Continuing Cracks: Part 12

In case your don't recall, the cracks I refer to are cracks in the structure of the US Dollar, which, I'm sure you know, is backed only by belief.

Recall that on November 3, 2000 Iraq switched from doing oil business in USD to euros (when they cost 83 cents) and that the first thing the US did after invading Iraq was to switch Iraq back to USD. Hmmmm….

And now, what have we here …. (from Al Jazeera by way of GATA)

By Emilie Rutledge 11/3/05

"Iran's decision to set up an oil and associated derivatives market next year has generated a great deal of interest. This is primarily because of Iran's reported intention to invoice energy contracts in euros rather than dollars.

[snip]

It is primarily the United States that stands to lose out from any move away from the petrodollar status quo; it is the world's largest importer of oil, and a move away from invoicing oil in dollars to euros will undoubtedly have a negative effect on its economy. Fewer nations would be willing to hold the dollar in reserve, which would cause a significant devaluation and result in the loss seigniorage revenues. In addition, U.S. energy-related companies stand to lose out as they will be unable to participate in the bourse due to the longstanding American trade embargo on Iran."