Gold for Oil: India and Iran Ditch Dollar – Report
According to a new and yet unconfirmed report, India bought oil from Iran using gold. India certainly has the gold resources to fund the oil, while Iran is under pressure by the West, due the continuation of its nuclear program.
There were reports that officials have been floating this idea for some time, and now, as the EU finally decided upon an oil embargo on Iran, more details became available, yet still pend confirmation.
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Oil is priced in US dollars, and bypassing the greenback posed challenges for both parties. Two banks are reportedly involved in this deal: India’s state owned UCO Bank and Turkey’s state owned Halkbank.
Both banks don’t have any business with the US and therefore are less vulnerable to sanctions. According to the report, an Indian delegation has spent time in Tehran and finalized the details of the transactions.
The annual capacity of trade between these two countries is 12 billion dollars. With gold trading at around $1668, that is around 7.2 million ounces of gold.
The step joins Russia and Iran’s announcement to begin trading in their own domestic currencies rather than use the US dollar – a reserve currency.
These details about the gold for oil deal come on the day that EU officials announce an oil embargo on Iran starting on July 1st. Tensions between Iran and the West are mounting and oil is already on the up.
The time it took the EU to reach the decision, and the late implementation date make it very easy for Iran to enlarge exports to oil hungry and fast growing Asian countries.
The use of gold for buying the No. 1 commodity, will likely have positive implications for the precious metal, if this report is confirmed and especially if the use of gold widens to China – the world’s No. 2 economy.
Further reading:
- Gold and Silver 2012 Video Report
- Gold ATMs Going Global – A Sign for Currencies?
- 5 Reasons Why Israel Will Not Attack Iran – But if It Will, How will Currencies React?
Please do not lump American citizens with American politicians! We have no say in the actions these thieves perform as they have locked us out of the decision making process with their laws and cops. We realize their actions attempting to be world police is a bad move but they are so focused on one world government that they have no common sense anymore. All we can hope for is a change because of the November presidential election or worse case scenario of a short overthrow of these idiots…I prefer the former to happen…vote them down!
You got that one right. The problem being, as you can see on this site that far too many Americans are fooled by crooked politicians, and are willing to risk everything to see if they can get a bigger piece of a pie for themselves
Donald,
That is completly correct the citizens do not deserve or need to be draged into this . I think we should just let India and Iran figure it out. It is not the United States proublem if they cant take care of them selfs.
Unless you are willing to vote against ALL these Bilderberg slugs, you ARE part and responsible for this crap…Vote Ron Paul…
Bye Bye U.S.A.
Forget Spanish…….learn Chinese or Russian.
I just love the armchair generals on the net. Too many predictions.
That is compleetely true
“Cui Bono” asked the Roman judge (Who benefitted) That is all that determines the guilt. Most ridiculous thing I heard is that Russia was responsible for 911 (Macabee) All you have to do is look around you in JewSA, and you do not have far to look to find the culprits, not only those who attacked this country but also those who are deliberately in process of destroying it economically.
This is a HUGE development.
If this trend continues, the Dollar will be devalued even further until it plummets.
That is a good thing.
This is an opportunity to let the fractional reserve, fiat system to collapse and allow for the return of the Treasury Note and monetary policy that is controlled by congress and the people, rather than private bankers.
Research the History of the Federal Reserve and the various Central Banks around the globe. They print money and sell it to our governments on interest, creating a perpetual debt cycle that is impossible to clear.
Want to know what Federal Income Tax is used for?
Paying the debt to the Federal reserve, every last penny of it.
States taxes and spending are the ones who handle most of what people assume the Federal taxes and spending are allocated for.
Lets hope this continues to develop so that we can usher in the return of SOUND MONEY.
Yeah, and while the US returns to the treasury note and abolishes the Central banks, we live in hyper inflation as a 3rd world country. Sounds like a good idea.
While it is inevitable that the fiat dollar will someday lose its reserve currency status, our Foreign Policy and Dollar Reserve Status are essentially the same thing. Other countries such as Iraq and Libya which had been trading oil for currency other than the dollar and gold have had their entire economies wiped out in order to maintain the dynamic where all nations hold dollars for future oil purchases which allows for manipulation of the dollar without immediate swings in value.
This certainly seems to be a trend which is being followed regarding the saber-rattling around Iran and like Libya and Iraq the excuses of ‘humanitarian reasons’ will not be the cause of our aggression against Iran but instead a push toward compliance with western wishes that Iran only sell oil for dollars so that other countries will hold on to dollars. This would also be a very good explanation as to why the Chavez regime is also seemingly in the cross-hairs.
While it is true that the dollar is only backed by military reprisal or the withdrawal of military protections depending on which foreign country’s monetary policy is being influenced, the loss of status as The World’s Reserve Currency would have a devastating effect on American and would essentially stop all borrowing which creates all of our money to begin with.
This might lead us back to a more moral monetary policy and also a more moral foreign policy but the initial pain will be significant and the loss of reserve status will most certainly slow American economic recovery.
Wow…what an original idea…blame the Jews for everything…after all, it’s got to be their fault…they just LOOK guilty…
If you had inserted ANY other people group in place of Jews (think Muslims, Hindus, Christians) do you see how ridiculous your line of reasoning is…?
Citizens of the USA don’t want to be lumped together with their leaders in Washington. So don’t blame a group of people for the actions of a few of their members.
Oh come on, Israel wags the US dog, everyone knows that. To pretend that the wars in Iraq and (and if Israel and the Neocons have their way it’s way WW3 in Iran) the destabilization campaigns in Libya, Syria and Egypt, etc. weren’t for the benefit of Israel, or to pretend that Israel isn’t the largest recipient of US aid, well, let’s just say that it’s not without merit to examine why so much of US policy is Israel based.
Exactly how did the “destabilization campaigns” in Egypt, Libya, and Syria benefit Israel? The ascendency of the Islamist factions surely cannot what Israel wanted, and any other outcome following the overthrow of Gadhafi, Mubarak, and Assad (should that come to pass in Syria) was (is) unlikely, to say the least. Are you suggesting that Israel went ahead and rolled the dice, hoping for a miracle? Sorry, but they haven’t survived since 1948 in the cesspool that is the Middle East by being that stupid.
look up jews false hate crimes then ask yourself what other group of people feel the need to attack themselves in such a fashion to play the victim card and dont compare others who dont to them
India needs to be warned against this. Iraq and Lybia did this look what the US did to those countries. The confrontation with Iran has less to do with nuclear capabilities and more to do with petro-dollars. Dont mess the the private Federal Reserve banking cartel or else.
I say invade India.
Invade India?
Are you gone nuts! 1.3Billion ppl and counting. By the time we get our planes and ships there add a 100m to their population.
India is your only friend in the region so better not play politics with them.
If India is our only friend why are they doing deals with Iran in gold? If they were are friends they would tell Iran to pound sand.
Aside from Kikes US has no other “friends”
When people toss names around like kike, it’s no wonder they don’t have friends. Straighten up.
Indian people are the biggest wimps on the planet. I wouldn’t be too concerned just because they have ‘a lot of people’.
If you cannot subjugate few thousand Taliban, who do not even wear boots but sandals made out of the US truck tires, HOW IN THE DICKENS YOU GOING TO BEAT ANYBODY? Doy ou realize that US troops are only safe behind the protective walls of their camps, and even there they are getting killed.
You really are crazy if you think that we need to invade indea beacuse we will only get our butts kicked
Pretty sure Jason was not serious. But there are other ways that the US can put the squeeze on India and they won’t like it one bit.
So if India does not kissy assy to the know-it-all Amerikana, we invade…this is why we are a broke and sorry excuse for a nation…
None of these oil wars are over the oil. They are over the way the oil gets sold. Countries that sell oil for anything other than dollars allow buyers to not hold on to vast volumes of dollars which prevents maniupulation of dollar supplies by the proprietary issuing banks that actually control our government. Countries such as Iraq and Libya get their regimes changed when they do this while countries that play along like Kuwait get protection and countries like Qatar who are getting rich in the process play along militarily.
We don’t need to invade India!
Just add a punitive tax to all phone calls going to and from India. That will gut their tech-support industry.
As an Indian, I want the US to invade and liberate us from the corrupt aholes running the country. Just keep dropping bombs. We want to start fresh.
Yeah sure, did you ask Vietnamese, Iraqis and Afghanis how they liked their liberation?
I agree with you entirely. It should be obvious to all of us by now. We protect generational Monarchies with deplorable human rights records because it is they play the game an cause other nations to hold onto dollars. Other countries such as Egypt have been bribed in order to play along and countries such as Iraq and Libya have their economies entirely destroyed and future profit making chances eliminated because it is more important to save the banking dynamic that what might ever be made from honest trade.
Iran and Venezuela are problems only because of the way they are selling oil.
As to the current issues with Iran and the Strait of Hormuz most people refuse to or can’t see the forest for the trees. I agree that no matter what action if any is take in regard to Iran that their will be consequences and repercussions to any decision the is made and remember doing nothing is a conscious decision. The true question becomes if nothing is done to prevent the Iranian nuclear program to reach its inevitable and obvious conclusion and two to three years from now the outrage that will come form both the left and the right as to why the U.S. didn’t stop Iran and or others when a nuclear device is detonated in London, New York, Los Angeles, or some other major population center.
India already has the bomb. Iran is a target because they are selling oil for something other than dollars. India’s actions are just a symptom of Iran’s policy at least from the perspective of the issuers of proprietary US currency who want countries like India to hold onto dollars before spending them on oil. Iran is allowing India to not hold on to dollars. This is why Iran will be attacked. Nukes have nothing to do with the economics. Wars are ALWAYS fought over economic yet given different excuses.
Oh great!
Now we have to attack Iran AND India to save the all mighty dollar from these “terrorists”.
That is what got Gaddafi and Hussein murdered.
Don’t you believe what the BANKSTERS say.
i am studing anbout this curent event i think that yuo dont know what yyur talking about
You don’t study well. Around the 2000 election, Saddam demanded payments for the oil for food program to be in Euros. Qaddafi was doing something similar and wanting to bypass the us federal reserve note (not technically a dollar). But good try on flinging bs at the bs detector.
…and you defeated the both Gaddaffi and Saddam…Figures!
He knows a little. Keep studying.
India has the rights to do what is in its best interests. Growing economy,alleviating poverty requires uninterrupted oil flow.
Has Iran bombed buses, trains and malls inside the USA? But Pakistan did bomb and kill innocent Indian civilians. USA would not listen to India’s pleadings and pump in billions of dollars and weapons to the terrorists i.e pakistanis.
Looks like Ron Paul was right, and Beranke wrong, Gold is money
Thats just the thing gold is mony so i think that we should just open up mines and get more gold for mony because we are also in debt
Trading gold for a disposable resource strikes me as desperate. If India commits to this strategy, they end up goldless and oilless in the end.
I’ve never understood the conspiracy theorists’ obsession with the “reserve currency.” Sure, central banks have to buy the reserve currency, but central banks use a reserve currency because its convenience outweighs the transaction cost of acquiring it.
Iran and India could trade in Rupees and Rials if they wanted to, but both countries’ central banks would still incur a transaction cost from having to buy the other’s currency. If they trade in gold, both countries will incur a transaction cost for buying gold. Once they buy the gold, they will need to ship it to the other country. 7.2 million ounces of gold works out to be 450,000 pounds. (Over 245,000 kilos for thse of you who use those crummy French weights and measures.)
Good luck moving that without anybody stealing it.
There is only one Reserve Currency – The US dollar which became the default reserver currency because it was positively valued when the previous reserve currency (Pound Sterling) went fiat.
All nations hold reserve currency in order to purchase the world’s oil which until recently was the ONLY way for buyers to buy oil. When the dollar was gold-based this was of course fair and there was no reason to coerce other nations to use dollars.
Since going off the gold standard the United States has used coercion in order to keep the dynamic going. Now that the dollar is fiat and with the dynamic still in place, the proprietary issuing banks can manipulate the supply while other nations hold dollars in reserve which slows value fluctiation of dollars and these issuing banks suck wealth right out of the back pockets of everyone.
If other countries don’t hold onto dollars in great volume, manipulations in dollar supply would have an immediate effect on the dollar’s strength. If oil producers sell oil for anything other than dollars there is no need for other nations to hold on to large volumes of dollars. This is why regimes that sell oil for anything other than dollars have their regimes changed with regimes which will play by the rules and only sell for dollars.
Those transaction costs and inconvenieces you speak of are nothing in comparison to the amount of wealth that gets sucked out of dollars by the issuing banks.
This only proves just how informed, honest and courageous Congressman Ron Paul is. He’s calling out the Fed on behalf of America and yet he’s laughed at and booed.
Dear Ronbot -
Your comment has absolutely no relevance to this situation. Ron Paul is a whackjob and so are his minions.
Care to elaborate – specifically?
Why isn’t your retort to prove Ben wrong by using facts?
My guess is because you’re completely clueless about value and free trade, the federal reserve and paper currency, and the differences between non-intervention and isolationism.
Now prove me right by throwing around more insults.
dear dawgbyte
your comment is just as irrelevant, if not more so. Paul is calling out the fed and last time i checked my money said federal reserve note on it. Are the foreign central banks getting us dollars that are coming straight from the us treasury? sure many people that are pro-paul are very, lets say excitable, but they seem way more informed than your ignorant, condoning ass.
Dear Status Quo Lemming,
Your comment is all anyone with a single operating brain cell needs, to know you are utterly, painfully…yet comically….clueless.
Rex Ronbot -
Take your placard waving whackoisms somewhere else.
Sorry, DawgByte, but this is exactly what Ron Paul always talks about. Economics and politics, inseparable.
DawgByte – An insult without an explaination is worthless. If you know what you’re talking about, then by all means please elaborate. Otherwise, stick around and you might learn something.
There’s no arguing with Ronbots… facts are meaningless. They’re programmed, hence the name.
The Fed has nothing to do with this situation. As it happens, the dollar is the currency used to trade oil. These two countries and are attempting to use another standard to skirt the oil embargo. Russia and China have been whining about being tied to the dollar for the better part of two years. One has to ask why that is… the answer is very simple if you know anything about those two regimes.
First of all, those ‘regimes’ as you call them are only acting in their best interests. Russia is buying because its cheap and China is doing everything it can to get away from holding dollars because they know where the dollar is going – down. They’ve been trying to divest themselves from Treasuries as fast as they can these last years because we are in debt to them for way more than they are comfortable with and they’d be dumping Treasuries faster than they already are but they don’t want the price to fall any faster than they have been. They’re still holding debt from before it was the money supply tripled. You can’t blame them. The main buyer of the Treasuries China has been dumping has been the Fed itself, and that my friend is not at all a good sign.
And speaking of the Federal Reserve, yes, the Federal Reserve has everything to do with this. Everything begins and ends with the Federal Reserve because the Federal Reserve is the banks that issue their own form of proprietary currency which all the rest of the world is forced to deal in when trading oil. Don’t kid yourself into thinking we at all have a Nationalized Central Bank. They are the ones that manipulate the supply of the currency while it is others hold vast amounts of dollars out of circulation awaiting future purchases of oil.
You’ve got the chicken confused with the egg: The reason there is an embargo is because of Iranian trading practices. These practices are not a result of the embargo, but instead the other way around.
And so it begins. India isn’t even our enemy…but now that it has dumped the dollar, the domino effect of nations will occur. China and Russia are next. America will be a pauper nation by next Christmas…and Oba-Mao will suspend November elections as we spiral into the abyss. When gas hits $5 a gallon, remember this post. When it hits $10, it will be too late. When it hits $20, America fails, and your Communist, Kenyan Usurper wins!
Don’t get crazy, just get active.
Only 7.2 million ounces? That is 225 tons of gold. That is almost half of India’s total gold reserves!
This will NEVER happen.
“Only 7.2 million ounces? That is 225 tons of gold. That is almost half of India’s total gold reserves!”
YOU ARE ASSUMING THE PRICE OF GOLD vis-avis OIL will remain the same! The price of gold will rise faster than the price of oil. This means oil will be cheaper in gold bars.
That’s the nature of fiat (paper) money. It’s value always goes to zero because governments will always print more paper and confiscate your paper money saving (stored labour wealth).
“The price of gold will rise”
Hold on there…as a reserve currency: gold is supposed to remain the same (value) and everything is supposed to be compared in value to it. Example: Gold is valued at $1668 per ounce…then goes to $1695 the next week. Did gold change or did the dollar de-value?
The problem with tangible commodities (gold/oil, etc) is they ARE subject to being devaluation IF the World Bank decides to do so with any currency comparison. Gold is a potential bubble as it were back in the early 1980s when millions of people lost a lot who had gold.
The fact is, unless every country agrees that gold is the monetary reserve, it remains a commodity that is subject to manipulation. I don’t see the globalist giving up their grip on people’s wealth through inflation.
Watch the price of gold plummet at some point (big sell off) and/or a new currency arises that forbids gold transactions – with the excuse of taxing the wealthy – plunging people to poverty who converted the majority of their wealth into gold.
You do not understand the first thing about the international transactions
The Indians are skirting a very important diplomatic strategy to prevent Iran’s nuclear weapon ambitions. If I was Obama I’d call the Indian Ambassador to the U.S. into the Oval Office and explain to him that if India doesn’t comply with this embargo I would encourage Congress to draft a law making it illegal for U.S. companies to outsource to India. That will most assuredly get the Indians attention as to the seriousness of their mistake.
I would simply draft the bill anyway, not as a diplomatic solution, but as an economic solution.
The WMD excuse is BS. The WMD excuse was BS in Iraq and it was used for the very same reason it is now: It is in the interest of the banksters that contol our government to see to it that the proprietary currency they issue is held in large volume by all the purchasers of the world’s oil. Any country which allows for the sale of oil in any other form releases other countries from the need to hold on to dollars in reserve. If large volumes of dollars are not held in vast supply, the supply of dollars can not be manipulated by issuing banks without immediate effect on the strength of the currency. This prevents issuing banks from using newly created dollars as if they were more scarce and thus more valuable than they acually are.
The WMD thing is just an excuse even if it is this time there are in fact WMDs. Wars are ALWAYS fought over economics yet we are usually given different excuses.
Obama will neverr put India’s feet to the fire; Big Business has bpought his soul and he is bound to dance to their tune. The American people will, before all is said and done, be freezing in their homes due to lack of fuel. Jobd will be lost because folks can’t afford gasoline to get to work…and Obama’s wish/dream/desire tom have the entire population of the USA dependent upon government largesse will have reached fruition. While all of the politicians are raking in the bribes, consultation fees, etc. you and your family will slowly starve to death or die from exposure.
Vote for a socialist, get socialism. People don’t really understand that such types of governments are bad though. It’s all the rage in college campuses. *sigh* I hope Obama enjoys his taxpayer trip to Disneyland
Socialism has many forms, all of them are beneficial to the poor. All of them are hated by the bloosuckers.
Are you absolutely loony?
That settles it…Gold IS money.
This is the resason the US got rid of Gadaffi becasue he wanted to be paid in gold and said no to the dollar. Therefore, unless Paul gets in, we are headed for war with Iran and it will be WWIII and the beginning of the end for the US. Good job sitting on your fat asses watching a bunch of ex-cons throw around a pig-skin ball while not giving a damn whom you elected into office.
Time will tell whom the ignorants are, and I assure you it is not me.
7.2 million oz of gold is about 200 tons
Indian fed reserve will be out of gold quick. They have only 500 tons.
Will never happen. Stupid idea.
Too funny…….
Its about oil, any conflict in the middle east is ALWAYS about oil.
Iraq could not be controlled, so it was “occupied” until the US had infrastructor around those wells, as well as corporate ties.
Iran cannot just be “invaded”. They share a border with the Soviet Union. Any attempt at “occupation” will involve a showdown with Russia. The US is NOT perpared for that.
So since you cannot “occupy and take” the next step would be to restrict there ability to export. This is being done….
In order to continue to have an economy, Iran MUST trade heavily with the countries they currently border. Turkey, Russia, India, Afghanistan all are on the list. The US is on friendly terms with all but Russia. What Iran will probably try next is to drop there prices SO low that it would be worth the risk for these other countries to purchase oil while avoiding there sanctions. The real question is, How much infrastructor does the US have in these bordering countries? If US companies, say in INDIA, want oil, and India is freely trading with Iran, does that mean that the US could be “Laundering” Oil through these corporations?
O and threatening India is Just as pointless since China is right there and would NOT tolerate an occupation of India that was not co-ordantated by themselves.
Well, yeah…Except the banksters aren’t laundering oil, they’re laundering the currency. They’ve been doing it since the early 1970′s. Just look at the commodity price index versus dollars and this will come as no surprise.
The west has been protecting the generational sovereignty of monarchies with horrific human rights records because it is they sell oil on the cheap and only for petrodollars, which have not been based on a fix commodity value since 1971.
Since they only sell for dollars, all the world’s nations need to hold on to reserve holding of proprietarily issued Federal Reserve Dollars in large volume. Since large volumes of Dollars are held out of circulation, new dollars can be added to the supply of dollars which spend as if they were more scarce than they really are. Inflation does of course occur but not until well after the wealth represented by the new dollars is laundered.
On the flip-side, the banksters make a mint from loaning our government money to pay for the military machine that keeps everybody either happy or in compliance. The monarchies might make more by not allowing for the laundering but then they wouldn’t get the protection for their monarchies like we saw when Iraq invaded Kuwait. Countries like Egypt got bribed to play along and countries like Iraq and Libya got their regimes changed when they sold oil for anything but dollars.
Iran is now a threat to the banking dynamic because it is allowing countries the freedom to not hold on to large dollar reserves which threatens the dynamic for all countries involved in the scheme which is why in the case of Libya our friends from Qatar got so involved in getting rid of Gaddafi.
Who knew, Indians had that much gold after all?
The Conquistadors were looking for it all over the place. But they managed to hide it till this day.
Of all the morons who are blabbering on this site REX do take the cake. Your stupidity must be an asset
Maybe those casinos in reservations are doing better than we knew for the Indians. Where else did they get all that gold to now buy oil with it..
OK India, You do not want to be on the side of the USA? Fine, We Americans will take American Dollars back and the 200,000 jobs you now hold in Information Technology, customer service, IRS Social security data management,ect…. and backrupt your country overnight! Shoot yourself in the food, I dare you!
So Iran’s gonna con India and China into giving them all their gold in exchange for a consumable resource. Smooth. What happens when Iran then has all their gold?
1. Return to treasury backed and printed currency.
2. Renounce debts claimed by the ‘Robber Barons’(The FED)
3. If India wants to align with Iran, fine, but no VISAs
Nobody has ever occupied Russia, since my ancestor Great Khan of the Stepe, and even he could not occupy the whole Russia, so he was satisfied with settling there for a few centuries to improve the breed.
Kadaffi wanted to switch to a gold standard too.Enough said hello war.
This is very true.
WOW imagine that!!! A barter system based on trading goods for goods . . . crap, why didn’t we think of that?
Lets’s trade food for oil, noble concept!
It’s now a global expression,
Economies in recession,
Bush isn’t to blame,
(The attempt is lame),
It’s called “Obama Depression”.
Everbody go here and tell Ron Paul to run 3rd party http://www.ronpaul2012.com/contact-us/ we can win why keep on associating with the neocons We can win with 45% of the vote Obama 35% and Romney 20% Run Ron Run