RE: [A-List] Rep Ron Paul (R-TX) Speech: The End of Dollar Hegemony

["mdriscoll@xxxxxxxxxxxxx" <mdriscoll@xxxxxxxxxxxxx>]

This is from a financial analyst friend in Florida to whom I sent the Paul
Craig Roberts article a few days ago. His response seems simple enough,
just reinforcing what Roberts had said, and relevant in response to what
Ron Paul says here. Oil's price may be pegged to the dollar but that bears
little or no relationship to what currency is used in trading it.Yes? Does
creation of an Iranian bourse make any difference? What am I missing here?

"The article is more than correct. Contrary opinion suggests people don't
have a remote understanding of international currency relationships.  The
idea that oil or anything is relevant to a specific currency is absurd.
Oil, gold or carrots are traded in value.  The dollar, pound, euro, swiss
franc,etc. are interchangeable at a fixed world wide ratio.  The ignorance
illustrated in assuming our Iran policy could be related to how their oil
is currency denominated goes beyond my imagination.  Strike such ignorance
from your mailing list.  ( I could go on for pages, but the obvious
example...oil sold at $60. a barrel is the same as oil sold at 50 euros, 36
pounds, etc.  NO ONE cares a damn.  The money is fungible and in one second
on the internet can be converted into any currency at known ratios.)"


Subject: RE: [A-List] Rep Ron Paul (R-TX) Speech: The End of Dollar
Hegemony

http://www.house.gov/paul/congrec/congrec2006/cr021506.htm

HON. RON PAUL OF TEXAS Before the U.S. House of Representatives

February 15, 2006

The End of Dollar Hegemony

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In November 2000 Saddam Hussein demanded Euros for his oil.  His arrogance
was a threat to the dollar; his lack of any military might was never a
threat.  At the first cabinet meeting with the new administration in 2001,
as reported by Treasury Secretary Paul O?Neill, the major topic was how we
would get rid of Saddam Hussein-- though there was no evidence whatsoever
he posed a threat to us.  This deep concern for Saddam Hussein surprised
and shocked O?Neill.

It now is common knowledge that the immediate reaction of the
administration after 9/11 revolved around how they could connect Saddam
Hussein to the attacks, to justify an invasion and overthrow of his
government. Even with no evidence of any connection to 9/11, or evidence of
weapons of mass destruction, public and congressional support was generated
through distortions and flat out misrepresentation of the facts to justify
overthrowing Saddam Hussein.

There was no public talk of removing Saddam Hussein because of his attack
on the integrity of the dollar as a reserve currency by selling oil in
Euros.  Many believe this was the real reason for our obsession with Iraq.
I doubt it was the only reason, but it may well have played a significant
role in our motivation to wage war.  Within a very short period after the
military victory, all Iraqi oil sales were carried out in dollars.  The
Euro was abandoned.

In 2001, Venezuela?s ambassador to Russia spoke of Venezuela switching to
the Euro for all their oil sales.  Within a year there was a coup attempt
against Chavez, reportedly with assistance from our CIA.

After these attempts to nudge the Euro toward replacing the dollar as the
world?s reserve currency were met with resistance, the sharp fall of the
dollar against the Euro was reversed.  These events may well have played a
significant role in maintaining dollar dominance.

It?s become clear the U.S. administration was sympathetic to those who
plotted the overthrow of Chavez, and was embarrassed by its failure.  The
fact that Chavez was democratically elected had little influence on which
side we supported.

Now, a new attempt is being made against the petrodollar system.  Iran,
another member of the ?axis of evil,? has announced her plans to initiate
an oil bourse in March of this year.  Guess what, the oil sales will be
priced Euros, not dollars.

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