Madrid forum 13 July 2008
+++SAUDI GAZETTTE 13 July ’08:”The oil bomb”By Humayun Gauhar
QUOTE:” ‘the Iran Bourse will open to trade oil not in dollars but in euros’
EXCERPTS:”IRAN has really gone and done it now. No, they haven’t sent their
first nuclear sub into the Gulf. They are about to launch something much
more deadly – next week the Iran Bourse will open to trade oil, not in
dollars but in Euros” (Scottish Socialist Voice, issue 264).
The Iranian Oil Bourse (OIB) was registered on May 5 this year. The
consequences are horrendous: with the dollar no longer the sole currency
with which to trade oil, its credibility as the benchmark has weakened
gravely and thrown all world currencies into a tailspin – either crashing in
value making essential imports unsustainable, as with Pakistan, or
increasing in value reducing their exports drastically causing huge trade
deficits, as with Europe.
There has been a run on non-oil producing Third World currencies as capital
flight continues unabated, as in Pakistan too. That is why soft currencies
are weakening against all hard currencies while non-dollar hard currencies
are strengthening. . . .