Result of petrodollar warfare: Ditching the Dollar for Gold!
Most oil sales throughout the world are denominated in United States dollars (USD).
According to proponents of the petrodollar warfare hypothesis, because most countries rely on oil imports, they are forced to maintain large stockpiles of dollars in order to continue imports. This creates aconsistent demand for USDs and upwards pressure on the USD’s value,regardless of economic conditions in the United States. This in turn allegedly allows the US government to gain revenues through seignorage and by issuing bonds at lower interest rates than they otherwise would be able to. As a result the U.S. government can run higher budget deficits at a more sustainable level than can most other countries. A stronger USD also means that goods imported into the United States are relatively cheap. Another component of the hypothesis is that the price of oil is more stable in the U.S.than anywhere else, since importers do not need to worry about exchange rate fluctuations. Since the U.S. imports a great deal of oil, its markets are heavily reliant on oil and its derivative products (jet fuel, diesel fuel, gasoline, etc.) for their energy needs. The price of oil can be an important political factor; U.S. administrations are quite sensitive to the price of oil. Political enemies of the United States therefore have some interest in seeing oil prices denominated in pretty much anything but the US dollar.
http://www.youtube.com/watch?v=6u7KnXyrKmQ This transaction wasn’t an easy one, as oil is priced in U.S. dollars within this petrodollar warfare.
Therefore, two big banks had to mediate the deal between the two parties:
Petrodollar warfare: India’s state-owned UCO Bank and Turkey’s state-owned Halkbank helped ensure a smooth and legal transaction between Iran and India..Both banks don’t have any business with the US and there- fore are less vulnerable to sanctions. According to the report, an Indian delegation has spent time in Tehran andfinalized the details of the transactions. The annual capacity of trade between these two countries is 12 billion dollars. With gold trading at around $1668,that is around 7.2 million ounces of gold.
This happened shortly after Iran and Russia announced they would trade using
their own domestic currencies as opposed to the U.S. dollar. EU officials recently
announced an “oil embargo on Iran” beginning on July 1st. Consequently, tension is
steadily rising in relations between the West and Iran… Oil is steadily rising as well.
The embargo agreement means any bank dealing with Iran would be unauthorized
to participate in transactions associated with American or European financial institutions.
India’s choice to pay for Iranian oil with gold will push gold even higher
— while keeping the value of the dollar on a steady decline.
Do you have your gold, whether or not you want to use it one day for buying oil or gas?
For further information, how to prepare best for the scenarios on the horizon, go to: http://clktr4ck.com/gold999