India to Pay For Iranian Oil In Gold Instead Of U.S. Dollars

[Reub]

http://www.debka.com/article/21673/

From the article:

"India is the first buyer of Iranian oil to agree to pay for its purchases in gold instead of the US dollar, debkafile's intelligence and Iranian sources report exclusively.  Those sources expect China to follow suit. India and China take about one million barrels per day, or 40 percent of Iran's total exports of 2.5 million bpd. Both are superpowers in terms of gold assets."

[MediumTex]

I'm sure those Somali pirates are going to be licking their chops at the opportunity to snatch one of these Indian ships packed with gold.

That's old school pirating there.

[murphy_p_t]

petro-dollar regime failing?

[Reub]

I'm sure those Somali pirates are going to be licking their chops at the opportunity to snatch one of these Indian ships packed with gold.

That's old school pirating there.

Yes, it makes me quite nostalgic!

[stone]

The thing is though that the arrangement was made over a year ago:
http://www.zerohedge.com/article/india- ... n-oil-gold

This just seems to be raking it up again in the context of the current saber rattling.

[MediumTex]

The thing is though that the arrangement was made over a year ago:
http://www.zerohedge.com/article/india- ... n-oil-gold

This just seems to be raking it up again in the context of the current saber rattling.

Never let the facts get in the way of a good story.

[cabronjames]

any stats or estimates on what the "market share" of global trade is, bt USD, EUR, JPY, gold, etc?

or specifically the share of the global oil trade?

[MediumTex]

Has this Iran/India/Oil/Gold story actually been confirmed?

I don't see it being carried by any major news outlet.

[dualstow]

I don't see it being carried by any major news outlet.

Good point. I haven't, yet.

It's interesting to see gold actually being used as money, or something very close.
US dollars and frozen bank accounts subverted. I suppose gangsters would never go this route: briefcase would be too heavy, price changes daily, etc. Sure is compact, though.

[Reub]

The major news outlets are busy analyzing Mitt Romney's tax returns.

I just saw this, though:

http://www.forexcrunch.com/gold-for-oil ... ar-report/

This article could just be citing the same source that I did.

[MediumTex]

The major news outlets are busy analyzing Mitt Romney's tax returns.

I just saw this, though:

http://www.forexcrunch.com/gold-for-oil ... ar-report/

This article could just be citing the same source that I did.

This sounds sort of fishy to me.  After being out there this long one would think that the price of gold would have reacted to it and one of the bigger news outlets would have picked it up since confirming it would seem to be pretty easy--just call an Indian official and ask them to confirm or deny.

The fact that there is NO coverage among the larger outlets is weird.  This it typically the kind of story that you would see something about from Reuters or Bloomberg, just because it has an obvious international and business angle.

[MachineGhost]

that there is NO coverage among the larger outlets is weird.  This it typically the kind of story that you would see something about from Reuters or Bloomberg, just because it has an obvious international and business angle.

It's probably just a rumor.  But its likely rumor enough to cause the NeoCons and their apologists to attack Iran, just as they did Iraq or IMF.  One thing the MMT doesn't take into consideration is that being the world's reserve currency and having commodities paid for in dollars may be immensely more powerful than taxes and legal tender laws.

Do note however that the Middle East paying for their oil in dollars is 100% voluntary.  It was agreed to in the early to mid 70's.

MG

[stone]

There has been a steady trickle of bilateral trade agreements between the China and Brazil, Russia etc not using the USD. I think it is a gradual slipping away from the USD accounting for the overwhelming bulk of global trade. I guess in time some SDR type set up might come into place and the BRIC countries want to make sure that they are fully represented in such a currency basket.

[TripleB]

I suppose gangsters would never go this route: briefcase would be too heavy, price changes daily, etc. Sure is compact, though.

The price of USD changes daily too. It just depends on your perspective.

[dualstow]

I suppose gangsters would never go this route: briefcase would be too heavy, price changes daily, etc. Sure is compact, though.

The price of USD changes daily too. It just depends on your perspective.

Not that I have any connection to them, but that never seems to matter with loan sharks or the criminal element.
I could see that being an issue with the Russian mafia when I was living in Moscow in 1994 and the ruble was all over the place, but guess what- they got around that by using US dollars.