It doesn't matter if Iran lies or not, they can only choose worse sanctions and a possible war or do what we ask of them. Either way, it's up to them and we just have to wait until their inevitable capitulation. I'm very proud of our ability to get the entire security council to sanction them. They have no alternatives, not black markets, nothing but a few countries that we can simply take away from them at a latter date.

Naive to the core, this is meaningless because Iran will continue to sell ALL of their oil at market prices. Those countries you think we can just 'take away' will continue to buy from Iran no matter what we do. They won't go along, now or in the future. This move is just to get fools to think he's doing something.

They aren't selling at market prices. The Chinese have demanded deep discounts and they can't even get paid by the Indians who owe them billions that can't be transferred due to bank sanctions. In the end, we can turn off the switch to any oil exports at will if they choose incorrectly.

Hello folks, who are we to think that we can dictate to the world. It's not as if our track record gives us the moral high ground. The U.S. is upset that Iran is selling their oil to other countries using other currencies beside the dollar. Look what happened to Iraq and Libya when they switched selling their oil from dollars to other currencies. The petrodollar is the only thing propping up the dollar. It's all about oil folks. We trade blood for oil. We kill and displace millions of foreign people for their natural resources. Our soldiers are dying for oil. Are you going to let your child die for Wall Street and the oil cartels?

Trust, that's respectfully, nonsense. Libya and Iraq did not fall because they weren't using the dollar.

Even economically, the dollar isn't being propped up by oil trade. The dollar is propped up by the world's largest economy and compared to the woes of the Euro, the tatters of Japan, and the statist manipulation of the Yuan, it is the only major currency that offers stability, is traded on the free market, and is attached to a growing economy.

I'm so tired of people oversimplifying foreign affairs. Our entire policy on Iran is not tied to whether or not they trade with the dollar. It doesn't even matter what they trade in. No effect on the homeland or our markets and even so, they are still using the dollar anyway.

If you are looking for a common thread behind our engagements, the leader of Afghanistan, Iraq, Libya, and Iran have all called for the downfall of the US. That put them in the enemy camp along with NK, Venezuela, Cuba, and every other country that has taken an anti-American tone. In each one of those countries, the US has or is trying to overthrow the government and will do so as soon as they get a decent, workable opportunity.

I'm not in favor of this policy, but I do recognize the themes. America is very consistent. Anyone who acts against our interests.

@TrustVerify

Your track record very clearly indicates your hatred the U.S. Do you live in this country, are you a U.S. citizen? If so, you're free to leave at any time.

Stupidest comment anyone can make "If you're not happy with this country, you can leave it." Hey genius, this country was founded on dissent. We actually once had a revolution in this country to stop a foreign country from telling us what to do from across the pond. American's voicing their opinion, and dissenting against a corrupt system is what we're supposed to do. Wake up, take off your blinds chief, the world hates the US b/c of our foreign policy. B/c if we don't like someone who is leading a country, we will do anything and everything to destabilize it's economy, and hurt the people who live in the country. We don't hurt the politicians b/c they already have money. We hurt the ordinary Iranian (Iraqi, Afghani, N. Korean, Cuban, etc) who doesn't want war with us or Israel.

If you're too dumb to dissent against corruption, then maybe you should leave this country.

WOW TrustVerify... we finally meet.. this could get confusing LOL.

Hello Dante, respectfully it's not nonsense. Enclosed is one article of hundreds you can Google regarding the petrodollar and how it is propping up the dollar. This isn't over simplification this is fact. If it weren't for the petrodollar China, Japan, and any other country holding American Treasury bonds would get rid of them in a heartbeat.

“Petrodollar Poker” By James R. Gorrie Was Published Today In The Gorrie Details Column Of The Absolute Wealth Newsletter

Today “The Gorrie Details” column of the Absolute Wealth newsletter talks about the Iranian situation in the article, “Petrodollar Poker” by James R. Gorrie

Since the 1970s, oil has had to be purchased in dollars only, because that is the deal the U.S. cut with OPEC.

Austin, TX. (PRWEB) March 08, 2012

James R. Gorrie talks about how the Iranian situation is becoming ever more heated, the article in the newsletter explains, with some deeper questions than simply the possibility of nukes needing to be asked. The newsletter states, that the most interesting thing about the Iranian position is not simply its nuclear aspirations (sure, they want them but will Israel let them have them?) but also the money factor in the equation. The Absolute Wealth newsletter explains that the facts are, that Iran’s currency, the rial, is greatly devalued, the US-backed sanctions have really taken their toll on the Iranian economy, and the oil business is the only play the Iranians have.

The Absolute Wealth newsletter says, they begin to accept oil payments in gold from various buyers like India, China, and Russia, but do people ever wonder who is truly responsible for the gold-for-oil play, an Iranian Proxy. The article in today’s Absolute Wealth newsletter asks, is it really the Iranians?

For starters, the Absolute Wealth newsletter reports, the Iranians can see what happened to both Saddam Hussein and Muammar Khadafy when they tried to sell their oil in something other than petrodollars, and today, there are three U.S. battle groups in the region and the language of war is being spoken much louder than before.

The Absolute Wealth newsletter article by James Gorrie says, the possibility of a nuclear armed Iran is certainly there to one degree or another, and the Israeli’s are taking the rhetoric of the Iranian leaders very seriously, but it is James Gorrie’s sense that tells James Gorrie that it’s not the Iranians acting alone.

The article in today’s Absolute Wealth newsletter reports that since the 1970s, oil has had to be purchased in dollars only, because that is the deal the U.S. cut with OPEC. The article goes on to say in the newsletter, that the OPEC countries would then hold their dollars in US Treasuries. It has been a built-in support structure to prop up the value of the dollar after the U.S. left the gold standard in 1971, the newsletter reveals.

The reality is that the strength of the dollar since 1945 rests on being the international reserve currency for global oil transactions (i.e., "petro-dollar"). The U.S. prints hundreds of billions of these fiat petro-dollars, which are then used by nation states to purchase oil and energy from OPEC producers. These petro-dollars are then re-cycled from OPEC back into the U.S. via Treasury Bills or other dollar-denominated assets such as U.S. stocks, real estate, etc. The recycling of petro-dollars is the price the U.S. has extracted since 1973 from oil-producing countries for U.S. tolerance of the oil-exporting cartel.

Dollar reserves must be invested in U.S. assets which produces a capital-accounts surplus for the U.S. economy. The U.S. capital-account surplus finances the U.S. trade deficit.

Since it is the U.S. that prints the petro-dollars, they control the flow of oil. Period. When oil is denominated in dollars through U.S. state action and the dollar is the only fiat currency for trading in oil, an argument can be made that the U.S. essentially owns the world's oil for free.

So what happens if OPEC as a group decides to follow Iraq's lead and suddenly begins trading oil on the euro standard? Economic meltdown. Oil-consuming nations would have to flush dollars out of their central bank reserves and replace them with euros. The dollar would crash in value and the consequences would be those one could expect from any currency collapse and massive inflation (think of Argentina for an easy example). Foreign funds would stream out of U.S. stock markets and dollar denominated assets, there would be a run on the banks much like the 1930s, the current account deficit would become unserviceable, the budget deficit would go into default, and so on.

And that's just in the United States. Japan would be particularly hard hit because of total dependence on foreign oil and incredible sensitivity to the U.S. dollar. If Japan's economy tumbles, so does that of many other countries, especially the United States in a crescendo of dominos.

Now this is the potential effect of a "sudden" switch to euros, gold or Dinar’s. A more gradual shift might be manageable but even that would change the financial and political balance of the world.

The mighty dollar has reigned supreme since 1945, and in the last few years has gained even more ground with the economic dominance of the United States. By the late 1990s, more than four-fifths of all foreign exchange transactions, and half of all world exports, were denominated in dollars. In addition, U.S. currency accounts for about two thirds of all official exchange reserves. The world's dependency on U.S. dollars to pay for trade has seen countries bound to dollar reserves, which are disproportionately higher than America's share of global output.

It is important to note that the euro is not at any disadvantage versus the dollar when one compares the relative sizes of the economies involved, especially given the E.U. enlargement plans. Moreover, the E.U. has a bigger share of global trade than the U.S. and while the U.S. has a huge current account deficit, the E.U. has a more balanced external accounts position. One of the more compelling arguments for keeping oil pricing and payments in dollars has been that the U.S. remains a large importer of oil, despite being a substantial producer itself. But the EU is an even larger importer of oil and petroleum products than the U.S., and represents for OPEC a more attractive market, closer and less domineering.

The point of war against Iran, therefore, is to secure control of those oil fields and revert their valuation to dollars. Then to increase production exponentially and force prices to drop. Finally, to threaten significant action against any of the oil producers who would switch to the euro, gold or any other currency.

In the long run, then, it is not really Iran who is the target; it is the euro and foreign currencies and, therefore, Europe and Asia. There is no way the United States will sit by idly and let those upstart Europeans take charge of their own fate, let alone of the world's finances.

Hello trust_verify, we do finally meet. Great moniker by the way!

LOL I am glad "WE" think it is. I've been accused of a variety of things regarding it though. No offense but I think we are on very different sides of various coins. I am going to bow out on this topic to avoid confusion. My only comment is that for all these "sovereign" nations it sure is interesting that the world trades in dollars, at least as the basis of exchange.

I guess the debate between you and I and perhaps observers is which one is the doppelganger. Have a good one.

Trust. The Euro is not a serious currency. We can't even be sure that it will exist a year from now. As much as some of our enemies would have loved to spite us by turning to the Euro, it simply makes no sense. It is too weak, volatile, and unstable.

As for your article, take a grain of salt with opinion pieces. As easy as it is to swallow such a simple theory, our foreign policy is very complex. Try not to let yourself get convinced so quickly or easily. It is true that the US like's it's status as a reserve currency, but just because we like that position doesn't mean that the only reason we have a conflict with Iran is because they flirt with the Euro. Iran is doing far more against our interest than talking about Euros.

"Then do not be too eager to deal out death in judgement. For even the very wise cannot see all ends."

- Gandalf/ Tolkein

" I know not with what weapons World War III will be fought, but world War IV will be fought with sticks and stones."

- Einstein

Consider very carefully the wisdom handed down to us, and then perhaps consider re-considering your enthusiasm about war in general, and a high tech era war against an "enemy" for purposes that are beyond your understanding, specifically.

Hello Dante, I guess we will have to agree to disagree. The premise of the article is that if oil is purchased in any other form of currency not just the euro it will usurp the dominance of the dollar in controlling the oil market and retaining reserve status. You seem like a smart guy so I will post another article in the hope that you will read it. Most conflicts are over money or resources. Here you go!

Will Iran Kill the Petrodollar?

By: Marin Katusa | Wed, Jan 25, 2012
Share
Print Email

The official line from the United States and the European Union is that Tehran must be punished for continuing its efforts to develop a nuclear weapon. The punishment: sanctions on Iran's oil exports, which are meant to isolate Iran and depress the value of its currency to such a point that the country crumbles.

But that line doesn't make sense, and the sanctions will not achieve their goals. Iran is far from isolated and its friends – like India – will stand by the oil-producing nation until the US either backs down or acknowledges the real matter at hand. That matter is the American dollar and its role as the global reserve currency.

The short version of the story is that a 1970s deal cemented the US dollar as the only currency to buy and sell crude oil, and from that monopoly on the all-important oil trade the US dollar slowly but surely became the reserve currency for global trades in most commodities and goods. Massive demand for US dollars ensued, pushing the dollar's value up, up, and away. In addition, countries stored their excess US dollars savings in US Treasuries, giving the US government a vast pool of credit from which to draw.

We know where that situation led – to a US government suffocating in debt while its citizens face stubbornly high unemployment (due in part to the high value of the dollar); a failed real estate market; record personal-debt burdens; a bloated banking system; and a teetering economy. That is not the picture of a world superpower worthy of the privileges gained from having its currency back global trade. Other countries are starting to see that and are slowly but surely moving away from US dollars in their transactions, starting with oil.

If the US dollar loses its position as the global reserve currency, the consequences for America are dire. A major portion of the dollar's valuation stems from its lock on the oil industry – if that monopoly fades, so too will the value of the dollar. Such a major transition in global fiat currency relationships will bode well for some currencies and not so well for others, and the outcomes will be challenging to predict. But there is one outcome that we foresee with certainty: Gold will rise. Uncertainty around paper money always bodes well for gold, and these are uncertain days indeed.

The Petrodollar System

To explain this situation properly, we have to start in 1973. That's when President Nixon asked King Faisal of Saudi Arabia to accept only US dollars as payment for oil and to invest any excess profits in US Treasury bonds, notes, and bills. In exchange, Nixon pledged to protect Saudi Arabian oil fields from the Soviet Union and other interested nations, such as Iran and Iraq. It was the start of something great for the US, even if the outcome was as artificial as the US real-estate bubble and yet constitutes the foundation for the valuation of the US dollar.

By 1975, all of the members of OPEC agreed to sell their oil only in US dollars. Every oil-importing nation in the world started saving its surplus in US dollars so as to be able to buy oil; with such high demand for dollars the currency strengthened. On top of that, many oil-exporting nations like Saudi Arabia spent their US dollar surpluses on Treasury securities, providing a new, deep pool of lenders to support US government spending.

The "petrodollar" system was a brilliant political and economic move. It forced the world's oil money to flow through the US Federal Reserve, creating ever-growing international demand for both US dollars and US debt, while essentially letting the US pretty much own the world's oil for free, since oil's value is denominated in a currency that America controls and prints. The petrodollar system spread beyond oil: the majority of international trade is done in US dollars. That means that from Russia to China, Brazil to South Korea, every country aims to maximize the US-dollar surplus garnered from its export trade to buy oil.

The US has reaped many rewards. As oil usage increased in the 1980s, demand for the US dollar rose with it, lifting the US economy to new heights. But even without economic success at home the US dollar would have soared, because the petrodollar system created consistent international demand for US dollars, which in turn gained in value. A strong US dollar allowed Americans to buy imported goods at a massive discount – the petrodollar system essentially creating a subsidy for US consumers at the expense of the rest of the world. Here, finally, the US hit on a downside: The availability of cheap imports hit the US manufacturing industry hard, and the disappearance of manufacturing jobs remains one of the biggest challenges in resurrecting the US economy today.

There is another downside, a potential threat now lurking in the shadows. The value of the US dollar is determined in large part by the fact that oil is sold in US dollars. If that trade shifts to a different currency, countries around the world won't need all their US money. The resulting sell-off of US dollars would weaken the currency dramatically.

So here's an interesting thought experiment. Everybody says the US goes to war to protect its oil supplies, but doesn't it really go to war to ensure the continuation of the petrodollar system?

The Iraq war provides a good example. Until November 2000, no OPEC country had dared to violate the US dollar-pricing rule, and while the US dollar remained the strongest currency in the world there was also little reason to challenge the system. But in late 2000, France and a few other EU members convinced Saddam Hussein to defy the petrodollar process and sell Iraq's oil for food in euros, not dollars. In the time between then and the March 2003 American invasion of Iraq, several other nations hinted at their interest in non-US dollar oil trading, including Russia, Iran, Indonesia, and even Venezuela. In April 2002, Iranian OPEC representative Javad Yarjani was invited to Spain by the EU to deliver a detailed analysis of how OPEC might at some point sell its oil to the EU for euros, not dollars.

This movement, founded in Iraq, was starting to threaten the dominance of the US dollar as the global reserve currency and petro currency. In March 2003, the US invaded Iraq, ending the oil-for-food program and its euro payment program.

There are many other historic examples of the US stepping in to halt a movement away from the petrodollar system, often in covert ways. In February 2011, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), called for a new world currency to challenge the dominance of the US dollar. Three months later a maid at the Sofitel New York Hotel alleged that Strauss-Kahn sexually assaulted her. Strauss-Kahn was forced out of his role at the IMF within weeks; he has since been cleared of any wrongdoing.

War and insidious interventions of this sort may be costly, but the costs of not protecting the petrodollar system would be far higher. If euros, yen, renminbi, rubles, or for that matter straight gold, were generally accepted for oil, the US dollar would quickly become irrelevant, rendering the currency almost worthless. As the rest of the world realizes that there are other options besides the US dollar for global transactions, the US is facing a very significant – and very messy – transition in the global oil machine.

The Iranian Dilemma

Iran may be isolated from the United States and Western Europe, but Tehran still has some pretty staunch allies. Iran and Venezuela are advancing $4 billion worth of joint projects, including a bank. India has pledged to continue buying Iranian oil because Tehran has been a great business partner for New Delhi, which struggles to make its payments. Greece opposed the EU sanctions because Iran was one of very few suppliers that had been letting the bankrupt Greeks buy oil on credit. South Korea and Japan are pleading for exemptions from the coming embargoes because they rely on Iranian oil. Economic ties between Russia and Iran are getting stronger every year.

Then there's China. Iran's energy resources are a matter of national security for China, as Iran already supplies no less than 15% of China's oil and natural gas. That makes Iran more important to China than Saudi Arabia is to the United States. Don't expect China to heed the US and EU sanctions much – China will find a way around the sanctions in order to protect two-way trade between the nations, which currently stands at $30 billion and is expected to hit $50 billion in 2015. In fact, China will probably gain from the US and EU sanctions on Iran, as it will be able to buy oil and gas from Iran at depressed prices.

So Iran will continue to have friends, and those friends will continue to buy its oil. More importantly, you can bet they won't be paying for that oil with US dollars. Rumors are swirling that India and Iran are at the negotiating table right now, hammering out a deal to trade oil for gold, supported by a few rupees and some yen. Iran is already dumping the dollar in its trade with Russia in favor of rials and rubles. India is already using the yuan with China; China and Russia have been trading in rubles and yuan for more than a year; Japan and China are moving towards transactions in yen and yuan.

And all those energy trades between Iran and China? That will be settled in gold, yuan, and rial. With the Europeans out of the mix, in short order none of Iran's 2.4 million barrels of oil a day will be traded in petrodollars.

With all this knowledge in hand, it starts to seem pretty reasonable that the real reason tensions are mounting in the Persian Gulf is because the United States is desperate to torpedo this movement away from petrodollars. The shift is being spearheaded by Iran and backed by India, China, and Russia. That is undoubtedly enough to make Washington anxious enough to seek out an excuse to topple the regime in Iran.

Speaking of that search for an excuse, this is interesting. A team of International Atomic Energy Agency (IAEA) inspectors just visited Iran. The IAEA is supervising all things nuclear in Iran, and it was an IAEA report in November warning that the country was progressing in its ability to make weapons that sparked this latest round of international condemnation against the supposedly near-nuclear state. But after their latest visit, the IAEA's inspectors reported no signs of bomb making. Oh, and if keeping the world safe from rogue states with nuclear capabilities were the sole motive, why have North Korea and Pakistan been given a pass?

There is another consideration to keep in mind, one that is very important when it comes to making some investment decisions based on this situation: Russia, India, and China – three members of the rising economic powerhouse group known as the BRICs (which also includes Brazil) – are allied with Iran and are major gold producers. If petrodollars go out of vogue and trading in other currencies gets too complicated, they will tap their gold storehouses to keep the crude flowing. Gold always has and always will be the fallback currency and, as mentioned before, when currency relationships start to change and valuations become hard to predict, trading in gold is a tried and true failsafe.

2012 might end up being most famous as the year in which the world defected from the US dollar as the global currency of choice. Imagine the rest of the world doing the math and, little by little, beginning to do business in their own currencies and investing ever less of their surpluses in US Treasuries. It constitutes nothing less than a slow but sure decimation of the dollar.

That may not be a bad thing for the United States. The country's gargantuan debts can never be repaid as long as the dollar maintains anything close to its current valuation. Given the state of the country, all that's really left supporting the value in the dollar is its global reserve currency status. If that goes and the dollar slides, maybe the US will be able to repay its debts and start fresh. That new start would come without the privileges and ingrained subsidies to which Americans are so accustomed, but it's amazing that the petrodollar system has lasted this long. It was only a matter of time before something would break it down.

Finally, the big question: How can one profit from this evolving situation? Playing with currencies is always very risky and, with the global game set to shift to significantly, it would require a lot of analysis and a fair bit of luck. The much more reliable way to play the game is through gold. Gold is the only currency backed by a physical commodity; and it is always where investors hide from a currency storm. The basic conclusion is that a slow demise of the petrodollar system is bullish for gold and very bearish for the US dollar.

Hey trust_verify, I guess we can always agree to disagree. I learn a lot from other people on these blogs and am sure I will learn from you as well.

This just means it is possible for even tighter sanctions to be imposed in the future. Should keep this round of negotiations on its toes. Of course they could ignore the world around them, but only to their demise. I'm against war in all forms and here we have found an alternative. If you're isolated then your power outside your borders equals zero. We are witnessing the collapse of Iran before us and without a single troop.

You haven't seen anything collapse, get real.

I've seen Iran's currency, influence, and military power collapse.

I wouldn't be so sure about that, dante. There will always be a market for Iranian oil, probably to countries that hate us like N. Korea and those under sanctions of their own (also like N. Korea) or those who don't care what we think like China. And I'd be surprised if Iran couldn't get close to market rates on it.

Sanctions make a lot of noise and a few people miserable, but have they ever actually worked? I'm not a student of international history so maybe they have, but I don't think I've ever heard of a successful case.

Iran and Venezuela may provide the basis for an anti-American economic block.

China agreed to the sanctions under US pressure in the first place and NK doesn't have electricity, much more a need for that much oil. Once you get all the major powers in line, you find that rouge nations have very few places to go. Places like NK and Iran only exist because they have the backing of a major power. When that goes away, they are more like Zimbabwe.

This should clear up any faulty ideas people have about the alleged danger posed by Iran.

http://www.jpost.com/IranianThreat/News/Article.aspx?id=262275

US and Israeli intelligence agencies
mostly agree that Iran has not restarted its development of a nuclear bomb, the
New York Times reported on Saturday.

According to the report, the assessment among top US officials is that Iran has
not yet decided to pursue a nuclear weapon, a conclusion which was established
based on intelligence analyses.

Israel - while seeing an existential threat in Iran's possible pursuit of a
nuclear bomb - mostly agrees with those assessments, a US intelligence official
speaking on the condition of anonymity told the Times.

“Their people ask very hard questions, but Mossad does not disagree with the US
on the weapons program,” the Times quoted
the official as saying.

Sanctions aren't another war and you just said they are no threat to the US. Looks like we found the best way to make a country do what we want without military action. Make them pointless.

Your knowledge of the political system in Iran and the Middle East is less than zero. You are just another Jew hater. If you love Iran so much you can leave any time you want and please don't let the door hit you in your ssA.

You have to admit that Netanyahu doesn't seem to appreciate the gravity and tragedy of war. I do think he's playing to a hardline base more to the angels of sober and productive foreign policy. It is an unstable combination. Israel needs a new administration.

Of course I would say the same of Iran. Both countries have seemed to lost their ability to resolve issues between themselves which is why the US and the world community needs to be involved in the first place. I think both countries are driving a hard propaganda campaign against each other and now the populous can't even conceive of peaceful coexistence. Very sad indeed.

de oppresso, I can tell by your post that you really believe in freedom of speech. And since you seem to love Israel so much, go live there, but you can say anything you want, even a stupidity like the one you already posted.

@oppresso liber

Your post exposes totally your infant mentality.

Grow up and get this: the disapproval of israel government under nittyahoo does not equate to jew hating.

I have not shown any disrespect of jewish people in my past posts and this is a fact that even loyal and arden israeli apologists cannot deny or refute.

Iran only has 4.5% of the oil. It is worth turning off that spigot to ensure long term stability in that region. We can't have our policy in the Middle East dictated by oil. Rising fuel standards in the developed world and new oil discoveries each more than make up for hypothetically cutting off Iran completely. However the current plan is to have Iran's export partners demand deep discounts for the oil they do import so that the net effect is actually cheaper oil for everyone.

I just want to point out that the difference between the 2011 and 2012 model year of cars along is a 5% increase in fuel efficiency standards. By 2015, that adds up to 21% and by 2025 that's a doubling (half the amount of oil is used by cars sold). If the US is going to reduce it's oil consumption by 50% of the baseline, Iran's oil simply doesn't matter. There would be more to go around.

What's wrong with a dick move, anyway? We're kind of dicks and I'm proud of that.

what EXACTLY do you want obama to do? I'm curious.

You mean like 8 years of sactions under bush? Obama is the ONLY one in this country with fresh ideas that might actually get sanctions to work, because sanctions have in history NEVER worked even once.

This has a LOT of TEETH, in fact its a mouthfull of hurt for IRAN, and its showing.

Republicans couldnt even accomplish this much, they would just have gone to war. Which if we do I would rather have Obama, because he will use newly developed weapons under him to get this job done, for instance new version of MOP and HTV-2 to follow up. Most people have no idea how smart and tactical Obama really is. Or how powerfull a weapon HTV-2 hypersonic bomb and how MUCH of a game changer that weapon system is, most people are ignorant. If we do go into IRAN, it will be over fast.

If you think the GOP has a chance in getting elected a lot of people are going to be left dumb founded when Obama smashes everyone and gets re-ellected.

I almost didn't catch the sarcasm, Shaun. Good one!!!

Obama is the only one with fresh ideas... priceless.

As much as I dis-like obama, I'm smart enough to know he WILL be re elected. We are putting the wrong person up against him. I believe my party doesn't want to beat him, for some unknown reason. There's no way we can elect a cult member, with ties to both sides of the American/Mexican border.

Onapproach, please buy a big sheet for November, a handkerchief won't be enough for you.

the "military option" is still on the table.

and those countries have cut way down on purchases, so, while not a total embargo, still hurt iran. its a balancing act. If "the entire world" knows its "bs" then countries like japan would just ignore us and keep on buying iranian oil.

Gradual sanctions make a lot of sense.

The military option is always on the table, but economic sanctions are a preferrred mode of action being that the idea about war is to not have one, ideally. what I find in teresting is this:

"The State Department list did not include China and India, Iran's top two crude oil importers, nor U.S. allies South Korea and Turkey, which are among the top 10 consumers of Iranian oil."

So the oil sanctions are really not doing much but complicate the life of Euros and Japanese, who as a show of solidarity (or submission) to America are having to find alternate oil sources. It's more the Western block sticking together to hinder Iran. Now we have a test of strength of the West against the Middle East and the Far East. it's going to be interesting to say the least.....how captivating, it's going to go on for months maybe years....

well, they are good-intentioned and that is a good thing. but maybe they are wanting peace ( i.e. not get bombed by Iranians) because they love life, but anyhow they won't have much decision making influence if Iran starts the fireworks (which I seriously doubt they will being that they are busy making a nuke, and the oil sanctions are just increasing their resolve to get it done)

You would understand if you were an American.