Sunday, December 31, 2006

Foundations Shaking

Many pundits and websites put forth the idea that Iran’s real crime against the world is that they are not playing ball with the global financial puppetmasters who control the money supplies. I include myself in this list of pundits. I think the idea has merit, although I do not trust this Ahmadinejad fellow. In order for dollar world hegemony to be maintained, all the major middle east oil countries must sell their oil only for US greenbacks. This arrangement stems from the post-Bretten Woods system that resulted from Nixon closing the gold window completely in 1971.

A major oil producer like Iran shifting its financial transactions from dollars to euros would greatly undermine the need for other countries to hold dollars in reserve. If countries like China and Japan who hold literally hundreds of billions - if not trillions - in reserve decide they no longer need to do so, and sold off these dollar assets, those dollars would come back into circulation in America. The result: insane hyperinflation overnight.

Read the rest - worthy of consideration

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