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The U.S. is waging a dangerous financial war with Iran right now.
And if it's not managed carefully, it could embolden the dollar's enemies to mount a counterattack on the U.S. currency.
Such a move could destroy the U.S. dollar as we know it.
You see, the dollar maintains its value as a reserve currency because global demand keeps it that way. As long as the world needs dollars to settle international transactions, it's only going to continue to stay strong against the world's currencies.
But the U.S. Treasury sees the dollar as more than a means to settle international transactions.
It's also a weapon.
As a weapon, the dollar can be used to destabilize rogue nations and inspire regime change.
Or so the Treasury thinks…
Right now, the financial war being waged by the United States is not toppling our adversaries. It's strengthening them…
World Financial War Turns Against the U.S. Dollar
In its effort to bring on the collapse of the Iranian regime and curb that country's nuclear ambitions, the U.S. Treasury set its sights on demolishing the Iranian rial.
As U.S. Treasury official David Cohen said on June 6, 2013, the United States is seeking "to cause depreciation of the rial and make it unusable in international commerce."
After freezing Iran's account at the U.S. Federal Reserve in 2012 and pressuring Belgium to prohibit Iranian transactions in the international SWIFT payments system, the Iranian economy was devastated.
Without access to international payments systems, Iran struggled to receive dollars for its oil exports.
Nor could it use dollar proceeds from oil exports to pay for imports.
This sparked a massive inflationary period for the rial and a run on Iranian banks.
But in locking Iran out of the dollar payments system, the United States had to face the ugly reality underlying this financial war: The dollar is not as effective a weapon as the U.S. Treasury thinks.
Instead the U.S. drove Iran into the arms of an international triumvirate seeking to dismantle dollar hegemony. Iran leaned on India, China, and Russia to circumvent the international dollar payments system.
India swapped gold for oil with Iran. Iran then used this gold to buy food and manufactured goods from China and Russia, in their efforts to stockpile the yellow metal.
The ease with which these four nations can settle international transactions without the dollar reveals a terrifying development in the global financial order…
The dollar is not the only weapon in financial war. And its potency is slowly being eroded – by gold.
"The United States had wanted to drive Iran out of the dollar payments system," Jim Rickards, the Financial Threat and Asymmetric Warfare Advisor for both the Pentagon and CIA wrote in his 2014 book The Death of Money. "But in a case of 'be careful what you wish for,' an alternative non-dollar-based payment system is now taking shape in Asia, and gold has proved to be an effective financial weapon on its own."
But this financial war does not start and end with Iran…
Iran is simply a small part of much more far-ranging global effort to undermine the dollar's role on the international stage. What is starting with Iran portends a financial collapse of a magnitude we've never seen before – one that has the potential to wipe out $100 trillion in wealth… continue reading here to find out how this meltdown will play out and how you can protect yourself…
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If you'll do some research you'll find that Iran was advocating for an alternative to the dollar system well before the turn of the millennium. As early as 1993 Iran was communicating that the dollar system bound them and other oil producers in a market over which they could not exercise full control. it might have been this call to other middle eastern oil producers to attempt to move away from the dollar that led to grater interest in the Iranian nuclear project which had been initiaited by the Shah and was being assisted by the Russians, and the eventual… Read more »
IF, anyone should believe that Iran has won its struggle with America and the West by evading the economic problems created by sanctions, then it would have to be explained why Iran' is so desperate to see any agreement it formally sign on its nuclear enrichment programme, is met by an immediate lifting of wide ranging sanctions especially its biggest revenue earner seeling its oil to other countries. Whatever, one might think of the present US Administration, with the Republican hawks looking over its shoulder, it is not going to get away with lifting sanction before the Iranians are seen… Read more »
Ok it's 6 months later and the US is still playing chicken. lol