The fate of the world economy lies in the hands of the US dollar … and the people who print it.
Iran Dumps Dollar in Favour of Yen, Euro: Full Story Here.
At a summit last year in Saudi Arabia, Iranian President Mahmoud Ahmadinejad called the depreciating dollar a “worthless piece of paper.”
Eliminating demand for the US dollar will most likely send the dollar further downwards in value compared to other global currencies. This is obvious. What still seems to very obscure to most journalists and business analysts around the world is the continued impact that this will have on global commodity prices. Since most prices are quoted in US funds, expect more drastic increases and inflammatory stories about starvation, shortages and food riots.
In short, we will have international inflation, or ‘interflation’, as a result of poor economic & foreign policies in the US.
Of course, news of Iran’s changing economic strategy does not sit well with the folks in the White House and hawks like McCain and here in Canada with war mongers like Harper.
Is US Preparing for Attack on Iran?
No attacks are imminent and the last thing the Pentagon wants is another war, but Chairman of the Joint Chiefs of Staff Mike Mullen has warned Iran not to assume the U.S. military can’t strike.
“I have reserve capability, in particular our Navy and our Air Force so it would be a mistake to think that we are out of combat capability,” Mullen said.
Targets would include everything from the plants where weapons are made to the headquarters of the organization known as the Quds Force which directs operations in Iraq. Later this week Iraqi Prime Minister Nouri al-Maliki is expected to confront the Iranians with evidence of their meddling and demand a halt.
If that doesn’t produce results, the State Department has begun drafting an ultimatum that would tell the Iranians to knock it off – or else.
Sounds like it.