Sunday, February 12, 2006

Iranian Oil Bourse Clarifications

Some messages I've received from some people make me think that there is still some confusion over the Iranian Oil Bourse and its status as a threat to the Federal Reserve note (US Dollars).

Currently, oil is sold only on two commodities markets worldwise. They NYMEX in New York, and the IPE in London. Both of these exchanges deal in dollars only. Nations wishing to purchase crude must make these purchases in US dollars. This is what is known as the Petrodollar system. Nations buy large quantites of US dollars and hold them in their central banks as "reserve currency" to use for oil purchases. These dollars are funnelled through the IPE and NYMEX exchanges into mostly Saudi coffers, and then re-sold on the world market to the very same countries wishing to hold dollars in reserve for oil purchases.

The Iranian Oil Bourse, set to open on March 20, 2006, will be an international exchange market. ANY NATION will be able to BUY OR SELL oil for EUROS INSTEAD OF DOLLARS. This is not about Iran selling their 2 million or so barrels per day for Euros... This is about Iran opening an international petroleum exchange that threatens the very fabric of how American currency retains its value. The Gold Standard was abandoned in 1933. But any time anyone wants to buy oil, they must first have dollars. The dollar is backed by international oil purchases. Without these dollar purchases by other nations, the dollar's value would drop like a stone--as we are running a $450 billion dollar annual budget deficit added to our already astronomical $8.2 trillion dollar debt. In short, our currency only retains its high value because other nations "buy" large portions of that debt and use the dollars to buy oil.

Most people are not aware of how the federal reserve currency system operates. Some people still believe their dollars are backed by gold. And most people probably don't give it a second thought. This is by design:

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States"
-- Sen. Barry Goldwater (Rep. AR)

"The few who understand the [Federal Reserve] system, will either be so interested from its profits or so dependant on its favors, that there will be no opposition from that class." -- Rothschild Brothers of London, 1863

Money makes the world go round. And oil makes the money go round. And the less American citizens know about it, the better, as far as the Federal Reserve bank is concerned. If the president got on TV and said, "My fellow Americans... I regret to inform you that our economy is run by private banking institutions. We must now make war with Iran to prevent our money--which is printed and regulated by these private banking instutions--from loosing all of its value. I hope you understand that we are powerless against the will of the Federal Reserve system. Please continue to live in a perpetual state of debt. The most patriotic thing every American can do would be to take out a second mortgage on their home..." People would be outraged...

Well, people should be outraged. If Iran opens their Oil Bourse as planned, we are going to war with Iran to protect our currency. In that respect, this war with Iran is actually in the national security interests of the US. As for any other official "reason" you may hear for war with Iran--take it with a grain of salt... You--as an American citizen--have a job: spend more money than you earn. Hold large chunks of debt that accrue interest. Make money for the world elites who own the federal banks. Being informed is not in your job description. Well I think it's time for people to say--take this job and shove it.


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