Iran Opens Oil Bourse - Harbinger of Trouble for New York and London?

OilPrice.com ^ | 07/18/2011 | Dr John C.K. Daly

[bananaman22]

The last three years of global recession have dealt a major blow to American capitalist ideas trumpeted throughout the world on the value of “free markets.” Wall St has been revealed as a form of casino economy, with the bankster insiders gambling with other people’s, and eventually, the government’s money in the form of bailouts. As the Republicans in Congress, scenting victory in the 2012 presidential elections, hold a gun to the Obama administration’s head and rating agencies consider downgrading U.S. government bonds in light of Washington’s possible defaulting, many ideas around the world that previously seemed implausible because of the dominance of the U.S. economy are garnering renewed interest.

Not surprisingly, many of these concepts originate in countries not enamored with Washington’s influence, perhaps none so more than “Axis of Evil” charter member Iran, which has seen its economy hammered by more than three decades of U.S.-led sanctions. Now Iran is working a program, that, if it succeeds, could help undermine the dollar’s preeminence as the world’s reserve currency more effectively than a Republican filibuster.

Iran’s sly weapon against the Great Satan’s currency? An oil bourse on Kish Island in the Persian Gulf, which has now begun selling high-grade Iranian crude oil.

Mohsen Qamsari, deputy director for international affairs of the Iranian National Oil Company was modest about the exchange’s initial capabilities, saying, "The commodity stock exchange has been pursuing a mechanism for offering crude oil on the stock exchange for a long time, and it has taken the preliminary steps, to the extent possible. Considering the existing banking problems, foreign customers are not expected to be taking part in the first phase of offering crude oil on the stock exchange, and this will be done on a trial basis. Today Bahregan heavy, high quality, low sulfur crude oil with less sourness will be offered on the stock exchange for the first time. In the first phase, a 600,000 barrel shipment will be offered."

Given that the world currently consumes roughly 83 million barrels of crude oil each day, the initial oil offerings at the Iranian stock exchange are hardly going to make or break the market, but they do represent an attempt by a significant oil producer to divert revenue streams from New York Mercantile Exchange, the world's largest physical commodity futures exchange, which handles West Texas Intermediate benchmark futures, and London's Intercontinental Exchange, which deals in North Sea Brent. All trades are in dollars, effectively giving the U.S. currency a monopoly.

The Kish Exchange dates back to February 2008, when instead of Tehran, Kish was chosen because it had designated as a free trade zone. The Exchange was set up to trade contracts in euros, Iranian rials and a basket of other currencies other than dollars. The previous year, Iran had requested that its petroleum customers pay in non-dollar currencies. But the Full article at: Iran Opens Oil Bourse

[KC_Lion]

"The last three years of global recession have dealt a major blow to American capitalist ideas trumpeted throughout the world on the value of “free markets.” Wall St has been revealed as a form of casino economy, with the bankster insiders gambling with other people’s, and eventually, the government’s money in the form of bailouts. As the Republicans in Congress, scenting victory in the 2012 presidential elections, hold a gun to the Obama administration’s head and rating agencies consider downgrading U.S. government bonds in light of Washington’s possible defaulting, many ideas around the world that previously seemed implausible because of the dominance of the U.S. economy are garnering renewed interest."

Good G-D, who's side are these people on anyway? We have 5th columnist in this country people, and we won't realize it until after our homes have been shot up and violence and war have been brought to this country, because of the out right treason by those in Government.

[Parmenio]

"All trades are in dollars, effectively giving the U.S. currency a monopoly.

This is the kind of bs statement that gives tin foil hatters (left or right) a bad name.

[econjack]

So, while Washington prepares to commit political hara-kiri, Iran is preparing to take away a little of the capitalist glow from New York and London. If the Chinese decide to start paying for their Iranian purchases strictly in yuan, expect the trickle away from the dollar in energy pricing to become a stampede

My guess is that the idiots in Washington don't even understand what's stated in this article. If Obozo has one neuron still firing and gave a damn about this country, he would have lifted all bans on drilling, including on-shore, off-shore and ANWAR, months ago. But that's not his plan. He wants to drive this economic system into the ground and the stoneless politicos in DC are following his lead in lockstep. I just can't believe the MSM and the general public are so friggin' blind.

[RitaOK]

” If Obozo has one neuron still firing and gave a damn about this country, he would have lifted all bans on drilling, including on-shore, off-shore and ANWAR, months ago. But that’s not his plan. He wants to drive this economic system into the ground....” <<<

You have capsulized Obama’s intentions. We genererally accept that this catastrophy was/is purposeful, planned and now institutionalized, from the beginning. The enablers are near half of the American people, composed of mostly the former minorities who are now the majority in many states, and the galactically stupid who voted Obama into office.

Now where does the enabling itself come from? It has to be from your local public schools, the teachers union, university and academia, who skew the curriculum to promote feminism and marxism. We have said little and done nothing, and neither have our representatives.