Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on May 17, 2018

Bookmark and Share

Blowback Begins: EU To Ditch Dollar In Payments For Iranian Oil

Blowback Begins: EU To Ditch Dollar In Payments For Iranian Oil thumbnail

The dollar’s collapse is nearing.  The European Union is planning to switch it’s payments to the Euro for its oil purchases from Iran, eliminating United States dollar transactions.

Just one more nail to the US dollar’s coffin.  Its collapse is all but imminent at this point. The EU has successfully found a way to scoff at potential future sanctions on Iran by openly defying the US; and as an “added bonus,” they’ve helped seal the dollar’s fate.  According to RT, a diplomatic source with the EU has told a news outlet of the decision.

 “I’m privy to the information that the EU is going to shift from dollar to euro to pay for crude from Iran,” said the diplomatic source. 

Brussels has been at odds with Washington over the US’s decision to withdrawal from the Iran nuclear deal, which was reached during the administration of Barack Obama. President Donald Trump has pledged to re-impose sanctions against the Islamic Republic as soon as he is able to do so. The Trump administration also has had plans to topple the current regime in Iran, according to leaked documents, and it looks like they’ve just given themselves the go-ahead:

The Washington Free Beacon has obtained a three-page white paper being circulated among National Security Council officials with drafted plans tospark regime change in Iranfollowing the US exit from the Obama-era nuclear deal and the re-imposition of tough sanctions aimed at toppling the Iranian regime.

The plan, authored by the Security Studies Group, or SSG, a national security think-tank that has close ties to senior White House national security officials, including – who else – National Security Adviser John Bolton, seeks to reshape longstanding American foreign policy toward Iran by emphasizing an explicit policy of regime change, something the Obama administration opposed when popular protests gripped Iran in 2009, writes the Free Beacon, which obtained a leaked copy of the circulating plans. –Zerohedge

However, it in the process, it is highly likely that the US dollar will collapse as nations distance themselves from the United States’ often disastrous foreign policies.  As RTreported, dozens of contracts signed between European businesses and the Islamic Republic could be at risk of cancellation if Brussels obeys Washington’s sanctions. This would damage Iran’s economy and European firms would lose a huge market in the Middle East. Switching to alternative settlement currencies allows both sides to continue trading despite US sanctions and will damage the dollar in the process. 

Earlier this week, EU foreign policy chief Federica Mogherini said that the foreign ministers of the UK, France, Germany, and Iran had agreed to work out practical solutions in response to Washington’s move in the next few weeks. The bloc is reportedly planning to maintain and deepen economic ties with Iran, including in the area of oil and gas supplies.

SHTFplan.com



37 Comments on "Blowback Begins: EU To Ditch Dollar In Payments For Iranian Oil"

  1. Davy on Thu, 17th May 2018 6:16 am 

    The author fails to explain that Iran initiated this change with its policy of leaving the dollar. This has been a factor for some time now anyway. The Europeans will do what is more profitable and negotiated. This still does not explain where the whole issue of sanctions and business will go in the next 6 months. The question is more complicated than the dollar and exchange. It also involves markets. Companies heavily invested in the US market will think twice about dealing with Iran. All you need is this effect to make sanctions at least partially effective. On the other side of the equation is the American policy of sanctions is opening up new ways of operating without the dollar and outside of American influence. This is a complex issue that extremist like SHTFplan dot com exploit for clicks. Hype is taste but empty.

  2. deadly on Thu, 17th May 2018 7:23 am 

    https://bestsellingcarsblo

    Americans are being fed a lot of horseshit, being lied to about Iran.

  3. twocats on Thu, 17th May 2018 7:44 am 

    “dollar collapse is nearing” is, as Davy said, overly dramatic. what does near mean – 10 years, 20 years? It won’t matter at that point anyway.

    but it is clear that the super-hegemony the US has enjoyed since fall of USSR has faded substantially. I think in many ways DJT provides a convenient cover for these countries to disobey the US. The primary role of president is to manager the global empire. Although complicated there are several data points to show that djt is not a good manager. the gutting of the state department for instance took away a lot of avenues of soft power. this stuff needs to be negotiated on the ground, on the grind, not via twitter and haley huff-n-puff.

  4. eugene on Thu, 17th May 2018 7:48 am 

    I don’t have any doubt Americans are massively lied to. Our media is nothing but propaganda to support whatever the powers that be want. I, also, have no doubt we will become ever more isolated which is simply hastened by the present administration. Sending an even worse message is the level of popular support. Can only sell horseshit to those that will buy. I find the average American amazingly ignorant of much of anything.

  5. deadly on Thu, 17th May 2018 8:06 am 

    The link doesn’t work.

    It has the ten best selling cars in Iran.

    No Ford’s and no Chevys

  6. Hello on Thu, 17th May 2018 8:08 am 

    With a low $$ the US can finally begin to export again.

    Are you prepared to see “made in the USA” instead of “china”?

  7. Hello on Thu, 17th May 2018 8:11 am 

    >>>> I find the average American amazingly ignorant of much of anything.

    Just the same as the average European, the average chineese, the average Mexican.

  8. Shortend on Thu, 17th May 2018 8:17 am 

    Trump…. Tiger blood…I’m winning

  9. Dredd on Thu, 17th May 2018 8:33 am 

    Hardly the beginning.

    Who knew in 2009 (First Shots Fired In The Currency Wars).

  10. MASTERMIND on Thu, 17th May 2018 8:35 am 

    Births plunge to record lows in United States

    https://www.yahoo.com/news/births-plunge-record-lows-united-states-051546863.html

    Don’t worry they have a plan for this…

    https://imgur.com/a/T3nxmOZ

  11. MASTERMIND on Thu, 17th May 2018 9:17 am 

    #BREAKING Total CEO says oil price could hit $100 ‘in coming months’

    https://twitter.com/AFP/status/997112664261357568

  12. MASTERMIND on Thu, 17th May 2018 9:25 am 

    U.S. household debt edges up to $13.21 trln in Q1 -N.Y. Fed

    https://finance.yahoo.com/news/u-household-debt-edges-13-140000136.html

  13. joe on Thu, 17th May 2018 9:37 am 

    Dollar won’t collapse. EU might not exist for very much longer after Brexit. France is more likely to collapse into an islam v atheist/secular socialism civil unrest. Germany is getting old and lazy and has to deal with managing the bloated socialist empire its built to protect its dirty diesel car making economy.
    Do people think that Trump is doing this himself? Its part of the plan. Do people realise how much organisation and planning must go into the things being done now? It takes years to move an embassy, Trump hasn’t been President long enough to to just go and do it. Obama could have closed the Jerusalem consulate in 2011 or 2009. The plan is to maintain control, right now the EU is getting in the way of things, the US cant compete with 3 super powers, it can manage China and Russia seperately but the EU as currently modeled won’t exist in 2019. However much europhiles wish to spin it, a central pillar of the EU is going to split off and the rest of the EU nations are not even in lock step. Allot of EU countries support America and some have attended the opening of the embassy in Jerusalem.
    The Euro is now nothing more than a weak deutchemark. Also if anyone is going to benefit its Russia. By pretending to be anti-US the Germans can finish NordStream2 in peace.

  14. Hello on Thu, 17th May 2018 9:55 am 

    >> after Brexit

    Is that Brexit actually happening? I hear conflicting messages. Some say it’s going to be delayed so much till everybody forgot about it, or till the time is ripe to have another vote, or the vote is overruled by politicians on whatever legal gimmick….

  15. Outcast_Searcher on Thu, 17th May 2018 10:14 am 

    The usual nonsense. The FX markets trade $5 trillion plus a day. Any entity with means can hold any basket of currency they want with ease via the FX markets. The whole petro-dollar “advantage” for the dollar is merely a book-keeping issue in the modern world.

    But fast crash doomers keep claiming the dollar is about to crash any day.

    Look at the dollar for the last year, five, ten, etc. A big yawn overall.

  16. Outcast_Searcher on Thu, 17th May 2018 10:21 am 

    Good old minimind. Never look at any financial positives for the US, because that might interfere with your meme of FUD.

    How about the recent or 10 year trend for the ratio of US household debt to GDP? No doom there.

    https://tradingeconomics.com/united-states/households-debt-to-gdp

    How about real median household income? Again, not at all doomy.

    https://fred.stlouisfed.org/series/MEHOINUSA672N

  17. Outcast_Searcher on Thu, 17th May 2018 10:25 am 

    Let’s pretend zerohedge is a credible source of news. Especially bad news, where bad calls are their stock in trade. Too bad their constant calls for short term doom are almost always wrong.

    Let’s pretend a regime change plan for Iran (if real) isn’t one of many military options, if it becomes necessary. Not that it would be good news (leave them alone and the regime will change all by itself in time), but not that it implies some kind of dollar emergency either.

  18. Davy on Thu, 17th May 2018 10:29 am 

    I agree OS, when one sees the entire picture the whole issue of the dollar’s demise is less significant. I feel it would be much better for everyone if the dollar somehow became less important BTW as is happening currently. I might also mention a disorderly demise of the dollar is very dangerous for the global economy. A less important dollar component to the global economy with less political interference would be preferable to what we have today.

  19. MASTERMIND on Thu, 17th May 2018 10:36 am 

    Outcast

    Median income has raised 0.374 over the last 17 years. And you think that is great? Are you mentally retarded? GDP and median income rose in line for the most part for the entire 20th century.

    https://imgur.com/a/pYxKa

  20. Davy on Thu, 17th May 2018 10:38 am 

    “Let’s pretend zerohedge is a credible source of news. Especially bad news, where bad calls are their stock in trade. Too bad their constant calls for short term doom are almost always wrong.”

    Come on OS, the hedge is an amalgamator. Sure some of their news is on site but much of it is off site. I go there because I want to hear the bad news first. I want to hear stuff that is not influenced by global MSM directly. I want financial stuff that pushes the boundaries of acceptable to MSM. I go there to see anti-American news because I am American critical despite what the extremist here like to paint me as. I go to a variety of places. I am not afraid to digest what I read. I find people like you and others always harping on the Hedge are the type that like sanitized news that fits a personal agenda. Saying they are calling for short term doom that is almost always wrong is plain intellectually lite. I find you to be a cornucopian who is worried. Why else would you be here and why else would you whine about the Hedge?

  21. fmr-paultard on Thu, 17th May 2018 10:38 am 

    I’m breaking my temporary retirement temporarily to wish our supertards a happy day and happy Ramadan.

    Secondly, I just want to say the Ramadan 2018 Bombathon counter is up and it scored already.

    Please see thereligionofpeace dot com and enjoy watching!

  22. MASTERMIND on Thu, 17th May 2018 10:39 am 

    Davy

    the dollar is going to get hammered when the oil supply shortage hits in a few years. Look what happened the soviet unions currency the year they peaked in oil back in 1989..It got demolished..

  23. Davy on Thu, 17th May 2018 11:00 am 

    Soviet Union’s currency was a different type of currency in a different time. When is the oil shortage coming and what shape will the global economy be in then? You don’t have the answers to that. You are just speculating your agenda of hard collapse based on peak oil. This is not something the more mature contributors here adhere to. It is obvious the peak oil hype of a few years ago you are hyping again is outdated and in need of rethinking. Many of us here are rethinking its meaning. You are pressuring the board with your version of a hard collapse. This might happen and oil could be the trigger but not necessarily.

  24. Antius on Thu, 17th May 2018 11:00 am 

    “How about the recent or 10 year trend for the ratio of US household debt to GDP? No doom there.

    https://tradingeconomics.com/united-states/households-debt-to-gdp

    How about real median household income? Again, not at all doomy.

    https://fred.stlouisfed.org/series/MEHOINUSA672N

    This doesn’t look positive at all to me. Inflation adjusted household income is no higher today than it was in 1999 – nearly 20 years ago. Household-debt to GDP is about 10% greater compared to then but is much greater in absolute terms, because GDP has risen much faster than middle class earnings.

    This tells me that the party will be over when interest rates rise, which is now happening. Couple that with recent increases in oil price, which will generally push up inflation in service dominated economies. If rates go up by another 1%, a lot of indebted households will find that their living standards are severely squeezed.

  25. GregT on Thu, 17th May 2018 12:11 pm 

    “If rates go up by another 1%, a lot of indebted households will find that their living standards are severely squeezed.”

    According to US MSM reports, almost 80% of Americans are already living paycheck to paycheck, and 56% say that they are already in over their heads and cannot service their current debt loads.

    https://www.cnbc.com/2017/08/24/most-americans-live-paycheck-to-paycheck.html

    The erosion of exorbitant privilege provided to the US by the petrodollar, coupled with rising energy costs and interest rates, equate to extremely troubling times ahead for the crumbling empire. Death by a thousand cuts. Expect war.

  26. MASTERMIND on Thu, 17th May 2018 12:14 pm 

    Greg

    If we go down we are taking everyone to hell with us..So keep cheer leading all you want..You are just asking for your own horrible death.

  27. GregT on Thu, 17th May 2018 12:22 pm 

    “If we go down we are taking everyone to hell with us”

    Get out of debt MM, move as far away from densely populated areas as possible, get involved at a small local community level, and learn how to provide your own food.

    “By failing to prepare, you are preparing to fail.”

    -Benjamin Franklin

  28. MASTERMIND on Thu, 17th May 2018 12:34 pm 

    Greg

    Not every situation in life is something you can prepare for. For example if you drive your car off a cliff..it doesnt matter if you have clean under ware on..And the banks are going to crash and burn so it wont matter how much debt you have. I would actually argue that you should take out as much debt as you possibly can because you wont ever have to pay the majority back. i do appreciate you trying to help me. But if the ship goes down I want to go out with my friends and family.

  29. Davy on Thu, 17th May 2018 12:56 pm 

    “According to US MSM reports, almost 80% of Americans are already living paycheck to paycheck, and 56% say that they are already in over their heads and cannot service their current debt loads.”

    “Canada Is In Serious Trouble” Again, And This Time It’s For Real”
    https://tinyurl.com/y6vvsvt7

    “Some time ago, Deutsche Bank’s chief international economist, Torsten Slok, presented several charts which showed that “Canada is in serious trouble” mostly as a result of its overreliance on its frothy, bubbly housing sector, but also due to the fact that unlike the US, the average Canadian household had failed to reduce its debt load.”

    “The “Reset” Looms – Canadians Start Feeling The Pain Of Debt”
    https://tinyurl.com/y7www8kw

    “The Bank of Canada has increased its key interest rate three times since last summer, prompting some of Canada’s larger banks to raise their prime lending rates. Forty-seven percent of Canadians are feeling the pinch, indicating they will not be able to meet ordinary living expenses without incurring more debt. More than half say that high-interest rates will make it increasingly difficult to repay existing debts, with 33 percent fear that rising interest rates will force them into bankruptcy. Easy credit has provided Canadians with a false sense of security and enticed many into the housing market. With household debt already at an unprecedented level, many homeowners will not be able to refinance their current mortgage debt.”

  30. GregT on Thu, 17th May 2018 1:56 pm 

    “Canada Is In Serious Trouble” Again, And This Time It’s For Real”

    Correct. Canada is in debt up to it’s eyeballs, but nowhere near what the US is, and Canada does not rely on the exorbitant privilege of reserve currency due to the petrodollar. Which is what the above article is talking about.

  31. Anonymouse1 on Thu, 17th May 2018 1:58 pm 

    LoL, what a dumbass.

  32. Davy on Thu, 17th May 2018 3:35 pm 

    A reserve currency is not due to the petrodollar. That may have contributed at one time.

  33. Davy on Thu, 17th May 2018 3:38 pm 

    Weasel, Canada is up to its eyeballs with debt. How’s that for dumbass. Lol.

  34. Sissyfuss on Thu, 17th May 2018 6:32 pm 

    Look frmlatterdaysaintard, we’re not throwing any more retirement partys for you. 15 is more than enough.

  35. Boat on Thu, 17th May 2018 11:49 pm 

    Of course debt goes up when interest rates are low. As rates rise, paying off debt then becomes prudent. BTW interest rates are still historically low. We’re still in a borrowing part of the cycle.

  36. Cloggie on Fri, 18th May 2018 12:28 am 

    Dollar won’t collapse. EU might not exist for very much longer after Brexit. France is more likely to collapse into an islam v atheist/secular socialism civil unrest. Germany is getting old and lazy and has to deal with managing the bloated socialist empire its built to protect its dirty diesel car making economy.

    joe still loves to think that Britain is the center of the universe.lol “Old, lazy Germany” is still export Weltmeister, beating even China.

    Is that Brexit actually happening? I hear conflicting messages. Some say it’s going to be delayed so much till everybody forgot about it, or till the time is ripe to have another vote, or the vote is overruled by politicians on whatever legal gimmick….

    My fear is that somebody will sabotage Brexit at the last moment, especially now with the wild dog behavior of DJT vis-a-vis Iran, May/Johnson are getting cosy again with the EU.

    Optimal road forward (for Europe):

    Britain out
    Russia in (nice nukes!)

    But not before a serious social unrest in the US or a military confrontation between the US and China, for instance over Iran or the South China Sea, or both… breaks out.

  37. Antius on Fri, 18th May 2018 5:06 am 

    Seems like the ‘forces of darkness’ are ruining Cloggie’s country as well. So much for a European renaissance.

    https://www.zerohedge.com/news/2018-05-17/dutch-politician-who-criticized-islam-appeals-discrimination-conviction

    Practically every nation in the western world is turning into a coffee coloured autocracy, where speech is monitored and saying the wrong thing is heavily punished. I wonder who could be responsible for that? Wink, wink.

    We only have ourselves to blame. White man’s apathy and an indoctrinated holocaust guilt complex have allowed the forces of evil to enslave us. We used to be able to call ourselves ‘the free world’. It was always a little tongue in cheek; when mainstream politicians talk about freedom and democracy today, it sounds ridiculous.

    I can remember the absurd spectacle of Tony Blair trying to justify the Iraq invasion on the pretence of bringing ‘democracy’ to the Iraqi people. His government created a new criminal offence for each day of the miserable 13 years that it was in power. They did more to undermine freedom of expression and freedom of association than any other government, save the one that followed them. This sort of oppression would not occur in a country where the party of government was financed by the people it was supposed to serve and worked for their interests. Instead it served the interests of a few hundred wealthy globalist individuals. We all know who these people are.

Leave a Reply

Your email address will not be published. Required fields are marked *