Iran China gas deal
- Thread starter danmand
- Start date
LOL.
Well China has a problem then since Iran recently said it will only accept Euros for payment not USD.
The US is not happy with this.
It's another reason for attacking Iran.
Well China has a problem then since Iran recently said it will only accept Euros for payment not USD.
The US is not happy with this.
It's another reason for attacking Iran.
It has to do with the Iranian Oil Bourse and the threat Team 'w' feels Iran poses to the USD as the world's Reserve Currency.bbking said:Gee Wood, you want to explain to me the economic problem the US would have with Iran dealing only in Euros or for that matter what problem would this be for China?
BBK
This whole 'Iranian nuclear threat' issue is a charade being used to hide the true fact that they fear an Iranian Oil Bourse, if a success could hurt the USD badly. Especially if other countries decide to switch to it. Russia, China, India and a few South American countries have expressed interest in it and Team 'w' has decided this can not be allowed to happen.
This threat to the USD is strangely being ignored and under-reported by the major News Corporate/Media but can easily be found on the internet.
Just Google, 'Iranian Oil Bourse' and learn.
The USD is built on the idea that people want and demand US currency. By using USD as petro dollars, it keeps the demand for US currency high and distorts the real price of the dollar on the international markets.
Some belive that Iraq was invaded because Saddam had said he would be moving to the petroEuro and away from US currency.
Some belive that Iraq was invaded because Saddam had said he would be moving to the petroEuro and away from US currency.
One of the necessary conditions for the US to be able to print unlimited amounts of dollars, is that the $US is the de facto reserve currency of the world. Any change to that, i.e. Euro's, Gold or Gold Dinars, will impact the ability of the US to print $US.
We should all hope you are right in your prediction (this time LOL). However, I think there simply are too many $US for the demand in the future, so I am betting on gold, as an insurance policy for a falling $US.bbking said:The Euro is far from becoming the reserve currency - however most central banks hold a significant postion in Euros anyways, so again what is the problem.
Frankly the US is heading for a soft landing in 2007 largely because a cheaper US dollar makes exports easier to sell around the world. With falling US consumer spending, Iran actiually might help the US economy in some minor way by putting downward pressure on the US dollar.
I think your making a mountain out of a mole hill - sorry.
Team 'w' Warns China on Gas Deal
The saga continues to unfold........
U.S. Embassy Is Warning Beijing on Iran Gas Deal
By ELI LAKE
Staff Reporter of the Sun
December 28, 2006
WASHINGTON — The Bush administration and Congress are warning that a proposed $16 billion deal between a Chinese company and Iran could trigger economic penalties under an American law aimed at starving Iran of funding for terrorism and nuclear weapons.
Officials at the American embassy in China delivered a demarche Saturday in Beijing. They demanded an explanation of the deal from Chinese government officials and warned them that it could trigger a 1996 law, the Iran Libya Sanctions Act. The law prohibits foreign firms that invest more than $10 million in Iran's energy sector from raising capital in American financial markets.
The Democrat from California who will take over next week as chairman of the House International Relations Committee, Tom Lantos, said his panel will "closely examine" the deal next week to see if the sanctions would apply. The ranking Republican on that committee, Rep. Ileana Ros-Lehtinen, a Republican from Florida, said she will also be looking closely at the deal.
The Chinese company involved in the deal, the Chinese National Offshore Oil Corporation, or CNOOC, is state controlled but has some independent directors, including a former vice chairman of Goldman Sachs Asia. It is listed on the New York Stock Exchange. The company attracted American press attention in 2005, when it launched a $18.5 billion bid for the American oil company Unocal that it eventually withdrew amid congressional opposition......
Link to balance of the article
The saga continues to unfold........
U.S. Embassy Is Warning Beijing on Iran Gas Deal
By ELI LAKE
Staff Reporter of the Sun
December 28, 2006
WASHINGTON — The Bush administration and Congress are warning that a proposed $16 billion deal between a Chinese company and Iran could trigger economic penalties under an American law aimed at starving Iran of funding for terrorism and nuclear weapons.
Officials at the American embassy in China delivered a demarche Saturday in Beijing. They demanded an explanation of the deal from Chinese government officials and warned them that it could trigger a 1996 law, the Iran Libya Sanctions Act. The law prohibits foreign firms that invest more than $10 million in Iran's energy sector from raising capital in American financial markets.
The Democrat from California who will take over next week as chairman of the House International Relations Committee, Tom Lantos, said his panel will "closely examine" the deal next week to see if the sanctions would apply. The ranking Republican on that committee, Rep. Ileana Ros-Lehtinen, a Republican from Florida, said she will also be looking closely at the deal.
The Chinese company involved in the deal, the Chinese National Offshore Oil Corporation, or CNOOC, is state controlled but has some independent directors, including a former vice chairman of Goldman Sachs Asia. It is listed on the New York Stock Exchange. The company attracted American press attention in 2005, when it launched a $18.5 billion bid for the American oil company Unocal that it eventually withdrew amid congressional opposition......
Link to balance of the article
This reduces China's USD holdings which is good. Not surprising that the Woody wouldnt like it. From this point on, dont raise any looming currency crisis then.
infinitesimallyallaboutben said:This reduces China's USD holdings which is good. Not surprising that the Woody wouldnt like it. From this point on, dont raise any looming currency crisis then.
Sorry, I used shorthand. I do gold companies.bbking said:...try gold companies not bullion - better bounce if your right.
