US And EU Embargo on Iran Set To Backfire
The US and European Union embargo threats to Iran are about to backfire. Iran in a move that will certainly damage the economies of Spain, Greece, Italy, as well as the U.S dollar, is about to beat them all to the punch.
The logic that drives our nation into attacking the economy of Iran is born of amazing propaganda. The single excuse is a UN report stating that Iran is capable of making a nuclear weapon but there is no evidence of them doing this. The US government chooses to only look at the first part of that sentence. So even though Iran is allowing UN inspectors watch their every move someone in DC has decided that it is better to drive Iran into selling oil to China and India for gold.
The real joke is that the US and the nations in the European Union depend on Iran for oil. The most affected for oil will be the countries with the biggest financial problems, Greece, Italy, France and Spain. One must ask why they want to start this embargo in August? The answer was that these countries wanted time to find other places to get their oil while punishing Iran for not allowing US/European exploitation of their wealth.
Iran, in a brilliant move, will have none of this. Once the EU signed the accord with the USA to stop buying their oil from Iran in August Iran has decided to pre-empt the attack by stopping Iranian oil shipments to the EU this week. Iran has just upped their production and is selling now to China and India. Even more astonishing is that Iran is no longer using the dollar for trade but is opting for all payments in gold. This bypasses the US effort to confiscate Iran’s wealth as it passes through banks. But forcing the first large oil producer to price themselves in gold is going to have some severe consequences on nations that depend on paper money they can print at will.
The USA wants Iranians to change their government. That is the goal. It isn’t yours or mine, but somehow our government sees that as a viable goal. Their myopic vision was to cut off the fiat currency banking system from Iran and isolate them. This would cause that whole nation to suffer and is accurately described as an act of war. But Iran with a stroke of Zen has taken the affirmative plan and decided to go with the flow. By entering the gold market they not only get real value for their product but no nation can block the funds.
The problem is ours now. As Iran now sells its oil for gold other nations will start to do the same. Bits of paper being easy to manufacture makes gold more valuable so why trade valuable oil for bits of paper? This is going to badly affect our nation as dollar value collapses.
When the oil crisis hits the whole of Europe next week prices for everything will rise about 10% a month creating an inflationary spiral as governments run to every oil spigot in the world as the price will skyrocket 60% in the first few months. As more nations are forced to pay with gold for their oil their reserves will be depleted by the end of the year causing complete collapse.
The only thing we normal Americans can do is hope for the best. Coming elections will provide no relief as Republicans work tirelessly to keep Obama in office and keep the paper currency flowing at 0% interest.
What can you do as a citizen hoping for change? Vote for Ron Paul.