Page 1 of 4 123 ... LastLast
Results 1 to 10 of 33

Thread: Russia rejects US warnings over oil deal with Iran

  1. #1
    Banned
    Join Date
    Mar 2014
    Last Seen
    08-18-15 @ 09:36 AM
    Gender
    Lean
    Undisclosed
    Posts
    4,974

    Russia rejects US warnings over oil deal with Iran

    Under this deal Russia would import 500,000 barrels a day of Iranian oil. My understanding is that they won't be trading in US dollars. If so this will chip away at the reserve currency power of the dollar. The question is whether this will actually materialize, or is it just a mechanism that is being used for leverage?

    Russia rejects US warnings over oil deal with Iran

    Russia rejects US warnings over oil deal with Iran

    MOSCOW (AP) — A senior Russian diplomat on Wednesday angrily rejected U.S. warnings against striking an oil-for-goods contract with Iran, saying that Moscow wouldn't be intimidated by threats.

    Deputy Foreign Minister Sergey Ryabkov said in remarks carried by the state RIA Novosti news agency that an increase in Russian-Iranian trade is a "natural process that doesn't involve any elements of political or economic challenge to anyone."

    Russian business daily Kommersant has reported that Moscow plans to buy 500,000 barrels of Iranian oil a day, a deal that would shatter an export limit defined by an interim nuclear agreement world powers and Iran reached last year.

    Iran has agreed to temporarily limit its atomic work, which the West fears could be a cover for developing nuclear weapons, in return for some sanctions relief. Six world powers, including Russia, and Iran are working on a fuller deal that would place long-term restrictions on Iran's nuclear program in exchange for an end to all economic sanctions.

    The six-month interim agreement, which went into effect in January and expires in July, allows Iran to continue exporting a total of 1 million barrels a day of oil to six countries: China, India, Japan, South Korea, Taiwan and Turkey. The promise didn't apply to Russia, which wasn't an existing customer of Iran's petroleum industry.

    If Russia reaches the oil-for-goods contract with Iran, it would challenge Western efforts to secure a comprehensive agreement. U.S. Secretary of State John Kerry said Tuesday that Washington could impose sanctions if Russia and Iran move forward with the oil contract.

    Ryabkov said he was unaware of any specific agreements, adding that a "normal exchange of opinions with Iranian colleagues has been going on to determine which sectors of economy are best suited for further development of ties."

    He insisted that Russia wants to develop its ties with Iran and rejected the U.S. threat to impose sanctions.

    "We don't think that any unilateral U.S. sanctions, no matter whom they target, are legitimate, and we reject such a stance," he said.

  2. #2
    Tavern Bartender
    Constitutionalist
    American's Avatar
    Join Date
    Mar 2006
    Location
    Virginia
    Last Seen
    Today @ 04:19 PM
    Gender
    Lean
    Conservative
    Posts
    76,277

    Re: Russia rejects US warnings over oil deal with Iran

    Darn, and I thought Putin would say, "Thank you, Sir. May I have another."
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
    "Fly-over" country voted, and The Donald is now POTUS.

  3. #3
    Banned
    Join Date
    Dec 2012
    Last Seen
    12-19-15 @ 10:50 PM
    Gender
    Lean
    Socialist
    Posts
    1,234

    Re: Russia rejects US warnings over oil deal with Iran

    The petrodollar system has anchored the reserve status of the USD since Nixon Shock. The luxuries of having the reserve status afford the US the high standard of living it enjoys on credit. The US economy is smokes and mirrors as it is. The US economy needs good news and not news that Russia and China are coming to unseat the Reserve and that they are capable and crazy enough to do it. Peter Keonig, former World Banks economist has coined the economic warfare strategy of the 'Sacrifice Throw'. from judo I gather. The idea is that to break the USD the BRICS must be willing to take some damage themselves. But the idea is to knock the USA the [SNIP] out by going to the floor with them.

    Reality Check comment: In judo, this is called a sacrifice-throw. Such moves require the thrower to move into a potentially disadvantageous position in order for it to be executed, such as falling to the ground. The momentum of the falling body adds power to the throw and requires comparatively little strength, compared to the effect. Sacrificing a part of currency reserves in order to bring down the American empire is definitely a good strategic move.
    Read more: What will happen to global economy if BRICS announce launch of new currency - Bricso? - News - Reality Check - The Voice of Russia: News, Breaking news, Politics, Economics, Business, Russia, International current events, Expert opinion, podcasts, Vi
    The idea checks out as far as I can tell. I thought of it myself a few years ago. I have been saying that the next GFC will destroy the USA but will help the BRICS in the long term. The last GFC that the USA caused gave China a bump on the world stage. It gave Australia a bump on the world stage as well. The Asia Pacific region is not as linked to the US economic doom and having China driving the regions economy meant that the GFC was actually great for us. I have been saying that China should collapse the world economy in a controlled way and this is the best way to unseat the USD as reserve and to break US hegemony. To read the Peter Koenig, former World Bank economist is pushing for the BRICS to take the US out with a Sacrifice Throw strategy is kind of cool. It is the same idea that I have pretty much.

    The BRICS have created somewhat of a firewall with the creation of the BRICS Bank. The BRICS nations are much better prepared for the next GFC than the last. The justice seeking nations of the NAM alliance will look to the East for leadership. The informal empire of the US side will crumble as 'western' nations jump ship to the East.

    I am so worried about the Federal Reserve losing control of interest rates. It may be approaching that time when TSHTF. Soon it will be time to grab your 'bug out bag' and head for the hills. Or 'bug out location'. Do not forget that it is always a good idea to have a second 'bug out location' just in case your primary 'bug out location' is overrun by roaming bands of zombie-like cannibals coming for your stores of dried corn. The collapse of the USD is near folks. Soon there will be hordes of looters looting the [SNIP] out of anything that they can loot. And then comes the Red Dawn. First North Koreans. Then Russians. Then Chinese. reds under your beds. And in your streets. Commies! Commies everywhere. No pursuit of happiness then. No liberty and freedom. It will be gulags and six hours of forces manual labour.

    To be honest I think that state of the USD is quite worrisome at this pint. Maybe Obama should like do something. What is he doing anyway? Golf? Holiday? Fund raising? Golf? B-grade comedy? Golf? What? Where is he? Hiding under his bed? Is he afraid of Putin? Is Putin giving Obama night terrors? Why is Obama so weak and afraid of everything? What is wrong with Obama? Why so scared and weak? Why is he trying to make Jimmy Carter seem so great? Where is he? Golf? Why wont he do something? TS is about to HTF. This whole petroruble business is a game changer tell Obama. A real game changer. Maybe Obama needs to give Putin a Red Line? Would that work? Another Red Line? No. Umm. Sanctions? Oh thats right. Hmmm .......Hmmmm. Ummmm. Grab your 'bug out bags'?

    Australia has dumped the USD for trade with China. And trade with China makes up the majority of our trade. Thanks for not putting sanctions on us USA. You guys rule. And I think you are exceptional. Really. But how can USA threaten sanctions on Russia and Iran for doing what Australia is doing pretty much? What difference does it make how you bypass the use of USD for international trade? Barter of direct currency swap do the same thing and that is dump the USD. So I guess USA can make Russia angry if you guys need to just so long as you guys do not attack the Aussie economy and sanction us for dumping the USD for international trade where possible.

    You could sanction Australia but we would probably ignore the US Federal Government. Our Aussie farmers traded with Saddam Hussein even though our Leader State USA ordered them not to. Wheat for oil baby.

    The Yuan talks. The USD walks. ((:

    Golf?

    Look, Australia is really into dumping the USD. We Australians love to dump the USD. We have been into dumping the USD as reserve some time now in Australia. We did it before it was cool. And no sanctions from Obama. Obama isnt afraid of Aussies too now is he? Why is Obama so afraid? And weak? Can we blame the crumbling status of the USD on Obama? maybe not but he sure has not helped.

    Australia to cut out US Dollar in trade With China. 2013-3-30 13:25

    Australia is seeking to bypass trading in U.S. dollars with China in a deal that will be the focus of Prime Minister Julia Gillard’s trip to Beijing next week.



    Trade with China, Australia’s primary trading partner, totaled $120 billion in the last fiscal year. China buys nearly one-third of Australian exports.

    "The value of such a deal would be substantial for exporters to China, especially those that import a lot from China, like mining companies, as it would remove business constraints including exchange-rate risks and transaction costs," said Australia’s former ambassador to China, Geoff Raby, according to the Australian.
    Sorry, Mates, Strictly Business: Australia Wants To Cut Out US Dollar In Trade With China

    The selfish and irresponsible 'unlimited QE' that America has unleashed on the world has really hurt Australian exporters by driving up the AUD. I am glad Australia is seeking to combat America and trying to minimize the damage that Americas Currency War is having on the Australian Economy.

    America should be ashamed of themselves for attacking the economies of their so-called 'friends'. Even Japan lashed out at America recently in relation to their selfish money printing.

    As we move into the Asian Century it is becoming clear that America is not needed. America can no longer scare us into using USD in International Trade. The power of China has liberated us. From Bretton Woods to Nixon Shock to Unlimited QE America has held us hostage to their imperial world system.


    After the Nixon Shock, Nixons Treasury Secretary John Connally told the world “the dollar may be our currency, but it is your problem”. This has always been Americas attitude to the rest of the world. Well its a new day thanks to China and the USD is no longer our problem. The USD is Americas problem now.
    http://bbs.chinadaily.com.cn/thread-844444-1-1.html

    Golf?
    Last edited by spangledbanner; 04-10-14 at 12:02 PM.

  4. #4
    Outer space potato man

    Join Date
    Feb 2010
    Last Seen
    Today @ 08:22 PM
    Gender
    Lean
    Undisclosed
    Posts
    51,764

    Re: Russia rejects US warnings over oil deal with Iran

    Oh I'm sure the right-wingers will start proclaiming this is all because Obama "looks weak," as if something cosmetic is really what makes the world turn. Then they'll try to avoid saying they support military intervention because they know that's stupid.
    He touched her over her bra and underpants, she says, and guided her hand to touch him over his underwear
    Quote Originally Posted by Lutherf View Post
    We’ll say what? Something like “nothing happened” ... Yeah, we might say something like that.

  5. #5
    Banned
    Join Date
    Dec 2012
    Last Seen
    12-19-15 @ 10:50 PM
    Gender
    Lean
    Socialist
    Posts
    1,234

    Re: Russia rejects US warnings over oil deal with Iran

    See, I said this almost two years ago. It is the same thing Peter Koenig is advocating. A sacrifice throw.

    You are confused in relation to China. China and the other BRICS nations are working toward destroying the 'reserve status' of the USD. China and the other BRICS nations are doing everything they can to bring the western GFC forward. They are also taking measures to protect themselves, for example, the creation of the BRICS Banks.

    China is also a part of NAM. If you look at a map highlighting the NAM member nations you will see that all that is left is pretty much bankrupt Europe and and a few other loyal nations like Australia. The whole world is in the corner of China. When China does reach its goal of unseating the USD as reserve, the US consumer will have far less buying power. The US economy will shrink and possibly collapse.

    We may see a 'basket reserve' at first but China will end up with reserve in the end. It is not a matter of if China will unseat the USD, but a matter of when. The US cant run its economy and they refuse to address national debt. Their Banks have $298 trillion in outstanding derivatives. US congress cant agree on any real solutions, partly because there are no solutions.

    The reason economists are having trouble is because they cannot comprehend the fact that the East is ready to a leading role. Economists refuse to believe that China can survive without relying on western consumers spending inflated dollars. The economists refuse to see that the 'developing' nations are ready to fall in line behind China.

    It is all about faith and confidence. China and the other BRICS nations will emerge from the next GFC as the obvious power. The USD will be unseated. The western consumer will be no more.
    Buckle up, Australia: recession is coming

    The sacrifice throw is my idea. I own it. Like Peter Keonig can give it a name if he likes. But I will expect royalties at some stage.



    Better by the Yuan.


    Will The Next GFC Be A Positive For China? 2012-9-24 21:09

    China got a bump in its world standing due to the GFC. Wouldnt the same thing happen again?

    It seems to me that China must continue to shift away from the so called affluent markets. Their direction should be to nurture the emerging markets in Africa and elsewhere in the world. The NAM members make up most of the world. A total collapse in OEC Dnations would help the justice seeking members of NAM as well as helping China.

    The so called 'affluent markets' are only affluent because their money is over valued. China and the mighty BRICS alliance have created somewhat of a firewall with the creation of the BRICS Bank and by direct trade. The next GFC will not hurt these nations as much as they were hurt the last time America caused the world economy to collapse.

    A GFC would be a good thing for China in the long term. I think this is why China and the BRICS are actively seeking to unseat the USD as the Reserve Currency. If you use logic you will see that the Chinese Government would not be actively seeking to unseat the USD if they thought their future relied on western markets and western consumers.

    It is clear to me that China will come out of the next GFC as sole superpower. Will America try to cause a war before this happens to reshuffle the deck so to speak? They seem to be trying their hardest.
    http://bbs.chinadaily.com.cn/thread-793598-1-1.html

    edit- I own the Sacrifice Throw economic warfare strategy. I thought of it before Peter Keonig. Peter Keonig the stealing my ideas. The sneaky red Commie bastard! Isnt there some kind of intellectual property thing that I can use to get some rubles out of all of this? If Russia uses my idea to take down the USA and I get nothing out of it but satisfaction, then what is in it for me? Happy feelings? Show me the money commies!
    Last edited by spangledbanner; 04-10-14 at 12:27 PM.

  6. #6
    Sage
    Sherman123's Avatar
    Join Date
    Jul 2012
    Location
    Northeast US
    Last Seen
    11-23-17 @ 11:12 AM
    Gender
    Lean
    Undisclosed
    Posts
    7,774

    Re: Russia rejects US warnings over oil deal with Iran

    Quote Originally Posted by MildSteel View Post
    Under this deal Russia would import 500,000 barrels a day of Iranian oil. My understanding is that they won't be trading in US dollars. If so this will chip away at the reserve currency power of the dollar. The question is whether this will actually materialize, or is it just a mechanism that is being used for leverage?

    Russia rejects US warnings over oil deal with Iran
    It wouldn't chip away at the USD as the global reserve currency anymore than Iran's 'Oil Bourse' did. If Russia decided to go through with this all it would do is wreck the tenuous framework that the West and Iran had established. Tighter sanctions on Iran, re-freezing assets, and re-imposing commercial bans would likely follow if the West determined that their previous regimen was no longer effective. It would also further cement the image of Russia as a rogue/rival state in the eyes of the worlds democratic powers.

    I would actually be fairly pleased if they went ahead with this. It would accomplish quite a few objectives or at least push them further along without doing too much damage.

    Edit: For the above poster... Australia didn't 'dump' the US Dollar. It was a currency conversion deal to allow the RMB to be traded against the AUD. This is similar to the decision to allow the RMB to be traded against the Yen. This has everything to do with China having extremely strict currency controls and tightly guarding access to its capital markets. The United States has been encouraging liberalization of controls on the Yuan/RMB for years.
    Last edited by Sherman123; 04-10-14 at 05:34 PM.

  7. #7
    Banned
    Join Date
    Mar 2014
    Last Seen
    08-18-15 @ 09:36 AM
    Gender
    Lean
    Undisclosed
    Posts
    4,974

    Re: Russia rejects US warnings over oil deal with Iran

    Quote Originally Posted by Sherman123 View Post
    It wouldn't chip away at the USD as the global reserve currency anymore than Iran's 'Oil Bourse' did.
    No, it would hit it a little. That's 500,000 more on the market that's not traded in dollars, about 2.5 percent of US daily consumption. It's not going to bring the dollar down by any stretch, but a chip nonetheless.

    Quote Originally Posted by Sherman123 View Post
    If Russia decided to go through with this all it would do is wreck the tenuous framework that the West and Iran had established. Tighter sanctions on Iran, re-freezing assets, and re-imposing commercial bans would likely follow if the West determined that their previous regimen was no longer effective. It would also further cement the image of Russia as a rogue/rival state in the eyes of the worlds democratic powers.

    I would actually be fairly pleased if they went ahead with this. It would accomplish quite a few objectives or at least push them further along without doing too much damage.
    Well I suppose you would be pleased. But it has a downside for your position as well.

  8. #8
    Sage
    Sherman123's Avatar
    Join Date
    Jul 2012
    Location
    Northeast US
    Last Seen
    11-23-17 @ 11:12 AM
    Gender
    Lean
    Undisclosed
    Posts
    7,774

    Re: Russia rejects US warnings over oil deal with Iran

    Quote Originally Posted by MildSteel View Post
    No, it would hit it a little. That's 500,000 more on the market that's not traded in dollars, about 2.5 percent of US daily consumption. It's not going to bring the dollar down by any stretch, but a chip nonetheless.



    Well I suppose you would be pleased. But it has a downside for your position as well.
    It really wouldn't hit it. The IRB also floated 500,000bbl it had no impact, rather the relative strength and popularity of the USD has increased dramatically because numerous other factors dictate an interest in the dollar. This is a propaganda stunt.

  9. #9
    Banned
    Join Date
    Mar 2014
    Last Seen
    08-18-15 @ 09:36 AM
    Gender
    Lean
    Undisclosed
    Posts
    4,974

    Re: Russia rejects US warnings over oil deal with Iran

    Quote Originally Posted by Sherman123 View Post
    It really wouldn't hit it. The IRB also floated 500,000bbl it had no impact, rather the relative strength and popularity of the USD has increased dramatically because numerous other factors dictate an interest in the dollar. This is a propaganda stunt.
    I don't know about that popularity stuff. This is of interest

    Will China's Sale of Treasuries Force the Fed to Buy? - Barron's

    China's Sale of U.S. Debt -- Beginning of the End?

    The dollar's share of China's huge cache of currency reserves has been slashed to a record low, the Wall Street Journal reports, to which it adds the world hasn't ended as a result.

    But more recent data showing outright sales of U.S. securities by China suggests a less cavalier attitude would be in order. It isn't the end of the world, just a portent of what can happen when the biggest buyer of America's biggest export -- its IOUs denominated in dollars -- stops buying.

    That would leave the Federal Reserve as lender of last resort to the U.S. government to fill the gap left by its biggest creditor. Think this Zimbabwe style of central-bank monetization of an unsustainable government debt can't happen in one of the world's major industrialized democracies? Well, it may be starting in Japan.

    According to the Journal's crunching of the numbers, dollar assets comprised 54% of Beijing's $3 trillion-plus reserves as of last June 30, down from 74% as recently as the end of 2006. That's based on data on China's foreign-exchange reserves and the U.S. Treasury's latest survey international holdings of U.S. securities. Those numbers show an outright increase in China's holdings of U.S. securities, by $115 billion in the latest 12 months, to $1.726 trillion.

    Beijing has made no secret of its desire to diversify from greenback assets -- mainly U.S. Treasuries -- and for the establishment of another reserve currency to use as a store of wealth and for international transactions. The European sovereign debt crisis has reduced the allure of the euro for those purposes. While Beijing has voiced limited support for the various schemes to ease Europe's woes, it has added to its holdings of other, smaller currencies, such as the Australian dollar.

    But more recent Treasury data show China has been selling Treasuries outright. And while the markets have been complacent to the point of snarkiness, MacroMavens' Stephanie Pomboy thinks that's wrong. Unlike other Cassandras, she's been right in her warnings -- notably in the middle of the last decade that the U.S. financial system was dangerously exposed to a bubble in U.S. real estate. Hers was a lonely voice then because everybody knew, of course, house prices always rose.

    As for the present conundrum, there's an $800 billion gap between the $1.1 trillion the Treasury is borrowing to cover the budget gap and the roughly $300 billion overseas investors are buying, Pomboy calculates. Banks, corporations and households have been doing little to fill that gap, preferring higher-yielding securities, so "it would appear the heavy lifting has been done by long-only bond managers extending duration and specs rushing to cover their shorts," she writes.

    But Pomboy has little doubt that the Fed will step in to fill the gap left by others. In other words, debt monetization, a fancy term for printing money to cover the government's debts, which in polite circles these days is called "quantitative easing."

    "Having pushed interest rates to zero, launched QE1 and QE2, there's no reason to believe that the Fed is going to allow free-market forces to destroy the fragile recovery it has worked so hard to coax forth now. And make no mistake, at $800 billion, allowing the markets to resolve the shortfall in demand would send rates to levels that would absolutely quash this recovery…if not send the economy in a real depression."

    But her real concern is a bigger one. "The Fed's 'need' to take on an even more active role as foreigners further slow the purchases of our paper is to put the pedal to the metal on the currency debasement race now being run in the developed world -- a race which is speeding us all toward the end of the present currency regime." That is, the dollar-centric, floating exchange-rate system of the past four decades since the end of Bretton Woods system, when the dollar's convertibility into gold was terminated.

    The U.S. has benefitted because other countries needed dollars as reserves and for transactions. No other market has near the depth and liquidity of the U.S. financial system, the linchpin of which is the Treasury market. Not even the loss of America's triple-A rating by Standard & Poor's reduced the attraction of U.S. government obligations.

    But other nations are beginning to push back. Brazilian President Dilma Rousseff Thursday criticized not just the U.S. but also Europe and Japan for creating a "tsunami" of cheap money. That has had the effect of forcing up currencies of emerging economies, which threatens to "cannibalize" those countries, she added. Not that this criticism is something new. In 2010, Brazil's finance minister blasted the U.S. for provoking a "currency war" with the Fed's second round of quantitative easing, QE2.

    ...................

  10. #10
    Banned
    Join Date
    Mar 2014
    Last Seen
    08-18-15 @ 09:36 AM
    Gender
    Lean
    Undisclosed
    Posts
    4,974

    Re: Russia rejects US warnings over oil deal with Iran

    Quote Originally Posted by spangledbanner View Post
    See, I said this almost two years ago. It is the same thing Peter Koenig is advocating. A sacrifice throw.
    While I agree that the BRICS nations are trying to erode dependence on the role of the USD as a reserve currency, I really don't think China wants to see another financial crisis. Remember that China is dependent on the US as a market for it's goods.

Page 1 of 4 123 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •