needs nuclear arms? Iranian soldiers couldn't shoot straight!

War on Iran please! replied by pearlie27 @ Mon, 04 Aug 2008 18:49:03 +0800

pearlie27 — Mon, 04 Aug 2008 18:49:03 +0800

Originally posted by xtreyier:

You and me. And any others who, like me, sick of paying more of our hardearned money for bus transportation and electricity to illuminate the night for rest after a hardday's work. As well as paying more for the kopi-o, bread. And more,etc,etc...

THE IRANIAN LEADERSHIP MUST PAY FOR OUR SUFFERING!!!!

Oh yah, i'm also very sick of paying more for basis necessities so i should go to war with our govt!

War on Iran please! replied by Poh Ah Pak @ Mon, 04 Aug 2008 17:17:19 +0800

Poh Ah Pak — Mon, 04 Aug 2008 17:17:19 +0800

Henry Paulson has lost Control over US Finance, Economy

By F. William Engdahl, 3 August 2008

When Henry Paulson agreed to leave his job as chairman of the powerful Wall Street investment bank, Goldman Sachs to go to Washington as Treasury Secretary in 2006 he demanded extraordinary powers as de facto economic czar. He got it. Paulson is also head of the President’s Working Group on Financial Markets -- the secretary of the treasury and the chairmen of the Federal Reserve Board, the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The Working Group is the financial world's equivalent of the Pentagon war room. Paulson, not Fed chairman Bernanke, is the person running the Administration’s crisis management.

And his recent actions indicate he has lost control as the snowballing problems from the semi -government mortgage companies Freddie Mac and Fannie Mae to the collapse of the multi-trillion dollar market in Asset Backed Securities (ABS) to the real economy are compounding into the worst crisis since the 1930’s Great Depression...

http://www.engdahl.oilgeopolitics.net/Financial_Tsunami/Paulson/paulson.html

War on Iran please! replied by Gosu. @ Mon, 04 Aug 2008 17:08:57 +0800

Gosu. — Mon, 04 Aug 2008 17:08:57 +0800

A Nightmare for the US: Why the Dollar Bubble is about to Burst

The Voice http://www.scottishsocialistvoice.net/back%20issues%2006/issue%20264.htm (issue 264 - 11th May 2006 page 8) ran an article beginning, 'Iran has really gone and done it now. No, they haven't sent their first nuclear sub in to the Persian Gulf. They are about to launch something much more deadly -- next week the Iran Bourse will open to trade oil, not in dollars but in Euros' This apparently insignificant event has consequences far greater for the US people, indeed all for us all, than is imaginable.

Currently almost all oil buying and selling is in US-dollars through exchanges in London and New York. It is not accidental they are both US-owned.

The Wall Street crash in 1929 sparked off global depression and World War II. During that war the US supplied provisions and munitions to all its allies, refusing currency and demanding gold payments in exchange.

By 1945, 80% of the world's gold was sitting in US vaults. The dollar became the one undisputed global reserve currency -- it was treated world-wide as `safer than gold'. The Bretton Woods agreement was established.

The US took full advantage over the next decades and printed dollars like there was no tomorrow. The US exported many mountains of dollars, paying for ever-increasing amounts of commodities, tax cuts for the rich, many wars abroad, mercenaries, spies and politicians the world over. You see, this did not affect inflation at home! The US got it all for free! Well, maybe for a forest or two.

Over subsequent decades the world's vaults bulged at the seams and more and more vaults were built, just for US dollars. Each year, the US spends many more dollars abroad that at home. Analysts pretty much agree that outside the US, of the savings, or reserves, of all other countries, in gold and all currencies -- that a massive 66% of this total wealth is in US dollars!

In 1971 several countries simultaneously tried to sell a small portion of their dollars to the US for gold. Krassimir Petrov, (Ph. D. In Economics at Ohio University) recently wrote http://news.goldseek.com/GoldSeek/1137510262.php , 'The US Government defaulted on its payment on August 15, 1971. While popular spin told the story of `severing the link between the dollar and gold', in reality the denial to pay back in gold was an act of bankruptcy by the US Government.' The 1945 Bretton Woods agreement was unilaterally smashed.

The dollar and US economy were on a precipice resembling Germany in 1929. The US now had to find a way for the rest of the world to believe and have faith in the paper dollar. The solution was in oil, in the petrodollar. The US viciously bullied first Saudi Arabia and then OPEC to sell oil for dollars only -- it worked, the dollar was saved. Now countries had to keep dollars to buy much needed oil. And the US could buy oil all over the world, free of charge. What a Houdini for the US! Oil replaced gold as the new foundation to stop the paper dollar sinking.

Since 1971, the US printed even more mountains of dollars to spend abroad. The trade deficit grew and grew. The US sucked-in much of the world's products for next to nothing. More vaults were built.

Expert, Coilin Nunan, wrote in 2003 (http://www.feasta.org/documents/review2/nunan.htm) , 'The dollar is the de facto world reserve currency: the US currency accounts for approximately two thirds of all official exchange reserves. More than four-fifths of all foreign exchange transactions and half of all world exports are denominated in dollars. In addition, all IMF loans are denominated in dollars.'

Dr Bulent Gukay of Keele University recently wrote, 'This system of the US dollar acting as global reserve currency in oil trade keeps the demand for the dollar `artificially' high. This enables the US to carry out printing dollars at the price of next to nothing to fund increased military spending and consumer spending on imports. There is no theoretical limit to the amount of dollars that can be printed. As long as the US has no serious challengers, and the other states have confidence in the US dollar, the system functions.'

Until recently, the US-dollar has been safe. However, since 1990 Western Europe has been busy growing, swallowing up central and Eastern Europe. French and German bosses were jealous of the US ability to buy goods and people the world over for nothing. They wanted a slice of the free cake too. Further, they now had the power and established the Euro in late 1999 against massive US-inspired opposition across Europe, especially from Britain - paid for in dollars of course. But the Euro succeeded.

Only months after the euro-launch, Saddam's Iraq announced it was switching from selling oil in dollars only, to euros only -- breaking the OPEC agreement. Iran, Russia, Venezuela, Libya, all began talking openly of switching too -- were the floodgates about to be opened?

Then aeroplanes flew into the twin-towers in September 2001. Was this another Houdini chance to save the US (petro) dollar and the biggest financial/economic crash in history? War preparations began in the US. But first war-fever had to be created -- and truth was the first casualty. Other oil producing countries watched-on. In 2000 Iraq began selling oil in euros. In 2002, Iraq changed all their petro-dollars in their vaults into euros. A few months later, the US began their invasion of Iraq.

The whole world was watching: very few aware that the US was engaging in the first oil currency, or petrodollar war. After the invasion of Iraq in March 2003, remember, the US secured oil areas first. Their first sales in August were, of course, in dollars, again. The only government building in Baghdad not bombed was the Oil Ministry! It does not matter how many people are murdered -- for the US, the petrodollar must be saved as the only way to buy and sell oil -- otherwise the US economy will crash, and much more besides.

In early 2003, Hugo Chavez, President of Venezuela talked openly of selling half of its oil in euros (the other half is bought by the US). On 12 April 2003, the US-supported business leaders and some generals in Venezuela kidnapped Chavez and attempted a coup. The masses rose against this and the Army followed suit. The coup failed. This was bad for the US.

In November 2000 the euro/dollar was at $0.82 dollars, its lowest ever, and still diving, but when Iraq started selling oil in euros, the euro dive was halted. In April 2002 senior OPEC reps talked about trading in euros and the euro shot up. In June 2003 the US occupiers of Iraq switched trading back to dollars and the euro fell against the dollar again. In August 2003 Iran starts to sell oil in euros to some European countries and the euro rises sharply. In the winter of 2003-4 Russian and OPEC politicians talked seriously of switching oil/gas sales to the euro and the euro rose. In February 2004 OPEC met and made no decision to turn to the euro -- and yes, the euro fell against the dollar. In June 2004 Iran announced it would build an oil bourse to rival London and New York, and again, the euro rose. The euro stands at $1.27 and has been climbing of late.

But matters this month became far, far worse for the US dollar. On 5th May Iran registered its own Oil Bourse, the IOB. Not only are they now selling oil in euros from abroad -- they have established an actual Oil Bourse, a global trading centre for all countries to buy and sell their oil!

In Chavez's recent visit to London; he talked openly about supporting the Iranian Oil Bourse, and selling oil in euros. When asked in London about the new arms embargo imposed by the US against Venezuela, Chavez prophetically dismissed the US as 'a paper tiger'.

Currently, almost all the world's oil is sold on either the NYMEX, New York Mercantile Exchange, or the IPE, London's International Petroleum Exchange. Both are owned by US citizens and both sell and buy only in US dollars. The success of the Iran Oil Bourse makes sense to Europe, which buys 70% of Iran's oil. It makes sense for Russia, which sells 66% of its oil to Europe . But worse for the US, China and India have already stated they are very interested in the new Iranian Oil Bourse.

If there is a tactical-nuclear strike on - deja-vu - `weapons of mass destruction' in Iran, who would bet against a certain Oil Exchange and more, being bombed too?

And worse for Bush. It makes sense for Europe, China, India and Japan-- as well as all the other countries mentioned above -- to buy and sell oil in Euros. They will certainly have to stock-up on euros now, and they will sell dollars to do so. The euro is far more stable than the debt-ridden dollar. The IMF has recently highlighted US economic difficulties and the trade deficit strangling the US-- there is no way out.

The problem for so many countries now is how to get rid of their vaults full of dollars, before it crashes? And the US has bullied so many countries for so many decades around the world, that many will see a chance to kick the bully back. The US cannot accept even 5% of the world's dollars -- it would crash the US economy dragging much of the world with it, especially Britain.

To survive, as the Scottish Socialist Voice article stated, 'the US, needs to generate a trade surplus to get out of this one. Problem is it can't.' This is spot on. To do that they must force US workers into near slavery, to get paid less than Chinese or Indian workers. We all know that this will not happen.

What will happen in the US? Chaos for sure. Maybe a workers revolution, but looking at the situation as it is now, it is more likely to be a re-run of Germany post-1929, and some form of extreme-right mass movement will emerge.

Does Europe and China/Asia have the economic independence and strength to stop the whole world's economies collapsing with the US? Their vaults are full to the brim with dollars.

The US has to find a way to pay for its dollar-imperialist exploitation of the world since 1945. Somehow, eventually, it has to account for every dollar in every vault in the world.

Bombing Iran could backfire tremendously. It would bring Iran openly into the war in Iraq, behind the Shiite majority. The US cannot cope even now with the much smaller Iraqi insurgency. Perhaps the US will feed into the Sunni v Shiite conflict and turn it into a wider Middle-East civil-war. However, this is so dangerous for global oil supplies. Further, they know that this would be temporary, as some country somewhere else, will establish a euro-oil-exchange, perhaps in Brussels.

There is one `solution' -- scrap the dollar and print a whole new currency for the US. This will destroy 66% of the rest of the world's savings/reserves in one swoop. Imagine the implications? Such are the desperate things now swimming around heads in the White House, Wall Street and Pentagon.

Another is to do as Germany did, just before invading Poland in 1938. The Nazis filmed a mock Polish Army attack on Germany, to win hearts and minds at home. But again, this is a finger in the dam. So, how is the US going to escape this time? The only global arena of total superiority left is military. Who knows what horrors lie ahead. A new world war is one tool by which the US could discipline its `allies' into keeping the dollar in their vaults.

The task of socialists today is to explain to as may as possible, especially our class, that the coming crisis belongs purely to capitalism and (dollar) imperialism. Not people of other cultures, not Islam, not the axis of evil or their so-called WMDs. Their system alone is to blame.

The new Iranian Oil Bourse, the IOB, is situated in a new building on the free-trade-zone island of Kish, in the Persian Gulf. Its computers and software are all set to go. The IOB was supposed to be up and running last March, but many pressures forced a postponement. Where the pressure came from is obvious. It was internationally registered on 5th May and supposed to open mid-May, but its opening was put off, some saying the oil-mafia was involved, along with much international pressure. Just google `pertroeuro' http://www.google.com/search?hl=en&q=petroeuro&btnG=Search , and the story lies before you.

From now on, anyone in the know will wake up every morning and, even before coffee, will check out the latest exchange rate between the euro and dollar.

The story explains itself.

War on Iran please! replied by Poh Ah Pak @ Mon, 04 Aug 2008 16:51:24 +0800

Poh Ah Pak — Mon, 04 Aug 2008 16:51:24 +0800

This is a great guide to guerrilla warfare, written by Mao Zedong, very insightful:

ON PROTRACTED WAR

http://www.marxists.org/reference

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