Raise the Hammer
Back in August, as part of my series on peak oil, I wrote a sidebar article on Iran's plan to introduce a euro-denominated oil exchange in March 2006.
At the time, I added it almost as an afterthought, but it seemed be the proverbial right piece at the right time, because a number of other sites picked it up. To this day, the article is still one of the biggest inbound links to RTH.
Part of its timing related to the strong US push to demonize Iran and accuse it of developing nuclear weapons. Many of the US government's rhetorical devices were remarkably similar to those used to mobilize public opinion against Iraq. (Later, I wrote a blog entry comparing the campaigns against Iraq and Iran and examining the case against Iran more closely.)
As we approach the launch date of the oil bourse, interest in Iran is picking up again. I just read an excellent overview of the role the US currency - and particularly the oil-for-dollars arrangement the US has with OPEC - plays in maintaining American hegemony.
The dollar hegemony that has allowed America to live far beyond its means for decades is under serious threat, and it will be interesting to see how it plays out, and what that means for the US economy - especially as Canada seems poised to elect a federal government determined to establish much closer economic and military ties with America.
By jason (registered) | Posted January 19, 2006 at 09:57:34
Of course, it gets harder and harder to ignore Iran as their leader spouts off about wiping certain ethnic groups off the planet and the like. Whether the US had already focused on Iran due to the petro-dollars remake, the new Iranian leader isn't helping his cause by issuing threats and crazy statements on a regular basis. I'm sure the US doesn't mind - it gives them a good excuse to go in there and deal with this guy, and more importantly in their minds, the oil situation.
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