Like aging, the overthrow of the U.S. dollar (as the key world currency) is a gradual process. In the last month, I’ve blogged on Russia as a U.S. financial opponent, growing ties among the BRICS nations, and growing Germany-China ties, all tending toward the decline (or eventual elimination) of the dollar from those countries’ relationships with each other.
Today it’s growing Russia-Iran ties (that remove the U.S. dollar from their partnership):
(Reuters) – Iran and Russia have made progress towards an oil-for-goods deal sources said would be worth up to $20 billion, which would enable Tehran to boost vital energy exports in defiance of Western sanctions, people familiar with the negotiations told Reuters.
In January Reuters reported Moscow and Tehran were discussing a barter deal that would see Moscow buy up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods…
[A] source said the two sides were looking at a barter arrangement that would see Iranian oil being exchanged for industrial goods including metals and food…
The Iranian official said missiles would also be part of the deal, together with Russia providing assistance with building two nuclear plants in Iran…
Missiles? Yikes! But this is what you can expect, with Jimmy Carter President Obama at the helm. He should have assisted Iran’s (aborted) Green Revolution back in 2009-10, when he had the chance.
Hat tip, ZH.
American dollar declining under Obama? That’s unpossible.
Yeah. And it’s the U.S. geopolitical position in general. Trade, finance, military alliances – they go together. I just happen to focus on “what it’s going to mean for the dollar” or the U.S. economy.
The late ’70s called and they want their malaise back.
How nice.
Not only does Russia control the pipelines supplying the vast majority of energy to Europe, they now have direct influence over the country voted most likely to close or make impassable the Strait of Hormuz, which can nicely choke off roughly a third of the world’s oil.
Meanwhile, here in the United States, the ignorant child Obama and the Obama Party of fanatics do their best to sabotage any attempt for this country to exploit its own vast resources.
NDT,
As Betsy Ross famously didn’t tell George Washington: “Geo-politics is a Michelle Obama.”
Our current crop of Department of State strategists got their basic training at the Quaker School of Post-Preemptive Strike of Mediation and Surrender.
If the US were smart about Iran, we would be working with Hassan Rouhani to reduce sanctions and improve his economy. The legacy of Iran/Contra when the States abandoned Realpolitik for ideological fervor lives on.