Iran and the US dollar by Malcolm


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Dandelion Salad

Malcolm’s Blog

Aug. 28, 2007

Here is a simple story about Iraq and the United States. The problem with any simple explanation of the Iraq invasion is that it hides the complexity of the situation. True enough, the United States has interest in the oil: just look at the oil policy it is trying to force on the newly formed government. From a different perspective, the former CEO of a major US oil corporation seemed quite certain that the major reason for the invasion was to maintain the dollar as the dominate world currency. When he mentioned this during the summer of 2003 it looked like yet another Republican rationale, but the topic of dollar dominance is starting to get some visibility as global oil distribution meets greater global demand.

Several news items relating to these issues are currently posted at Alexander’s


Regions of the world are listed on the front page, and after selectiing one, article titles are scrolled in the left column while articles appear in the center by clicking on the titles. The mere frequency of the topics suggests what is relevant in today’s current events. Previously listed articles included topics covering China’s oil drilling in Sudan, and India’s state run oil company building the pipeline connecting the oil fields to the port city allowing for China and India to buy the oil. Of course, this is part and parcel to the protest over China holding the Olympics while abetting the genocide in Darfur, the region of Sudan from which the oil is being taken.

More recently the topics tend to deal with the collaborative projects that are developing between Iran and the other countries in the region such as Iraq, Turkey, India, Greece and Turkmenistan. These projects involve everything from running pipelines from the Middle East to Europe; and Iran and Indonesia building a $5.6bil refinery. Austrian petro company OMV spokesman Thomas Huemer is quoted as saying they are “…only talking about our project …an LNG project and contracts” with Iran but they have signed a ‘memorandum of understanding’. Source cited: Turkey is also investing in the South Pars gas field, and they like Austria are doing so in EUR$, not US$. Iran is asking Japan to pay for oil/gas in Yen. And from the article titled Iran to maximise oil income in non-US currency is the line “Iran, OPEC’s second biggest producer, exports around 2.3 mm bpd of crude, with up to 65 % of that volume moving into Asia” Source cited: / Persian Journal. A senior official with the state-owned National Iranian Oil Company is quoted, “As long as the dollar is weak, the best decision is for us to move away from it… .”

For the ultimate afront to the great liberators that tried to pull a fast one by securing Iraq’s oil for multinational oil corporations comes a new story line: Iran and Iraq have signed an agreement for the first Iranian power plant to be built in Iraq. From the article: Iran and Iraq to establish first joint power plant is at least a clear signal that old enemies have now become good friends. So it is that the United States attempted to secure it’s Empire for the New American Century and alienated the world, exported it’s jobs and cornered itself into mountains of debt. This perhaps has set the stage for al-Maliki to find other friends of which there are now plenty. But by invading and occupying Iraq, they have done what they least intended and forced a decline in the dominance of the US dollar.