Posted on 01/24/2012 10:33:24 AM PST by Lorianne
India is the first buyer of Iranian oil to agree to pay for its purchases in gold instead of the US dollar, debkafile's intelligence and Iranian sources report exclusively. Those sources expect China to follow suit. India and China take about one million barrels per day, or 40 percent of Iran's total exports of 2.5 million bpd. Both are superpowers in terms of gold assets.
By trading in gold, New Delhi and Beijing enable Tehran to bypass the upcoming freeze on its central bank's assets and the oil embargo which the European Union's foreign ministers agreed to impose Monday, Jan. 23. The EU currently buys around 20 percent of Iran's oil exports.
“The USD is about to lose its status as the world’s reserve currency.”
It sure looks that way. God help us when that happens.
What? The Iranians aren't going to take payment in rupees?(wink)
No, it will drive up the price of gold. The Indians or Chinese do not have an endless supply of gold, so the more of their supply of gold is exchanged for oil will increase the demand for gold on the open market, as they will need more gold to exchange for oil.
If other OPEC nations go to gold as the exchange medium for oil, the US dollar will collapse on the world market, leading to hyper-inflation here.
Oil is the real currency today. It has real value. I do not know why Iran would trade oil for gold .... except to tank the US dollar.
The issue is the gold
The issue is the gold
It’s actually oil. Who in their right mind wants to give away gold, unless something more valuable is being sought after?
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