India to pay gold for Iran oil, China may follow

pmbug

Your Host
Administrator
Messages
7,433
Reaction score
15
Points
193
Location
Texas
...
This really is big news folks because what started out as a "threat" by the U.S. has turned out to be an expose’ of the Dollar’s Achilles heel. Yes I am sure that China’s trade would have been disrupted to some extent but the decline in demand for Dollars would (and will in the future) have torpedoed the Dollar unlike any event seen before. This "blink" shows that our fearless leaders finally have figured out the errors of their logic, what would have been a broken leg or arm requiring maybe 6 weeks to heal for China turns out to not be worth pointing a fully loaded gun at our own heads.

So we didn’t pull the trigger so all is well, right? No, the damage is done and our bluff was called, this rabbit is not going back into the hat no matter how hard we try. The SWIFT system has already been "skirted" by multiple side deals where countries plan to settle in their own currencies. This is the same thing as when a banking system actually goes down, yes trade and business slows but deals are still made and settled in barter. I don’t know what the logic was that excluding anyone from the SWIFT system was such a big stick but it surely isn’t and now can no longer used for any leverage. While China was touring the globe and doing deals (buying up resources), they were making these alternative settlement deals AND just so happened to purchase the LME which, oh by the way, will be moved to Hong Kong.

I do want to mention something that was questioned and even laughed at for months now, June 27th. Does this day ring a bell? June 27th was the day that Jim Sinclair said would be an inflection point for the Dollar where the world would be changed forever. Well, the 27th came and went, yet to the average snoozer and probably most of the whiners who wrote in, in total panic to Mr. Sinclair, the world is still here and nothing has changed. Well, the world has changed and the U.S. no longer has the financial big stick called "SWIFT" to wield, we wasted it and it now resembles wet spaghetti! Is the Euro up because Europe has figured out how to "save itself? Did they really come up with a plan? No, the one minor detail as it always is and has been is, "where is the money coming from". Coincidence that Gold is up $50 today? I think not, Gold is depressed yes and deserves a wicked bounce, that is the nature of cycles but I find it very hard to believe that Gold is "up because Europe is not going to collapse". First off, if Europe does collapse in a heap, Gold will explode in value as Euro capital will accrue into Gold’s value. I personally think that Gold’s move today is in response to the Dollar’s Achilles heel being exposed.

Was Jim Sinclair correct about June 27th? I think that this time he has split the many of his previous bullseye calls right down the center like Robin Hood. His $1,650 Gold call was off by a whopping 6 months even though he made the call 9 years earlier! This time he missed by a day because it took roughly 24 hours for the world to figure out that the "SWIFT bluff" not only turned out to be a bluff but turns out to be a MAJOR shift in power from West to East. China no longer needs the SWIFT system yet we HAVE to have it to create (false) Dollar demand. This, while at the same time COMEX is losing it’s importance as the LME moves to Hong Kong with contracts that can be trusted.
...
http://www.jsmineset.com/2012/07/01/jims-mailbox-975/
 

pmbug

Your Host
Administrator
Messages
7,433
Reaction score
15
Points
193
Location
Texas

kjansen1969

Fly on the Wall
Messages
52
Reaction score
0
Points
0
Location
Houston, Texas
India might have taken this decision due to the current spiraling of dollar exchange rates against rupees but they probably couldn't realize the fact that they would never ever be able to buy gold at the price which they currently have in their reserve
 

ancona

Praying Mantis
Messages
3,370
Reaction score
0
Points
0
Location
Waaay south
Switzerland has never really bowed down to anyone. Their strategic location makes a land invasion incredibly difficult, and the fact that every single adult has a rifle and ammunition helps as well. Their importance in international finance makes them someone we had better not mess around with, because while they are small, a huge proportion of the worlds wealth resides there, and as we all know, he who has the gold gets to play by different rules.
 
Last edited:

swissaustrian

Yellow Jacket
Messages
2,053
Reaction score
0
Points
0
Switzerland has never really bowed down to anyone. Their stratedic location makes a land invasion incredibly difficult, and the fact that every single adult has a rifle and ammunition helps as well. Their importance in international finance makes them someone we had better not mess around with, because while they are small, a huge proportion of the worlds wealth resides there, and as we all know, he who has the gold gets to play by different rules.
That's slightly overstated. Switzerland is slowly losing it's sovereignty to the EU / UN / IMF etc. It's a slow process but the trend is worrying. We're abandoning our traditions and principles, just like the US started in 1913. We started in the early 1990s when we went off the gold standard.
 

pmbug

Your Host
Administrator
Messages
7,433
Reaction score
15
Points
193
Location
Texas
Turkey looks to be the gateway...
...
Central bank demand internationally continues and demand for gold in the increasingly volatile Middle East remains robust as seen in data from the Istanbul Gold Exchange.

It showed that Turkey’s gold imports were 11.3 metric tons last month alone. Silver imports were 6.7 tons, the data show. Much of these imports may be destined for Iran where imports have surged an astonishing 2,700% in just one year – from $21 million to $6.2 billion.

In the first seven months of this year, Turkey's exports to Iran have also skyrocketed to $8 billion, up from $2 billion in the same period last year. And it is widely believed that the major portion of the increase, which is $6 billion, stems from the export of gold.

There is speculation that the Iranian central bank is buying gold and that they may be accepting gold in payment for oil and gas in order to bypass western sanctions.

Turkey is paying for the oil and natural gas it is importing from Iran in gold, Turkish opposition deputies have claimed, drawing attention to the enormous increase in Turkey's gold exports to Iran in 2012.

“Gold is being used as an instrument for payment. Under the guise of exportation, gold is being sent to Iran in exchange for oil,” Sinan Aygün, a deputy from the Republican People's Party (CHP), has told Turkish daily Today's Zaman.
...
http://www.zerohedge.com/news/iran-...8-billion-ytd-gold-increasingly-used-currency
 

pmbug

Your Host
Administrator
Messages
7,433
Reaction score
15
Points
193
Location
Texas

Aubuy

Ground Beetle
Messages
501
Reaction score
0
Points
0
For Thanksgiving I am going to give thanks for Turkey, and then eat one.
 

pmbug

Your Host
Administrator
Messages
7,433
Reaction score
15
Points
193
Location
Texas
Reports that Russia and Iran were negotiating a ...

... $1.5 billion-a-month oil-for-goods deal was first revealed in news reports last week and threatens to undermine the credibility of White House claims that Iran would receive only $7bn in phased and reversible sanctions relief in exchange for nuclear concessions, experts said.

...

"If the reports are true, such a deal would raise serious concerns as it would be inconsistent with the terms of the P5+1 agreement with Iran and could potentially trigger US sanctions," Caitlin Hayden, spokeswoman for the White House National Security Council, told Reuters who first reported the existence of the deal.

On Sunday the so-called P5+ 1 grouping of world powers - Britain, China, France, Russia and the United States plus Germany - announced it had reached agreement with Iran on the terms of a six-month interim agreement which will come into effect on January 20.

Under the terms of the interim deal agreed in November, Iran agreed to suspend parts of its nuclear enrichment programme that Western powers and Israel say is a thinly-disguised attempt to develop a nuclear bomb.

The six months of "breathing space" is designed to create a window of opportunity for a comprehensive agreement. In return, Iran was granted limited sanctions relief that was valued at $7 billion (GBP4.25bn) by the powers.

The White House admission that it was concerned that Russia could already undermining the sanctions regime came as Barack Obama again urged Congress not to pass fresh sanctions legislation designed to keep pressure on Tehran as the negotiations proceeded.
...
http://www.telegraph.co.uk/news/wor...out-Russias-oil-for-goods-deal-with-Iran.html
 
Top