U.S. Beats War Drum as Iran Dumps the Dollar
The seemingly ever escalating rhetoric against Iran by U.S. officials took another step forward today. A senior military official leaked to the press plans to publicly reveal the evidence of weapons caches found in Iraq which can be directly traced back to Iran.
The types of weapons found such as roadside bombs are believed to have been meant for use against the occupying American forces.
This plan to publicly present evidence of Iranian support for Shiite militias inside of Iraq comes at virtually the same time that Iranian officials have confirmed that they have completely dumped the dollar in their oil trades.
It is being reported by an anonymous official that plans to release evidence were going to go forward sooner than is now expected because Iraqi officials want to first meet with Iranian officials to discussion a possible solution to what U.S. officials see as a growing problem.
Adding even more fuel to the fire of speculation is the recent arrival of a second United States aircraft carrier just of the southern coast of Iran. Secretary of Defense Robert Gates was quoted yesterday while in Mexico as saying that the 2nd aircraft carrier is a “reminder” and not a threat or elevation of pressure on Iran. Though it is now being reported by an anonymous senior official that the USS Lincoln was a replacement for the USS Truman which is now reportedly returning to its home base, this has not yet been confirmed.
It is important not to underestimate the possible severity of Washington’s response to the announcement of Iran dumping the dollar in oil exchanges and opting instead for the euro and the yen.
It is some economic analyst’s belief that Saddam Hussein’s decision to switch from accepting the dollar to accepting the euro in 2000 was one of the significant developments that transformed opinions in Washington. Vice President Dick Cheney’s opinion was the highest profile example of a reevaluation of Iraq (after Saddam’s dumping of the dollar) which led to the belief that regime change in Iraq was necessary to protect American interests.
Some American economists fear that by Iran dumping the dollar it could lessen the need for other countries around the world to hold onto their large reserves of United States Federal Reserve notes. This would likely result in the further plunging of the dollar as well as the continuing climb of fuel prices. In recent weeks the dollar has shown some resiliency, but most of the world’s leading economists, such as Ben Fulford, a former Asian Bureau Chief for Forbes, who calls the recent dollar movement a “dead cat’s bounce” believe that while the Federal Reserves move to flood the economy with cash may have a short-term effect of essentially buying some time, the writing is on the wall for the U.S. economy.
Consider contributing to help us survive! A chipin! has been posted on the right sidebar to help us with our quarterly fundraiser. Contributions allow us to continue having our own server and will allow us to hire an editor! Please consider helping us out.