US Economy, War against terrorism, Crude oil & Iraq War – The real reason

People do not realize that the real reason for Iraq war and the current war threat against Iran was not the nukes , not terrorism and not the Oil. It is all about protecting and propping up of the greatest con-job in the recent history, the US petro dollar scam

Back in 1971, the USA printed and spent far more paper money than it could cover by gold

• Few years later, French demanded redemption of its paper-dollar holdings in gold. But the USA rejected as it actually didn’t have enough gold for the dollars it had already printed and spent all over the world, thus committing an act of bankruptcy.
• So the USA went to the Saudis and cut a deal – OPEC denominate all sales of oil in US dollars
• From that point, every nation that needed to buy oil had to firstly hold US dollars, which meant that they exchanged their goods and services for dollars, which the Americans just printed.
• The Americans brought their oil literally for free by printing those dollars. The ultimate free lunch for the Americans at the expense of the rest of the world.
• However, the scam began to unravel when Saddam Hussein started selling Iraq’s oil directly for Euro, abrogating the cozy arrangement the Americans had with OPEC. Thus Saddam had to be stopped. How?
• USA concocted up a pretext to wage war (drama of twin tower blast) and invade Iraq and the first thing the Americans did was to revert sales of oil back to dollars. The currency crisis was averted for the moment.
• But Hugo Chavez (Venezuela President) also started selling Venezuelan oil for currencies other than dollars, so there were a number of attempts on his life and “regime change”, traceable right back to the CIA. The petrodollar cat was out of the bag.
• Iran President (Ahmedinejad), watching all of this, decided to kick The Great Satan in the goolies and do the same thing – sell oil for every currency EXCEPT US dollars.
• The shell game is coming to an end for the Americans. As the nations of the world find that they can buy oil for their own currencies instead of holding paper US dollars, more OPEC nations will abandon the dollar.
• The worst thing for the Americans is that eventually, they will also have to buy their oil with Euro or Rubles instead of just printing paper money to get it.
• That will be the end of the American Empire, the end of funding for the US military and the destruction of the US economy.
• The great scam is coming to an end and there’s not a lot that the USA can do about it, except start another world war!!!
• Wait and Watch… Only few years/months ahead.

It is several years that a plan for establishment of an oil exchange center under the title of “Iran Oil Bourse” (IBO) is under discussion. (1) The most important point about the plan is that it wants to replace dollar with euro for the currency that is used for oil transactions. According to the existing schedule, the IBO will start functioning from March 2006. Some sources have claimed that the US is so sensitive to this move against dollar that it is going to attack Iran before the IOB starts working. These sources claim that the same issue instigated the US attack against Iraq.

I do not think that IOB will be a real source of threat for anyone and source of interest for Iran at the present conditions and under the control of the Islamic Republic of Iran. The government of the Islamic regime of Iran, as an inefficient, unpopular, undemocratic, anti-human rights, corrupt, non-transparent, illogical (ignoring the national interests and defending the hardliner religious zealots all over the world), un-elected, tyrannical, mismanaged, isolated, sanctioned government, which is hostage to the religious ideology of the Arabs of 1400 years ago, is not able to start such a plan. At the same time, the engineers of the conspiracy theories of “petrodollar wars” are neglecting (probably intentionally) many important issues in this case. Most of these theories are based on false assumptions.

The Iranian oil Bourse will not start at the time claimed. It will not be able to make any changes in the oil market and it is not able to do any thing important against dollar. The countries like Russia, China, Europe and many others are not so na�ve to wait until a corrupt and inefficient system like the Islamic Republic of Iran makes a change that they like. If they were interested in doing something like this (changing the dollar base with euro for oil transactions), they would have done it much before. There are several attempts, including by Putin in Russia and the UAE for doing this and they were stopped due to the existing difficulties. The I R of Iran has not solved those difficulties and at the same time it has thousand of important problems over them. Which country or reputed company is ready to establish a brokerage unit for oil (as matter of fact for anything else) in the Kish Island of Iran and put its personnel and establishment subject to the jurisdiction of the revolutionary courts of Iran? Or the illegal acts of the disciplinary forces of the Iranian regime or the irresponsible actions of the “organized thugs” called Bassijis (note the attacks of the organized thugs against the foreign embassies in Iran due to several unimportant cartoons).

That is the petrodollar wars?

Hadi Zamani (2) in his informative and detailed series of articles about the Iranian oil bourse (written in Persian and posted consecutively in has mentioned: “according to the theory of petrodollar wars, the monopolistic situation of dollar for the foreign exchange reserves of the world imposes a great burden over all countries… It allows the USA to continue to have its structural economic imbalance and lets it keep its hegemony over the international economy… therefore keeping the status of dollar is at the top of the foreign policy priorities of the United States. At the moment, due to the risks and dangers that threaten the status of dollar, the US is following a militaristic policy in the Middle East region in order to stop the collapse of its economic, political and military hegemony… on the basis of the arguments related to the petrodollar wars, the reason for US attack against Iraq� was not combat against international terrorism or stopping Iraq from getting the nuclear weapons. The US aim was keeping the hegemony over the international economy. For the same reason, immediately after the occupation of Iraq, the US officials ordered the oil transactions of Iraq back to the dollar system…”.

Professor Krassimir Petrov (3), from the American University in Bulgaria (his article on this subject has been used by countless sources and websites as an academic argument for the validity of petrodollar wars theory) writes: “… Bush’s war in Iraq was not about existing weapons of mass destruction, about defending human rights, about spreading democracy, or even about seizing oil fields. It was about defending the dollar, ergo the American Empire; it was about setting an example that anyone who demanded payment in currencies other than U.S. Dollars would be likewise punished….The Iranian government has recently proposed to open in March 2006 an Iranian Oil Bourse�If so…The Europeans will not have to buy and hold dollars in order to secure their payment for oil, but would instead use with their own currency. The Chinese and the Japanese will be especially eager to adopt the new exchange. It will allow them to drastically lower their enormous dollar reserves and diversify them with Euros… The Russians have economic interest in adopting the Euro… Russians have also revived their nationalism; if embracing the Euro will stab the Americans, they will gladly do it and smugly watch the Americans bleed. The Arab oil-exporting countries will eagerly adopt the Euro as a means of diversification against rising mountains of depreciating dollars. Should the Iranian Oil Bourse gain momentum and accelerate, the interests that matter…will eagerly adopt the Euro, thus sealing the fate of the dollar. Americans cannot allow this to happen, and if necessary, will use a vast array of strategies to halt or hobble the exchange�s operations: Sabotaging the exchange, coup d’etat, Negotiating acceptable terms, joint UN war resolution, unilateral unclear strike, and unilateral total war. [this section is made brief]”

Jerome R. Corsi (4) has stated in his writings: “Iran and Venezuela have joined forces in an effort to undermine the U.S. dollar. In October 2005, Venezuelan President Hugo Chavez announced that Venezuela was ready to move the country’s foreign-exchange holdings out of the dollar and into the euro. He also called for the creation of a South American central bank designed to hold in euros all the foreign assets.”

Also, Mike Whitney (5) in his article dated Feb. 4 2006 claims: “Many war-weary newshounds are probably wondering why Russia caved in at the IAEA board meeting and agreed to have Iran sent before the UN Security Council� Obviously, Russia’s foreign minister comment that the referral to the UNSC is “only a warning” doesn’t adequately explain why Russia would have placed its ally in such grave danger of a preemptive attack. It may be, in the words of the Godfather, that the Bush administration made Putin “a deal he couldn’t refuse”. For one thing, Most News reports just yesterday that “Lukoil will replace the disgraced Halliburton” in providing fuel in Iraq…The truth is, that even the control of oil is not nearly as critical to the US as maintaining it’s continued dominance in the exchange of oil in greenbacks. If Iran is allowed to open its oil bourse (exchange) in March and openly compete with the US’s monopoly on trading oil in petrodollars, the central banks across the globe will dump hundreds of billions of dollars overnight, and the American economy will disappear beneath the waves.”

In his other article, Mike Whitney (6) has added: “…The [US] administration has no hope of securing the votes needed for sanctions or punitive action. The trip to the Security Council [of the Iranian nuclear case] is purely a ploy to provide the cover of international legitimacy to another act of unprovoked aggression… We should now be focused on how Washington intends to carry out its war plans, since war appears to be inevitable. Bush has no intention of occupying Iran. Rather, the goal is to destroy major weapons-sites, destabilize the regime, and occupy a sliver of land on the Iraqi border that contains 90% of Iran’s oil wealth. Ultimately, Washington will aim to replace the Mullahs with American-friendly clients who can police their own people and fabricate the appearance of representative government. But, that will have to wait. For now, the administration must prevent the incipient Iran bourse (oil-exchange) from opening in March and precipitating a global sell-off of the debt-ridden dollar..”

The answers to the theory

Paul Craig Roberts has written “readers keep asking if Bush is attacking Iran because it plans to open an oil bourse that would permit oil to trade in Euros…, the answer is no…, the dollar’s value depends on the world’s willingness to hold dollar denominated assets, not on the currency used to pay oil bills.” (7)

Once again looking at the articles of Hadi Zamani on the subject makes many points clear. He writes in the articles mentioned earlier that: “…those who oppose this doctrine argue [I have put the reasons that Zamani has mentioned in numbers changed some words accordingly]:

1- This doctrine exaggerates the status of dollar for the US economy.

2- The doctrine is ignoring the elements that have resulted in the present role of dollar as the reserves currency in the world and coasts of staying in such a position.

3- The euro is not able to tolerate the costs of being a currency for exchange reserve and the European countries are not ready for such a burden.

4- This doctrine is not taking into consideration the realities and complex mechanisms of the oil market

5- The doctrine is based on several handpicked evidences and it degrades the functions of the global economy into several conspiracies.

6- The first reason for the present role of dollar as the dominant currency in exchange reserves is the power of the American economy, not political conspiracies. The UIS produces almost one third of the Gross Global Products.

7- In the long run, dollar has more stability as compared to the other currencies.

8- Transferring the euro into the currency for the global reserves will increase its value 20 to 40 percent, and such an increase will weaken the exports of the euro countries considerably. The European economy is not powerful enough to tolerate such a pressure.

9- There is no serious indication that the countries of the world, including the oil exporting countries are ready to accept a euro based oil market. Since 1986 the oil prices are determined according to complex tables and spot changes in the New York and London exchange markets (called New York Mercantile Exchange, or NYMEX and International Petroleum Exchange or IPE correspondingly.)

10- OPEC countries are not ready to change the basis for oil transactions so easily. OPEC has tried several times to change the basis for the oil prices to euro, or Special Drawing Rights (SDRs of the IMF) or a basket of currencies and each time it has been abandoned.

The plan for establishment of Iranian Oil Bourse was first tabled in 2000� The IOB will include petrochemical products and gas too. In the initial phase the transactions does not include crude oil (perhaps up to three years). Later it will include all oil transactions including the swap operations of the Caspian Sea oil. According to the claims of the Iranian government the IOB will turn into a major oil transactions center in the Middle East. The transactions will be in euros and the monopoly of dollar over the global oil markets will be ended.

However, entering this business requires a reform and preparation in the economic, legal and administrative structure of the country. At the moment Iran lacks proper financial, banking, insurance, customs, and commercial structures, proper tax laws, the dominance of the governmental sector, lack of competition in market, weakness in attraction of foreign investment, lack of necessary expert manpower, lack of necessary advanced technology, weakness in the electronic commerce structure, lack of necessary economic, legal and technical infrastructures, lack of system of the credit cards in global level, lack of commercial customs, Iran is not still a member of the World Trade Organization (WTO), Iran is already under American sanctions, Iran is not in a proper situation in the global economy, Iran has to observe the OPEC quotas, and this limitation cannot work in an international oil bourse. The IOB is based on the good market for the producers, but the fluctuations in the oil prices may put the same countries in a difficult situation.

Zamani adds an important point for those who care about the religious aspects of the IOB and he says, “It seems that the IOB is against the religious rules of Islamic Shari’a in Iran. The IOB faces problems based on the Islamic jurisprudence limitations and stumbling blocks…oil bourse is in fact a future market. One of its aims is to reduce risks of the oil transactions… according to the studies of the Iranian experts, the mechanism of future oil bourse transactions is basically contrary to the Islamic jurisprudence of the Islamic Republic of Iran (please refer to the article in Persian by Hojaolislam Ghanimi Fard, and Mohammad Aram Bonyar in the site of Imame Sadegh University regarding the “Feasibility Study of the Establishment of the Oil Bourse by the Islamic Republic of Iran).” Zamani concludes: “The success of the oil bourse depends on transparency of the economic structure and rationalization of the Iranian foreign policy.” (8)

Also, Colin Nunan has written in the Energy Bulletin “…However, others have claimed that the idea that the currency in which oil is sold matters at all is based on a poor understanding of economics…Those arguing that the denomination of sales is crucial to dollar strength have tended to say that countries are forced to save dollars so that they have dollars to buy oil. Their critics, however, reply that you do not have to save in dollars to buy oil since you can save in whichever currency you want and then buy dollars on the foreign exchange market whenever you want to buy oil. What matters, say the critics, is in which currency people ultimately save rather than in which currency they trade�So can we conclude that an Iranian oil bourse trading oil in euros is the real reason for the current crisis? Perhaps this is prematurely jumping to conclusions… I have yet to see a clear statement on this from the Iranian government.” (9)

The IOB is a good idea. In the hands of a proper Iranian government that establishes good relations with many countries, including and especially the USA, it could turn in the long run into a profitable center. The present day Iran lacks the necessary preparations for such a move. Even if taking steps for such reforms are started today, it will take sometime to make the necessary grounds ready. However, the government of the Islamic regime of Iran is not even walking in the direction of those reforms. Unfortunately the IOB is a stillborn.

Rajendra Pratap Gupta
Cell : + 91- 9323109456
+ 91- 9867300045
(USA) +1515-450-6165
Skype: rajendra.india
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Mumbai Terror Strike – Root Cause of Terrorism

Misplaced priorities , corruption & lack of public awareness is the root cause of Terrorism

Let’s examine in detail. Our governments and disgraced politicians see vote in every individual and not an individual in every vote. They treat their families as the most important lives and the public as mere statistics. Just try to reason out why politicians are rarely killed ? Because they are heavily guarded and they have the intelligence reports that we know only after the terrorists strike !! Politician’s main goal is to ‘Report progress’, waste public money in press releases for image makeover or getting votes, making money by taking cut in deals or passing orders that benefit the big business houses and moneyed people to further their goals . Clearly the public welfare is not the goal of the politicians . Don’t hope much. If so many ministers have been sacked , it is only because the public anger will cost them votes in the coming elections or these ‘political bastards’ would be standing behind these corrupt or / and inefficient politicians and not dismissing them !!

The Politician- Bureaucrats-Businessmen- religious heads- Criminal nexus is eating the state and good governance in India. Today , all major business houses pay ‘fees’ to solicit political support . Trust me, not a single business house can survive and prosper without political support . All these are nothing but “an all cash deals”. This cash not only fills the political parties coffers but also that of the individual politicians . This money is used to get into power and not the intellectual class votes as many would impress upon us. If a few lakh people light candles and write slogans or shout at Gateway of India . Don’t think it will change the election outcome. As still ,a good 65 % of the rural folks who will be ‘Brought’ by these political parties and directed to stamp the ‘Lotus’ or the ‘Slapping and fearful hand- read congress’. If you want changes , you will have to do a lot more …..That’s why you will find that the public aspirations are never political goals !! There is a clear disconnect. India cannot have an Obama as it is not a ‘Personality’ based political system , it’s a party based political system. Except the ‘Gandhi’ dynasty no one has been able to sustain. There are roads , hospitals and even a Sanjay Gandhi Park in his name . Except being the son of the Prime Minister and a MP for five months ???? Still so many memories in his name ??? What did he do for this nation ?? This is what the World Famous Wikipedia search has in his name .

“Sanjay Gandhi (December 14, 1946 –- June 23, 1980) was an Indian politician, the younger son of Prime Minister Indira Gandhi and politician Feroze Gandhi. A controversial figure, he was accused of abuses during the Emergency and died in an aero plane crash shortly after his mother’s return to power. He had been elected to the Parliament of India five months before his death. Sanjay, along with his elder brother Rajiv Gandhi, studied Grades 1 to 6 at the Welham Boys’ School and Grades 7 to 12 at The Doon School in Dehra Dun, as well as in England. Sanjay never attended college, but took up an apprenticeship with Rolls-Royce. He was very interested in sports cars, and he also obtained a pilot’s license. While his elder brother Rajiv was building a career as an airline pilot independent of politics, Sanjay chose to remain close to his mother.”

Not let’s examine the corruption : I had raised an issue against the Mumbai Police Commissioner , A.N.Roy ( Currently , Director General Police , Maharashtra ). He had no option but to suspend the two corrupt police men. Though, there was a lot pressure on myself from him to withdraw the case & i did not . I wrote an open letter to him which was published by the media and he had to bow down. Today, one of the policemen who had taken bribe and has returned it later, and was suspended on those charges, is in the personal security of the Deputy CM , R.R. Patil. Whom public thinks is a damn honesty guy – What a joke !! If he is honest , why the hell did he keep Inspector Raju Mane in his staff ??? A.N.Roy is an inefficient officer and there are ample proofs of his incompetence . When the two police inspectors were suspended on my complaint, a few officers appreciated my courage to fight against their ‘Big Boss ( A.N.Roy was the Mumbai Police commissioner at that time) and they became my friends, and revealed to me in confidence , that there were gangs within the police force affiliated to the likes of Dawood Ibrahim , Chota Rajan and Chota Shakeel etc. And that for killing the rival gang members , the police force is ‘decently paid’ by these gangs. Having a police uniform is just a mere a public eyewash. Now you can understand , why despite the fisherman society’s President telling the Maharashtra police about the imminent terror attacks via Colaba fisherman’s village, the police did not act ? Who wishes to lose the ‘Hefty payments’ from these gangs. If policeman own the best of cars, gadgets and houses- Some of the policemen are owning bars and buildings !! Where does the money come from ??? A few days back , a Police inspector had called me on Diwali to wish me and informed that he was trying to get into Narcotics department . We all know ‘Rave parties’ and the use of drugs !! Now we can understand why all this will not stop.? Police is corrupt from ‘Top’ to ‘Bottom’ and most of the posts are ‘Sold’ rather ‘auctioned’. Get a CBI inquiry and all this will come to light .

Now let’s examine the awareness part. After every terror strike, politicians – officers make a announcement that they had warned months in advance, and they were even aware of the ‘target’. Here is the most important issue. First let’s take the case of the recent Mumbai terrorist strike. A lot of government agencies like RAW etc have given similar statements . When RAW came to know that the sea based attack was to happen at Taj Hotel and Oberoi hotel. For sure, that they did not dream this piece of intelligence . It would have come through some people , credible sources , intercepts. Why the hell these people not get into depth or the details. Suppose , you intercept a call. You can trace the caller and track him down till his location- technology today enables you to do it. The call certainly was between two countries and one of them was probably , India . It was easy to catch the guy in India and interrogate him , the terror strike could not only be averted but also have prevented future strikes . Or when the Colaba fisherman’s association President gave a written complaint to the DGP /CM about the probable terror strike. He must have seen a suspicious ‘Jetties or people coming on boats or talking about the same’. So the terrorists were known to us and no one tried to stop them. Allowing them kill 200+ people. If the police would have acted the very day this complaint was filed by the fisherman. The person who aroused definite suspicions must have been arrested , questioned and the Mumbai terror strike would not have happened.

I must ask you , why do we as public not know about such information in advance ? Why it is limited to the so called National Security Advisor or the Intelligence agencies. After all, we all as ordinary citizens die. Government wants public support ? But they do not want to disclose us about the strikes from terrorists ? We can do a better job than these inefficient police and politicians . Hand over the intelligence reports and we will handle terrorist Mr. Manmohan Singh !!

Role of money and where it comes from ? All builders in Mumbai take a portion of the cost of the flat or House as ‘Cash’. This is shared with BMC – CIDCO – Other approval authorities – underworld . Finally, the money paid to Bureaucrats get’s routed to the concerned politicians and the underworld money may be used in the blasts like the intelligence pointed at the involvement of Dawood’s role in the blasts. No need for a CBI inquiry. Just walk into any builders office . You will have all answers

Irony from the government is, that we still do not have a clearly defined policy against terrorism. We must formalize a policy that, INDIA WILL NOT TOLERATE TERRORISM. WE WILL DO ALL TO KILL ANY TERRORIST ENTERING , LIVING OR LEAVING OUR COUNRY. INDIA WILL NEVER NEGOTIATE WITH TERRORISM. A short ,clear and vocal policy against terrorism is an immediate need.

We cannot afford to wait , the media must play an active role and we will fight to win.

The result of writing this : I may die ( Read killed ) in a suspicious manner !! You might act and try and bring about the change that will have a lasting impact on our and the coming generation. ACT , ACT & ACT NOW or you might lie paralysed or dead in the next terrorist strike.

Rajendra Pratap Gupta
Cell : + 91- 9323109456
+ 91- 9867300045
(USA) +1515-450-6165
Skype: rajendra.india
E-Mail: /