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US Further Sanctions To Prevent Trading With Iran With Gold

Comments Off on US Further Sanctions To Prevent Trading With Iran With Gold

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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Uruguay to Barter Rice For Iranian Oil

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The sanctions against Iran have in recent months resulted in countries trading with Iran for oil using commodities and non US dollar currencies. The latest, has been Uruguay announcing that it is going to trade rice for Iran’s oil. These sanctions have clearly backfired and only hasten the end of the US Dollar as the world’s reserve currency. Already this week at the BRICS summit there has been calls for a “BRICS Bank” which would reduce dependence on the western-led financial institutions, the IMF and World Bank as well as  signing two landmark agreements aimed at eventually replacing the dollar with their own currencies for trade amongst themselves.

Uruguayan Agriculture Minister Tabare Aguerre says his country is ready to export rice to Iran in exchange for Iranian oil in the face of the US-led unilateral sanctions on Tehran.
“If Iran is willing to barter oil for rice we will do it and we will take out currency from (the operation),” Reuters quoted Aguerre as saying on Friday.

Uruguay, which is Latin America’s top rice exporter, sold 90,000 tons of rice to Iran in 2011.

Aguerre’s remarks came as the US and EU have imposed tough financial and oil sanctions against Iran since the beginning of 2012, claiming that the country’s nuclear energy program includes a military component.

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