Iran is the First to Dump the US Dollar – Starting March 21, 2017

JcollinsEconomics, FREEPOM36 Comments

By JC Collins

It’s being reported on RT that Iran will be dumping the USD as of March 21, 2017 in response to Trump’s travel ban. This falls in line with our thesis that the Trump doctrine will be used as the tool to implement the transformation of international monetary system and the subsequent geopolitical changes which such a multilateral framework would entail.  It should be considered that other nations will take similar actions for varying reasons. This should include today’s statements by the Trump administration that Germany has been manipulating the value of the euro and accusing both China and Japan of “planning money markets” by devaluation. A cascading waterfall of such occurrences will create the international demand to use something other than the USD as the global reserve asset.  The SDR stands in the wings waiting.  – JC

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36 Comments on “Iran is the First to Dump the US Dollar – Starting March 21, 2017”

  1. Interesting new JC Thank you. Islamic Republic received $150 Billion of the money that was owed to the nation during the Shah’s era for the purchase of weaponry such as F16’s which Iran never received (All flown out to Israel during under Caster!) plus a whole host of gunboats and a couple of AWACS radar planes which the Islamist regime did not receive and later sold to Saudi Arabia. Also, another $400 Million as cash was sent to Tehran via Switzerland under the cover payment to release the two (dual national American Iranians) who worked for Washington Post not so long ago. The cash consignment was sent as cash since Iran is officially under the UN Security council sanction, so Obama broke the UN rules, but since his regime was a favorite of the globalists, no body flinched!

    However, the question is if Iran decides to dump it’s USD cash reserve, it will inevitably result in a lowering of the USD worldwide, and as per your wise and astute observations reflected in your excellent posts, it will actually help the SDR plan as you explained it in devaluing USD though.

    I am not certain of the USD cash reserve amount of Iran but I think it is significant (IMF site may be a good one to check I guess but not sure!).

    So it may be a good time to sell the USD’s and as it’s high right now and buy other currencies such as British Pounds now at around 1.26 USD per Dollar today, and to buy GBP pounds later when it devalues.

    Who knows maybe I can even sell my ancient car and get a newer one, all thanks to you JC and President Trump… LOL

      1. LOL thanks Dane, and what a surprise! Iran’s central bank does not give out much info on such matters as currency reserves etc. Despite all the things we hear from the media regarding how independent Iran’s Islamist regime is, the fact is something different. Islamic Republic of Iran is a globalist run regime that postures when given signs and symbols to behave in ways to show it is independent.

        An recent example was the couple of occasions when the small boats of the IRGC in the Persian Gulf got so close to the US navy ship on patrol and shots were fired by the US Navy ship to warn them away. All orchestrated for various reasons, namely deals under the table with the regime, currency and Oil price manipulations all agreed in advance.

        The captured US sailors and the British patrol boats “captured” by IRGC is another example of the manipulations that goes on a daily basis. Islamist regime and the West have had covert and overt relationships since 1979. even the so called “Hostage crisis” in 1980 by so called islamist students was nothing but a charade. Iran also had been buying and selling to Israel and as the great English actor would Michael Caine would say with that great cockney accent, “Not many people know that”!!

    1. They have gone the way of the BRICS’S and have become ‘just another brick in the wall.’ Check JC’s post, ‘The Short-Lived BRICS Era Ended and Nobody Noticed.’
      PTM

  2. It looks like Iraq is going to be next….

    Citizen bloc calling on the government to receive the oil money in a currency other than the dollar 31/01/2017 14:34 BAGHDAD / tomorrow Press: Called MP Bloc citizens, Hamdiya Husseini, Tuesday, for a boycott of US goods and find alternatives to them, demanding the government to transfer Iraqi assets from the United States and receive oil revenues in a currency other than the dollar. Husseini said in a statement: “Tomorrow Press” received a copy of it, that “the Iraqi government, the transfer of assets from US banks, as well as find US goods imported alternatives by Iraq.” And it demanded the MP, the Iraqi government responded to US President Donald Trump’s policy towards Iraqis, to save the prestige and dignity while defending their country against terrorism, noting that “the government’s receipt of the money for the export of oil in other currencies, in response to Trump’s policy.”

        1. I’m wondering if Iraq is making this play now because there is heavy Iranian/Shia influence and their economies will run parallel with trade both among each other and globally. This also may set up the ME for the GCC dinar.

  3. http://averybgoodman.com/myblog/2017/01/29/comex-physical-gold-deliveries-rise-729-year-over-year/

    “We will eventually see a lot of upside manipulation in gold prices (followed by repeated short price collapses) as manipulators turn their attention to profiting, in a different manner, from price volatility. The key point is that when gold prices finally move above the equilibrium point between supply and demand, they can be pushed upward, and then allowed to fall, without any need for physical gold. Until that change in orientation, however, we will see prices driven upward solely by the continuing excess of physical buyers over sellers.

    Note that physical precious metals buyers, unlike futures market speculators, are thrifty people who don’t like overpaying. They’ll stop buying when prices rise very fast. They will resist purchasing until they get used to new prices. The process requires time. That’s why gold price destabilization, rather than price suppression, is the primary goal of gold market manipulators. I expect the price of gold to rise slowly but steadily back to its prior supply/demand equilibrium point (somewhere between $1,500 and $1,600 or a bit higher).

    If major upside manipulation events begin or a major outside event occurs, like a major default on corporate and government bonds, widespread insolvency of pension plans and/or the demise of the Euro currency, the sky will be the limit. Evidence of fiat currency instability will be so high, once the Eurozone collapses, that a much higher floor will be put underneath precious metal pricing.”

    1. 1) Fiat currencies are not “unstable” anymore than laws are “unstable”. Both can positively or negatively affect behavior in a society depending upon the sovereignty that enforces them.

      2) Gold is not a commodity. It has no practical use. 99% of gold is purchased by hoarders, similar to collectors of baseball cards, comic books, or used sports jerseys.

      3) You cannot predict the demand for gold because it is not based on any intrinsic need. Goldbugs like you, in the internet age (which amazingly is now the majority of the time since Bretton Woods was abandoned) promote bubbles and crashes with links such as that you cite. It is similar to a penny stock scam.

      1. You need to change your handle, for if Keynes was alive today you’d be shocked to see what his portfolio comprised. JMK understood gold’s role. Why do central banks still hold it?

        You are right gold is not a commodity. It is something else. It is a counterweight to debt, the atithesis of debt. And what is threatening to fail around the world? What requires a central bank backstop to keep from imploding?

        It is not fiat currency that is unstable…it is debt..that in the long run…goes to zero. Gold. Get you some, pilgrim.

      2. I am not a gold bug but I think your thinking is off to the other side of the extreme. I think of gold as insurance, it has a place in a portfolio but it should not make up your entire portfolio like some believe.

        Baseball cards and Comic books do not take a massive amount of energy to extract them from the ground and do not have history as being used as money or being held as assets by banks and governments. I would say the comparison is a little far fetched.

  4. The plot thickens…

    ERBIL — Kuwaiti government introduced a US-like travel ban on passport holders of five Muslim-majority countries, according Gulf state.

    The Kuwaiti new blanket ban includes Syrians, Iraqis, Iranians, Pakistanis and Afghans.

    The ban is in place and citizens from those countries are not able to obtain visit, tourism or trade Kuwaiti visas.

    The Kuwaiti state ascribes the travel restrictions to the instability and the existence of terrorist groups in those countries and that the ban would be lifted once the security situation improves.

    US President Donald Trump has recently signed an executive order that includes a 90-day entry ban on citizens of seven Muslim-majority countries including Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen.

    http://www.basnews.com/index.php/en/news/middle-east/327647
    0

  5. Why a travel warning now when ISIS is 95% eliminated? Interesting that the Kuwaiti Dinar’s value is one of the highest in the region and they also have implemented a ban on travel… but only travel to the Arab countries that have a very low value compared to the rest of their region.

    ERBIL – The US Department of State released an official statement to warn the US citizens against all travels to Iraq as they may be targeted by the Islamic State (IS) and militia members in the country.

    “Travel within Iraq remains very dangerous, and the ability of the Embassy to assist the U.S. citizens facing difficulty is extremely limited. This supersedes the Travel Warning dated July 6, 2016,” the statement reads.

    The statement says the “U.S. citizens in Iraq are at high risk for kidnapping and terrorist violence,” ascribing it to the existence of a profound number of terrorist and insurgent groups in the country, including IS and “sectarian militias.”

    “Anti-U.S. sectarian militias may also threaten the U.S. citizens and western companies throughout Iraq,” the statement says.

    The Department State also warned the US citizens of Mosul dam failure which “could cause significant flooding and interruption of essential services from Mosul to Baghdad.”

    The US Federal Aviation Administration also prohibits US civil aviation from operating in or overflying Iraqi airspace with very limited exceptions due to the ongoing military activities and the fear of US airplanes being targeted by militia forces.

    http://www.basnews.com/index.php/en/news/iraq/327592
    0

    1. JC – please, please stop with the goldbugs on your site. It is just so tasteless. The year of the rooster? Really?

      There is grave evil in this gold worship and you should not be a part of it.

      1. First, I’m not a part of anything as you referenced. Second, I don’t see POM as having an issue with “goldbugs”. Third, I don’t see that user Golden Instrument has behaved in a way that is inappropriate or would warrant me not allowing his comments. Fourth, you are the only one I see being rude and tasteless. You may have a different opinion but please conduct yourself as a gentlemen.

  6. Hi JC, this post is not related to Iran money “assets”, but rather Iran’s “human assets”, so my apologies in advance as I thought it was appropriate to include this item here.

    Trump’s next act may be banning the H-1B visa! See how, Apple, Microsoft, Google and Facebook are now behind the fight with Trump against his ban on the 7 countries, which is perfectly legal and all within the framework of the law. They know what’s coming in the pipeline so they start to act now.

    Apple and other IT corps as businesses, can source the brightest “talent” (and cheapest) in nations such as Iran, India, Egypt and others. These workers are desperate to leave their own countries for a number of reasons. In the case of Iran which has the highest brain-drain in the world currently at 150,000 per annum, there is an endemic problem of injustice and a huge gap between rich and poor. Iran is also a very expensive place to live and the biggest concern is housing for the young and educated. It also has problems with unemployment which nepotism and endemic corruption makes the situation worse for any talented and educated young person. Standard of education is very good at least in government subsidised Universities, so top US universities (Princeton, Harvard etc.) have special programs to invite these young kids by facilitating their placement via US consulates in UAE or Turkey.

    What Apple and others are involved in is rigging the system through lobbying the immigration system to favor their own interest, i.e. importing young bright talent who are desperate to work in top notch corps in US. In this regard, these Liberal corporations are seeing their commodity of interest, i.e. Talent and they are willing to do anything to get. Hence the “Legal actions” against Trumps visa ban.

    These corps, aren’t doing this for the love of Islam or the people of these nations, but all so that they have a bigger pool of people with ideas who may not want the huge salaries of the natives! The new talents will work longer hours and will not complain much about anything as long as they work in such corporations.

    http://www.independent.co.uk/news/business/news/apple-donald-trump-muslim-ban-legal-action-sue-lawsuit-a7556466.html

  7. Just saw this on President Trump’s Twitter feed regarding Iran, timestamped at around 6:46 AM EST:

    “Iran was on its last legs and ready to collapse until the U.S. came along and gave it a life-line in the form of the Iran Deal: $150 Billion”

    This is a huge revelation regarding the secretive relationship of the Islamist Republic of Mullahs and the Democratic party of the US, who are a globalist cabal and have worked in concert with the EU, another Marxist cabal in domination and destruction of Iran as well as other much weaker nations in that region. Should we expect a regime change in Tehran next to a nationalist or at least secular regime? Is this the plan?

  8. Travel to and from the GCC countries seems to be under attack. Attempt to stop money movement prior to a big change in the monetary system?

    Sweden decided on Wednesday to halt its direct flights to Iraq due to deteriorating security conditions.

    A statement released by the Swedish Transport Authority said the decision will come into effect as of Wednesday and will include all airliners which operate direct flights to Iraq including the Iraqi Airlines, Zargros Airlines and the Berlin-based airline Germania.

    The Swedish authority explained that the decision was taken to ensure safety of passengers at the first place.

    The aforementioned companies have been regularly operating flights to Baghdad, Erbil, Sulaimaniya and Najaf.

    http://www.thebaghdadpost.com/en/story/5653/Sweden-to-halt-direct-flights-to-Iraq-as-of-today

  9. Thank you Mark, These are interesting events and I am certain more is coming that will make us all go WOW! Dubai a member of the GCC is a totally and absolutely fake city-state which is the home of the world’s crime ranging from money laundering, prostitution, and last but not least, SLAVERY. If you recall, in early 2016, Donald Trump was titled “King Cyrus” for several reasons.

    It was Cyrus the Great, the Achaemenid Persian king who invaded Mesopotamia in October 539 BCE and freed the Jews, from SLAVERY! If we see similarities between the two city states i.e. Babylon and Dubai I do not believe is coincidental.

    The warfare within the Jewish world intensified when Trump stepped in the game to win the nomination of the US presidency. Therefore, is it possible to imagine the non-Atheist Jews are seeing Trump as the Mashiach of not only the Jews but the entire humanity from the grip of the ancient, dark, sinister and utterly despicable cult which Many Persian Kings have gone after time and time again?!

    To see the events regarding the GCC, Kuwait, Iraq, Iran and Israel now ensuing in this historical and possibly mythical context may help in seeing the bigger picture. I would also like to add that George Soros who is now the world Villain and there are calls and talks regarding his arrest as a “terrorist” is absolutely similar to the last James Bond Plot, Spectre. I am a believer in synchronicities and as C.G. Jung suggested:
    “Synchronicities are mental road signs that assures us we are not imagining things”!

    However, whatever the “News” we shall hear regarding these, it may be helpful for us to contemplate on what is seemingly surreal or mythical, yet Myth is the building block of our potential history and that is the primary purpose of our “Myths”, in our folklore of heroes as well as in our children’s stories.

    What is certain is our collective human return to the ancient world, the world of our purity of thoughts, forms and what caused the human trauma in our collective ancient memories. What happened in our ancient history will happen again, such as Slavery, it never went away however the Liberals want to convince us, it’s their preoccupation because they have and they are involved in breeding this sinister human tragedy since they are profiteers and purveyors of this dark and anti-human cult. The destruction of Babylon may be repeated and the freedom of slaves may be what we may witness…the irony is that it is the very corrupt and ruthless occupiers of Iran who are saying it after 25 centuries:

    http://www.express.co.uk/news/world/742580/Donald-Trump-presidency-trigger-war-destroys-Israel-Gulf-Arab-states

      1. Thanks JC, I take it 21 March which coincides with the first day of the Spring Equinox has a significance!, which coincides with the Persian new year? If so, please reveal the code! lol

    1. I recall John Kerry schlepping the JCPOA decrying that if the agreement was not passed that the US dollar’s reserve currency status would be jeopardized. The absence of the JCPOA forces Iran to use currencies other than the US petrol-dollar for it’s oil trade and creates a smaller split market no longer quoted exclusively in US dollars! If this were to catch on, the dollar hegemony might disintegrate!

      After the JCPOA the US sanctions were scheduled to expire, and this is what Kerry intended because Iran could again use the petrol-dollar(the threat to the hegemony had been removed along with the sanctions).
      Congress however decided to not issue new sanctions but to extend the existing ones. This was seen as a violation of the agreement by Iran and has forced Iran to dump it’s US dollars and conduct all it’s business in the Euro. That move was completed on March 31, 2017 and it undermined the intended true purpose of the JCPOA(making the dollar again vulnerable)!
      The Saudi’s due to their historic role in the petrol-dollar and their leadership role in the Arab world have been given much by the US to ensure of their support for the dollar. They however were so displeased with the JCPOA that they threatened to dump their US dollar based equity and financial investments in response. This telegraphed to the US that if this was to continue the next step would be the Saudi’s no longer supporting the petrol-dollar!
      There are now two threats to the petrol-dollar, a slow death resulting from the consequences of the US sanctions on Iran, or a quick death at the hands of the Saudi’s who could kill the dollar at their displeasure!

  10. JC are the drumming with regard to Iran because of March 21st in your opinion? Seems unlikely given Trump’s desire to reduce the value of the dollar.

  11. The stability of the US dollar is dependent upon the ever increasing demand for it as the world economy and population increases. The main US economic export that it depends upon are US dollars that turn the US trade deficit into a surplus. This surplus stabilizes the value of the dollar by countering the trade deficits in other goods and commodities.
    The feedback signal for the dollar is it’s relative value in relation to other currencies. By this mechanism the FRB can judge the absorptive capacity the world has for dollars at any given point and make the necessary adjustments.
    If the world’s economy’s growth rate significantly declines or turns negative then the FRB/US cannot export dollars! If other nations begin to go off the Petrol-dollar or use other currencies for trade, then the demand for dollars also decreases and the value of the dollar decreases. In either situation the US dollar based assets would suffer devaluation. The US has financial markets larger than all the other such markets in the world combined. Most international debt is held in dollars.
    Everyone is so entangled in the US dollar that if it were to ever suffer the consequence of significantly diminished demand globally, everyone would be hurt, especially the US!

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