Iran may have signed a virtual “death warrant” by openly declaring a governmental decision to move away from the dollar in the country’s foreign-exchange transactions, says WND columnist Jerome Corsi.
“The Bush administration will see Iran’s decision as economic warfare, a move calculated to weaken the dollar in retaliation for the U.S. seeking U.N. Security Council sanctions against Iran’s continued uranium enrichment,” Corsi told WND.
Speaking to reporters at an e-commerce conference in Tehran Tuesday, Iran’s Minister of Economy and Finance Davood Danesh Jaafari presented the policy as a defensive move aimed at blocking Washington’s ability to monitor and interfere with Iran’s conduct of international business.
“Some U.S. banks have been disrupting our dollar transactions for a long time and Iran, in return, has been decreasing its dependence on the dollar,” Jaafari explained.
The U.S. Treasury in September barred Iran’s state-run Bank Saderat from having any links with U.S.-owned banks because of Iran’s support of terrorism.
As a result of the increasing pressure from the Bush administration, Iranian banking authorities have complained European banks are increasingly reluctant to transact Iranian import and export sales in dollars and to extend open lines of credit for Iranians in dollars, fearing U.S. penalties. Iran also is concerned the U.S. government might soon be forced to devaluate the dollar.
Corsi previously has argued Saddam Hussein “signed his death warrant” by getting the U.N. to agree Iraq could hold foreign exchange currency in Euros resulting from “oil for food” transactions.
Iran’s announcement this week will be seen by Washington as a follow-up to its intention to create an oil bourse pricing oil in Euros, Corsi believes.
“With our continuing budget and trade deficits, the Bush administration has to react strongly to any suggestion that world international markets might move away from dollar transactions or dollar holdings of foreign exchange currency,” he said.
The risk also includes China, Corsi noted.
“With China now holding $1 trillion in their foreign exchange currency, the recent decision that China intends to diversify their holdings more into Euros threatens the ability of the U.S. Treasury to float our budget deficits by selling U.S. government debt into the foreign exchange currency holdings market,” Corsi explained.
Corsi is concerned the Bush administration has been “de-industrializing the United States” by pursuing a free trade policy that allows China to replace U.S. manufacturers with what Corsi describes as “under-market slave labor or near slave labor.”
“Now with Iran on the verge of announcing the capacity to produce highly enriched and possibly weapons-grade uranium,” Corsi comments, “we are increasingly vulnerable to Iran spearheading an anti-American attack on the dollar.”
Corsi points out China recently signed a multi-billion dollar deal “guaranteed to make Iran one of the major suppliers of oil and natural gas to China for decades to come.”
“If China joins Iran in pressuring the dollar, we face dollar devaluation much faster that the Bush administration has allowed the U.S. public to know,” Corsi said.
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