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US Further Sanctions To Prevent Trading With Iran With Gold

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Now that Obama has gotten the election out of the way, he is free to concentrate his efforts on forcing Iran into a war. Turkey is now in the sights of the US as it has recently gotten around sanctions against Iran by purchasing oil using gold. Now the US Senate is considering more sanctions to prevent Iran from trading.

 

Currency wars are set to intensify as the US Senate is considering new sanctions against Iran that would prevent Iran getting paid for its natural resource exports in gold bullion.

The new sanctions aimed at reducing global trade with Iran in the energy, shipping and precious metals sectors may soon be considered by the U.S. Senate as part of an annual defense policy bill, senators and aides said on Tuesday, according to Reuters.

The sanctions would end “Turkey’s game of gold for natural gas,” Reuters reported a senior Senate aide as saying, referring to reports that Turkey has been paying for natural gas with gold due to sanctions rules.

The legislation “would bring economic sanctions on Iran near de facto trade embargo levels with the hope of speeding up the date by which Iran’s economy will collapse,” the aide said.

Last week Turkish Deputy Prime Minister Ali Babacan has revealed a critical detail about a widely discussed Turkey-Iran gold trade boom, disclosing that the Islamic republic was exporting gas to Turkey in exchange for payment in gold bullion. 

It is also reported that Iranians are buying Turkish gold with the Turkish Lira, which is deposited into their bank accounts in exchange for Turkey’s natural gas purchases, the deputy prime minister said at midnight Nov. 22 during a parliamentary session. 

Iran cannot transfer monetary payments to Iran in U.S. dollars due to U.S sanctions against the country’s alleged nuclear weapons program.

Iran has been forced to shun the international financial system and the petrodollar as means of payment and turn to the international gold market to ensure it gets paid for its natural resources in order to prevent absolute economic collapse.

The law of unintended consequences may apply here and should the Iranian currency and economy collapse there is likely to be a war with Israel and turbulence in the Middle East akin to, if not worse, than that seen in the 1970’s.

 

Source: ZeroHedge

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Gold In Iran Up 23% In Last Week

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Iran’s currency the rial  lost over 40% of it value against the dollar last week. There are already stores of hyperinflation emerging from the country that has been majorly hit by sanctions.

“Better buy now,” advised the rice merchant in Tehran. The retired factory guard took him up on the advice, buying 900 pounds of the stuff to feed his extended family for the next 12 months.

“As I was gathering my money,” the retiree told The New York Times, he got a phone call. “When he hung up, he told me prices had just gone up by 10%. Of course, I paid. God knows how much it will cost tomorrow.”

The 3 stages of inflation as described by Austrian economists are:

In the first stage, people still hang onto their money, expecting prices to come down. In the second stage, people part with their money to stock up on goods before prices rise again. In the final hyperinflationary stage, people buy anything they can get their hands on — even if they don’t need it — because the goods are more valuable than the currency.

But as the currency continued to collapse despite the best efforts of the Iranian Central Bank, the people are turning to gold.

Just over a week ago were the first to shed light on the reality of hyperinflation on the ground in Iran – and subtley suggested the whole thing could be watched in real-time. Soon after, a mysterious cabal of 16 currency manipulators was arrested and the Rial jumped dramatically higher (according to official sources) – as if by magic there was no problem at all. This all sounded a little too good to be true (just like unemployment rates in slightly more controlled economies). Sure enough, by the power of social media, we now know it was too good to be true.

As open-market foreign exchange rates – not just Rial-to-Dollar – have disappeared from the major currency exchange sites, as trade has reportedly slowed to near suspension after the Central Bank ‘imposed’ a rate of 28,500 Rials to the USD this weekend.

Critically, though, via EAWorldView, while the ‘real’ rate for the Iranian Real is effectively blacked out, gold prices continue to soar. ‘Old gold coin’ is now selling for 16 million Rials, up 23% from the pre-suspension 13 million Rial levels – even as the

Central Bank tries to suppress reality (especially to the rest of the world’s gaze) as hyperinflation continues – though less transparently.

Source: Forbes, ZeroHedge

US: The Initiation of War With Iran Could Be Helped Along, Wouldn’t Be First Time.

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Patrick Clawson gave an interview at the Washington Institute suggesting that US/Isreal may need to give the war with Iran a “helping hand”, after all Clawson said, Iranian submarines that go down may not come back up.

Its not the first time the desire for war was given a helping hand.

Iran: Naval Power Amassing In Persian Gulf For Iran Attack

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In support of Israel’s preemptive strike on Iran, the US and UK have amassed an armada of naval vessels. Many reports have come out that Iran will attempt to close the Straits when attacked. The battle to keep the Straits open will be of major economic importance to the West.

An armada of US and British naval power is massing in the Persian Gulf in the belief that Israel is considering a pre-emptive strike against Iran’s suspected nuclear weapons programme.

Cruisers, aircraft carriers and minesweepers from 25 nations are converging on the strategically important Strait of Hormuz in an unprecedented show of force as Israel and Iran move towards the brink of war.

Western leaders are convinced that Iran will retaliate to any attack by attempting to mine or blockade the shipping lane through which passes around 18 million barrels of oil every day, approximately 35 per cent of the world’s oil traded by sea.

A blockade would have a catastrophic effect on the fragile economies of Britain, Europe the United States and Japan, all of which rely heavily on oil and gas supplies from the Gulf.

The Strait of Hormuz is one of the world’s most congested international waterways. It is only 21 miles wide at its narrowest point and is bordered by the Iranian coast to the north and the Oman to the south.

In preparation for any pre-emptive or retaliatory action by Iran, warships from more than 25 countries, including the United States, Britain, France, Saudi Arabia and the UAE, will today begin an annual 12-day exercise.

The big war games excercise will be followed by Iran testing out its own capabilities.

In addition, commanders will also simulate destroying Iranian combat jets, ships and coastal missile batteries.

In the event of war, the main threat to the multi-national force will come from the Islamic Revolutionary Guards Corps navy, which is expected to adopt an “access-denial” strategy in the wake of an attack, by directly targeting US warships, attacking merchant shipping and mining vital maritime chokepoints in the Persian Gulf.

Defence sources say that although Iran’s capability may not be technologically sophisticated, it could deliver a series of lethal blows against British and US ships using mini-subs, fast attack boats, mines and shore-based anti-ship missile batteries.

Next month, Iran will stage massive military manoeuvres of its own, to show that it is prepared to defend its nuclear installations against the threat of aerial bombardment

Obama is meeting Netanyahu to discuss Iran but Netanyahu is itching to go ahead.

The main naval exercise comes as President Barack Obama is scheduled to meet Benjamin Netanyahu, the Israeli prime minister, today to discuss the Iranian crisis.

Many within the Obama administration believe that Israel will launch a pre-emptive strike against Iran’s nuclear facilities before the US presidential elections, an act which would signal the failure of one of Washington’s key foreign policy objectives.

…..

But just last week Mr Netanyahu signalled that time for a negotiated settlement was running out when he said: “The world tells Israel ‘Wait, there’s still time.’ And I say, ‘Wait for what? Wait until when?’

“Those in the international community who refuse to put red lines before Iran don’t have a moral right to place a red light before Israel.”

Source: Telegraph

UK: Defence Minister Sacked For Not Supporting Iran Attack

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The Daily Mail ran a story of how the UKs Defence Minister Nick Harvey was removed from his position by Lib Dem leader Nick Clegg because he did not support an attack on Iran. Sounds like war with Iran is a foregone conclusion as this adds more evidence of such a move. These kind of stories and coming thick and fast. Israel’s defence minister Ehud Barak appeared to hint that he believed the US would join his country in the pre-emptive attack.

Former Armed Forces Minister Sir Nick Harvey told friends that he  was fired in the reshuffle to allow Deputy Prime Minister Nick Clegg  to sign Britain up to an Israeli-US preventive strike to take out Iran’s nuclear installations.

Friends of Sir Nick – who was handed a knighthood just days later – say that he could have embarrassed the Lib Dem leader by being too critical of Israel’s actions if he had still been in the key Ministry of Defence post.

The row broke as sources confirmed that British intelligence agents are already deeply involved in attempts to discover Iran’s nuclear secrets.

It is also understood that the US has asked Britain to provide frigates to patrol the Straits of Hormuz, through which much of the world’s oil passes.

The sacking of the respected  Minister took MPs and Army top brass by surprise.

But when approached by The Mail on Sunday, Sir Nick confirmed he had considered his sacking was linked to mounting speculation of a pre-emptive strike on Iran and the expectation that UK forces would be drawn in afterwards. However, the MP went  on to say he had since discounted  that theory.

………

The reshuffle earlier this month came amid renewed speculation  that Israel is planning to launch a  unilateral attack to prevent Iran developing nuclear weapons.

Only last weekend, Israel’s defence minister Ehud Barak appeared to hint that he believed the US would join his country in the pre-emptive attack.

There were also reports that  US President Barack Obama was  poised to set out the ‘red lines’ that would trigger an American attack if Iran continued to press ahead with its nuclear programme.

MoD sources yesterday confirmed that contingency talks over the dispatch of Royal Navy minesweepers to the Gulf had already been held.

…..

‘Clegg could adopt a position of agreeing to disagree, raising his objections to the Prime Minister but saying go ahead.’ 

 

Oil Blockade Good For Iran’s Oil Exports

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Iran’s oil exports have increased since the oil blockade. It appears the oil blockade is only hurting Europe and embarrassing the US.

US: Why It Always Ends In War

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After an extraordinary expansion of US debt, war is inevitable. Below will outline a few reasons why? Of course the politicians do what they are told as always by the banking elites. What better way to deal with a broken monetary system than introduce chaos.

ZeroHedge have outlined the reasons why the US would welcome a war right now.

The old war against terror propaganda is losing ground to alternative news and opinion now available because of the Internet Reformation. Frankly, few people believe anything from either the American government or its establishment propaganda outlets and this is a frightening situation to the power elite that rules America.

Due to the growing economic crisis, the government needs to take strong actions that could be violently resisted by large segments of the US population unless a major financial or military crisis can be used as an excuse and cover for coming dictatorial actions. Simply stated, there are not enough police and military in the US to control the population should an insurrection take place. A major war in the Middle East can provide a casus belli for a direct assault against US private wealth, liberties, benefit programs and opposition by the power elite.

For example, the imposition of a military draft will dramatically cut unemployment rates as well as limit inner-city crime and outrage over cuts in domestic spending and welfare. Remember, austerity is needed and a draconian cut in Social Security and benefit programs must be engineered against the 50 percent of the population who receive some type of government benefits.

In addition, gold will need to be confiscated. Forced retirement investment into collapsing dollar denominated Treasury obligations must be required when foreign investors stop buying US debt. Stronger TSA authority, drones and harsh domestic controls will need to be implemented for the duration of the conflict in order to squelch domestic opposition. Taxes must be raised, penalties and fines must be doubled and tripled at the federal, state and municipal levels and finally, severe limitations on freedom of speech and freedom of assembly will be forced on the American people, along with gun control and limited access to Internet news and communications.

Finally, a major, long-term war in the Middle East will provide an excuse for the deferment and rescheduling of US debt obligations owed to nations and governments that oppose the US/Israel war in the Middle East. For the $1 trillion owed to China and many Middle East nations, this is effectively debt repudiation.

China too would benefit from the US going to war.

China wants to see the US weakened long-term as a world power and a major war in the Middle East will do this. They also need a reason to dump US Treasury debt and an excuse to avoid the blame of the coming broader repudiation of US debt. The Chinese people will be justifiably outraged that the Chinese government and central bank accumulated $1 trillion in US debt, although there were legitimate global trading reasons and domestic economic justification for this over-concentration in US debt and dollar obligations.

A Middle East war would avoid direct military action between the US and China while protecting both US and Chinese politicians from the coming Treasury debt repudiation, Chinese dump and global run on the dollar and Treasuries.

Who is going to be the ultimate winner?

Who is guaranteed to win regardless of the outcome of the war and whether it can be contained? The Anglo-American financial elites and the bankers always win every conflict regardless of the military outcome. This is the history of the 20th century and I see no reason that will change now.

Source: ZeroHedge

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