The Proposed Iranian Oil Bourse

Financial Sense Online ^ | January 20, 2006 | Krassimir Petrov, Ph.D.

[skinkinthegrass]

Hmmm...Thanks, something to think about. 8^|

[lonestar67]

incorrect

[Enterprise]

Ominous

[gotribe]

Another go-to-gold article.
Strange that he job hunts in his bio. Opportunism I guess.

From 321Gold:
About the Author
Krassimir Petrov has received his Ph. D. in economics from the Ohio State University and currently teaches Macroeconomics, International Finance, and Econometrics at the American University in Bulgaria. He is looking for a career in Dubai or the U.A.E.

[Max in Utah]

Another go-to-gold article.
Strange that he job hunts in his bio. Opportunism I guess.

Maybe he wants to rake in the dinars. Gold dinars, that is.

[chuckr]

I agree......most middle eastern logic revolves around 2,000 year old theology that is lacking in anything positive....they just want to kill / destroy any culture other than Islam......they will receive total destruction for their deeds and the rest of the world will have to learn how to live without Islamics oil.......

[willyd]

When you take into account that North Korea has been printing $100,000,000 per year in US currency and distributing it into the worlds money supply, we could be in for some real inflation. I have already noticed the cost of consumable goods increasing way more since 2000 than they did in the 90's. I don't know about this Empire that taxes other nations through devalued currency nonsense though. I think China still holds a considerable interest in the value of the dollar. Hyperinflation here means we don't buy products there.

[operation clinton cleanup]

Thus, these two powerful forces will drive the dollar in opposite directions. Its inevitable demise may be swift and sudden, or it may be protracted and painful.

So should I be excited or terrified.... or just call a gold broker to convert my worthless dollars?

[gotribe]

Mr. Petrov will be happy to take your money for his estate outside Dubai.

[Greenpees]

Three points:

1. If Oil is replaced by another technology developed, or heavily invested by the United States, this authors fantasy is over.

2. There is no stable currency without the US Dollar. Is he suggesting that the Euro is backed by Gold? Of all the exports in the World oil may be critical, but it's a very small percentage of World trade. Even if oil prices switched to Euros, which it will not do, Economies must still buy the oil. Chinas exports are bought by those with money, not oil. Do you think China would trade off having the US as a customer to having only the Middle East as a Trading Partner?

3. We have FOOD, and the ability to produce alot more than we do already. I say Food is the new oil, under the authors scenario, because nations states will have a hell of a time producing enough on their own, and maybe we just "don't accept Euros for Grain"

Another doubter of the future of America. He may be right that things would get tough, probably real tough. But, if he thinks the world is ready to jump into a global depression just for the sake of one dictator in Iran, he's crazy.

[nj_pilot]

This piece is not half-baked. It's not even warm. the author is either ignorant or attempting to mislead.

If this aweful (!) thing should come to pass, producers will have excess euro's to sell, not excess dollars. No net effect on the dollar vs the euro, because the lower consumer demand for dollars is exactly offset by the lower producer supply of dollars.

moreover, if anyone wants to buy oil in euros or zlottys or cowpies, they can. find a seller who wants cowpies or a bank that will cowpies for dollars, and you are in business.

[KingKenrod]

Financial Sense Online is run by a pro-Metals brokerage,
which means you can ignore this as scare-mongering. Kind of like the peak oil folks.

[Pete from Shawnee Mission]

"But, if he thinks the world is ready to jump into a global depression just for the sake of one dictator in Iran, he's crazy."

They might not do it for Iran. They might do it because they are European, they have been taught to hate our wealth and power. They might do it just to watch us bleed out.

He is right about inflation. It is as much a tax on the rest of the world as on Americans.

[Tyche]

I'm still perplexed why we didn't put a oil embargo on Iran after naming them to the Axis of Evil. By not doing so we kinda supported their military build up and such.

[uscabjd]

OK, I'm dumb. So what if the dollar is 1-1.2E or 1-1.5E? It just makes our exports cheaper, and imports more expensive. People will travel here, not us there. Why again is this bad?

[Lejes Rimul]

Well, keep in mind that a similar scheme proposed in Dubai went nowhere. That said, the Iranians have a bigger incentive - namely, destroying the petrodollar - to push their bourse than the complacent Arab oil sheikhs ever did. However, given the internal ferment in Iran at the moment, I don't expect the March-slated bourse to open much before 2007.

[The Drowning Witch]

MAJOR PING

[sharkhawk]

When you take into account that North Korea has been printing $100,000,000 per year in US currency

$100 million isn't a threat to country with a GDP of $11,750,000,000,000. About .0008% wouldn't affect us at all.

[The Drowning Witch]

So does this mean I should sell my house, and all my assets and start hoarding gold coins in my crawlspace????

I've got my broker on hold RIGHT NOW....and he's about to call the white-jacketed men on me......