Wednesday, November 09, 2005

The Real Reason the US will Attack Iran: EUROS

Money. Simple as that. Iran has converted more than half of it forex reserves from the dollar to the euro. Also, they are planning on a March 2006 move to open a bourse (exchange) trading in euros on Iranian soil. This is a major threat to the oilmen of the US. Most know that the dollar has been on a steady decline against the euro, and if one of the richest oil producing countries in the world moves it's basis to the euro, the dollar will drop precipitously once the exchange begins trading. Bush won't let this happen. Expect US troops to be ordered into Iran prior to March 2006.

What does this mean for the common American? Well, the cost of goods and services will rise. Gas prices will shoot through the roof. Basically, the purchasing power of your money will be eroded - you dollar will be able to purchase less. It might be time to hedge your bets and move your money into euros......

UPDATE: The day after I posted this the Board of Governors of the Federal Reserve System announced that they will discontinue publishing the M3 monetary aggregate as of March 23, 2006. Do you suppose it is a coincidence that Iran plans to open their bourse right around the same time? What is the M3 monetary aggregate? Click here for definitions. Why is this important? I'll explain very soon.


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