“It’s Final” U.S. Will Strike Iran, Says Saudi Informant

By Dominique de Kevelioc de Bailleul

The triggering event to WWIII could be as early as October, according to Debka-Net-Weekly’s intelligence moles.  Iran cannot be allowed to sell Iranian oil for any other currency other than the U.S. dollar—a fatal mistake Iraq’s Saddam Hussein made in his quest to lead the charge to undermine U.S. dollar hegemony in 2000.

“It is already decided,” one Saudi prince told an unnamed European official, according to Debka-Net-Weekly.  When asked by the ‘European’ if America will back out of the hatched plan to strike Iran, the prince said, “Anything can happen, of course. But this time we’re sure the American decision to attack is final and we are already making appropriate preparations.”

However, according to the source, the prince doesn’t know if a strike on Iran will come before or after the elections in November.  But, “the question now isn’t if the Americans will attack Iran, but when,” the prince said.

And the Saudis should know best.  Fears of an Iranian attack on Saudi Arabia run deep in the kingdom for its role in allowing a formidable US presence in the Persian Gulf for more than four decades, a sin for which Saudi Arabia will never be forgiven by the Muslim alliance in the region, and has necessitated a close U.S.-Saudi alliance to counter threats from Iraq (no longer an issue), Saudi Shiites and Iran.

Iran’s hatred for the U.S. can be traced to 1953, the year of a successful coup by MI6 and the CIA to overthrow the Mohammad Mosaddegh government.  But after the fall of the last Shah of Iran, Mohammad Reza Shah Pahlavi, in 1979, decades of Iranian defiance of American demands to open Persian oil fields to the West, in a similar manner to the Saudi kingdom’s quid pro quo with Washington regarding access to Saudi Arabia’s abundant Ghawar oil fields, have been repeatedly spurned by Iran’s secular and religious leadership.  But as long as the Iranians continued to transact in U.S. dollars for Persian oil, a strong case for averting a high-risk war with Iran at this time could be made.

But, Feb. 27, 2012, Iran crossed the proverbial line in the sand following an American-led effort to cut Iran from the international bank clearing system, called SWIFT.  The Persian central bank announced that, not only will any country doing business with Iran be allowed to pay in any currency other than the U.S. dollar, but those countries wishing to transact in gold (anti-dollar) are encouraged to do so, with the latter option especially troublesome and defiant.

“Significant difficulties in making dollar payments to Iranian banks have forced Iran’s trading partners to look for alternative ways to settle transactions, including direct barter deals,” according to Reuters.

“In its trade transactions with other countries, Iran does not limit itself to the U.S. dollar, and the country can pay using its own currency,” Reuters quoted central bank governor Mahmoud Bahmani as saying. “If a country should so choose, it can pay in gold and we would accept that without any reservation.”

That latest transgression, just as all the other transgressions of Iran since 1979, this time, the de-linking of the U.S. dollar to Iranian oil, must be punished, according to MIT professor and U.S. foreign policy expert Noam Chomsky.

“Iran broke ranks with the United States in 1979, and this is a crime for which it has to be punished,” said Chomski in a discussion with Gilbert Archcar for the book, Perilous Power.  “And it goes way beyond rational state interests. As with Cuba, it’s the Mafia mentality: You can’t allow disobedience to exist; it’s too dangerous because other people might get the idea that they can be disobedient as well.  So Iran’s going to have to be punished for that act of disobedience.”

Punishment of Iran through sanctions for an uncooperative regime regarding U.S. interests in the Middle East is one thing, dropping the U.S. dollar is quite another—an act so grave that, if the U.S. allows Iran to go unchallenged or unpunished, other countries seeking to ditch the poorly managed dollar will do so, as well.  That’s the line in the sand that must lead to military action, according to William Clark, author of The Real Reasons Why Iran is the Next Target: The Emerging Euro-denominated International Oil Marker

Written some time prior to Feb. 2012, Clark, at that time, focused his discussion on the dollar-euro rivalry for international trade as it relates to Iran’s Oil Bourse.  Iran’s goal of only accepting euros for its oil is enough to find Iran in hot water,  but Iran’s one-step-further threat to U.S. dollar hegemony by including gold in its February 2012 announcement, the Achilles’ Heel of the nonredeemable U.S. dollar, only serves to underscore Clark’s thesis that much more.

“In 2005-2006, The Tehran government has a developed a plan to begin competing with New York’s NYMEX and London’s IPE with respect to international oil trades – using a euro-denominated international oil-trading mechanism,” Clark wrote.  “This means that without some form of U.S. intervention, the euro is going to establish a firm foothold in the international oil trade.

“Given U.S. debt levels and the stated neoconservative project for U.S. global domination, Tehran’s objective constitutes an obvious encroachment on U.S. dollar supremacy in the international oil market.”

And Tehran’s “obvious encroachment” comes at a very bad time—for the U.S., that is—but comes at an opportunistic time for Iran, as it will be able to count on a strong Russian and Chinese alliance against U.S. aggression for control of crude oil in the Middle East—oil badly needed by the Chinese and strategically aligned Russia.

At this stage, odds now seem to favor WWIII, a risk Washington must take to achieve an all-or-nothing outcome to the alternative: the inevitable end to the U.S. dollar as the world’s premiere reserve currency and the dire implications of second-world status for the United States, hyperinflation and civil unrest, or worse.

Clark stated, “Clearly, there are numerous risks regarding neoconservative strategy towards Iran. First, unlike Iraq, Iran has a robust military capability. Secondly, a repeat of any ‘Shock and Awe’ tactics is not advisable given that Iran has installed sophisticated anti-ship missiles on the Island of Abu Musa, and therefore controls the critical Strait of Hormuz.

“In the case of a U.S. attack, a shut down of the Strait of Hormuz – where all of the Persian Gulf bound oil tankers must pass – could easily trigger a market panic with oil prices skyrocketing to $100 per barrel or more. World oil production is now flat out, and a major interruption would escalate oil prices to a level that would set off a global Depression. Why are the neoconservatives willing to takes such risks? Simply stated – their goal is U.S. global domination.

Oil already trades at $100, partly as risk premium to a closing of the Persian Gulf.  When an attack on Iran is underway, all bets are off for any graceful transition to new global reserve currency scheme.

Persian Gulf Crisis Staged for Fed Bailout of European Banks

As Italian bank UniCredit hangs by a thread as the potential European version of a Lehman Brothers collapse, but many more times over, one has to wonder about the timing of other seemingly unrelated events in the Persian Gulf.  Sign-up for my 100% FREE Alerts

Newsletter writer Jim Willie Ph.D of the Hat Trick Letter told the Silver Doctors radio show that UniCredit is the bank to watch for its Lehman-like potential in the Eurozone.  A collapse of UniCredit most assuredly will trigger the feared financial Armageddon scenario within an economic block representing approximately 22 percent of world GDP, an event the U.S. and China do not want to happen.  For them, a European credit collapse immediately moves the crisis to the U.S. and China.

“So next on tap is UniCredit going bad, going bust, failing, turning to dust. And when that happens look for at least another couple Italian banks to also go bust,” Willie said.  “And when that happens look for the French banks to go bust. The three major French banks. Credit Agricole, BNP Paribas, and Societe Generale. And when that happens look for at least one or two London banks to go bust- they’re all inter-connected!”

Founder of Global Resource Investments, Rick Rule, told King World News he senses something in the wind suddenly from OPEC’s swing producer, Saudi Arabia.

“One of the major developments in the oil sector is the recently announced and official Saudi Arabian position that they were able to produce another 2 million barrels a day in case Iranian crude is shut out of the market,” Rule told KWN host Eric King. “They also stated they could identify another 500,000 to 700,000 a day, which they would be able to produce in 9 months.

“The interesting thing in that press release was the fact that the Saudis were targeting 100 U.S. dollars per barrel,” Rule continued.  “The earlier Saudi indications were $75 a barrel.  It’s fascinating that the Saudis are now interested in establishing a floor price for oil in the triple digits.”

U.S. and Russian warships cruising around the Persian Gulf, Israel pretending to be the unleashed mad dog of Washington’s strategic plans against Iran, and a lot of saber rattling—again! — from all sides, higher and higher oil prices appear to be serving as the mechanism for a worldwide tax collection effort by Washington and the Fed to bailout Europe.  And who collects the oil price tax? The Middle East.

“Aabar Investments PJS, the Abu Dhabi-based sovereign wealth fund, plans to increase its stake in UniCredit SpA to 6.5 percent through the lender’s rights offer, which would make it the bank’s biggest investor,” Bloomberg reported on Jan. 18.

That, in addition to the half-billion dollar currency swap with Europe has Fed-driven foreign policy fingerprints smeared all over artificially high oil prices.

U.S. warships raise the price of oil for its friends in the Middle East, who then help the Fed bailout European banks while providing support to the dollar.

In his essay of December 2006, titled, Hysteria Over Iran and a New Cold War with Russia: Peak Oil, Petrocurrencies and the Emerging Multi-Polar World, author William Clark explained that the Fed must somehow continue to create demand for the U.S. dollar to continue the Treasury Ponzi scheme, which may at times include the use of the U.S. military in order to continue to fund debt, deficits and military spending.  And the demand for the petrodollar is critical to maintaining artificially low interest rates, according to Clark.

What Clark may not have seen in 2006 is the dramatic collapse of the global debt Ponzi scheme.  The euro is indeed a threat to the dollar as a reserve currency, but now the euro must not be allowed to collapse overnight, a point suggested by Jim Rickards in his book, Currency Wars—a book published after the collapse Lehman Brothers of 2008.

Ironically, this leaves the Fed no choice but to bail out Europe to save the dollar, thus the UniCredit bailout scheme with the Middle East.  Surely, in future more Arab nations will pick up some of the sudden slack from China’s and Japan’s reduced exposure to Europe and the U.S. debt markets, all thanks to a windfall of higher oil revenue generated in the Middle East.

Clarke wrote in December 2006:

The petrodollar-recycling system allows the Federal Reserve to effortlessly expand global credit to enforce U.S. financial control and continue massive debt-financing to pay for U.S. military control. If petrodollar-recycling begins to break down, then financial and military control will also begin to decline. Ergo, petrodollar recycling can not be allowed to diminish as it will undermine U.S. supremacy. The major oil-producers that have expressed interest in petroeuros or a “basket of currencies” for oil transactions and thus pose the greatest threat have been Iraq (under Saddam), Iran, Venezuela and Russia. Iraq received regime change via a military invasion; Iran is the current target for economic and geostrategic reasons, Venezuela was subjected in April 2002 to an unsuccessful coup d’état with covert U.S. backing, while Russia’s political establishment remains relatively insulated from U.S. interventions. But Russia’s peripheral states are, however, subject to U.S. meddling via “color revolutions” as part of Washington’s encirclement strategy.  China remains in the background as an interested but somewhat enigmatic actor. (Bold text added)

After it became clear that European leaders weren’t going to easily come to the position of the U.S. to aggressively monetize debt with a blessing of Germany in the EU, suddenly the multi-year-long rhetorical lambasting of Iran for its nuclear enrichment plants has escalated to warships cruising the Persian Gulf–and at a time when the last thing the EU and U.S. economies need are higher oil prices.  Sign-up for my 100% FREE Alerts

Cuban Missile Crisis, the Sequel; $3,000 Gold Possible

In what appears as swift retaliation by Iran against U.S.-led economic sanctions imposed on the Persian Gulf state, suddenly Iran says it will no longer accept the U.S. dollar as payment for its oil shipments to India, Japan and China.

In addition, bilateral trade between Iran and Russia will break from the dollar for settlement in favor of Iranian rial and Russian rubles, according to Iran’s state-run Fars news agency.  Sign-up for my 100% FREE Alerts

But unlike a similarly bold move taken on Oct. 30, 2000, (effective Nov. 6) by Saddam Hussein to rid Iraq of the U.S. dollar as payment for Iraqi oil, Iran asserts the new arrangement to drop the dollar was Russia’s idea.

“The proposal to switch to the ruble and the rial was raised by Russian President Dmitry Medvedev at a meeting with his Iranian counterpart, Mahmoud Ahmadinejad, in Astana, Kazakhstan, of the Shanghai Cooperation Organization,” according to Bloomberg.

So, is the U.S. about to embark on another Iraq, or is the situation with Iran more akin to an October 1962 Cuban Missile Crisis with Cuba’s big brother, Russia?

Amazingly, or not (media ignored the euro-for-Iraqi-oil story, too), since the bombshell Iranian announcement, only a handful of news outlets of the West covered the dollar-dumping announcement of this vital story.  Of course, though, zerohedge.com (and PrisonPlanet.com’s posting of the zerohedge post) was one of these handful, providing adequate sourcing and commentary of the breaking news about Iran/Russia from China-based ChinaDaily.com.cn.

Most of the usual suspects of traditional media, however, have drawn attention to the threat of a closing of the Strait of Hormuz, instead—an important issue, no doubt, but its no longer news at this point in the crisis and certainly doesn’t compete with the latest development regarding the trashing of the Greenback from a member of OPEC on the same day Russia lays anchor in Syria to the north of Israel.

According to China Daily, “Russian warships patrolling the eastern Mediterranean Sea have docked at Russia’s naval supply facility in the Syrian port of Tartus, the private Addounia TV reported Saturday.

“Governor of Tartus Imad Naddaf received the ships’ leaders and expressed appreciation to Russia’s support for Syria, the report said.

“Russia’s state-owned Itar-Tass news agency quoted a source from the Russian Navy as saying that ‘It is planned that the port of Tartus will be visited by a big anti-submarine ship of the Northern Fleet Admiral Chabanenko and an escort ship Yaroslav Mudry.

So, it appears that the Iranians are a lot more prepared to deal with the U.S. than its neighbor to the West was, Iraq.

And for those familiar with the most likely reason for the attack on Iraq may also be familiar with William R. Clark, author of Petrodollar Warfare: Oil, Iraq and the Future of the Dollar.  Of course, ‘weapons of mass destruction’ was merely a sophomoric ruse in the call to war with Iraq.  So what was the reason?

In his book, Clark makes a case for a world that will most probably include a future riddled with war in the Middle East, as the U.S. takes preemptive measures to secure—not only oil—but more importantly, to assure a continuation of dollar hegemony in global trade as a means of preventing a Greenback collapse as a medium of exchange and value.

As a preface to his book, Clark posited an essay in January 2003, titled, Revisited — The Real Reasons for the Upcoming War With Iraq: A Macroeconomic and Geostrategic Analysis of the Unspoken TruthIn the essay, Clark cites an anonymous source who told him the NY Fed (through the Treasury ESF) ultimately dictates foreign policy via the U.S. dollar, and that any threat to the artificial support of the dollar must illicit an immediate response at the NSA level.

After reading Clark’s essay, anonymous, or not, the source appears to be a very, very good one.

According to anonymous:

The Federal Reserve’s greatest nightmare is that OPEC will switch its international transactions from a dollar standard to a euro standard. Iraq actually made this switch in Nov. 2000 (when the euro was worth around 82 cents), and has actually made off like a bandit considering the dollar’s steady depreciation against the euro. (Note: the dollar declined 17% against the euro in 2002.)

The real reason the Bush administration wants a puppet government in Iraq — or more importantly, the reason why the corporate-military-industrial network conglomerate wants a puppet government in Iraq — is so that it will revert back to a dollar standard and stay that way. (While also hoping to veto any wider OPEC momentum towards the euro, especially from Iran — the 2nd largest OPEC producer who is actively discussing a switch to euros for its oil exports).

Saddam sealed his fate when he decided to switch to the euro in late 2000 (and later converted his $10 billion reserve fund at the U.N. to euros) — at that point, another manufactured Gulf War become inevitable under Bush II. Only the most extreme circumstances could possibly stop that now and I strongly doubt anything can — short of Saddam getting replaced with a pliant regime.

Big Picture Perspective: Everything else aside from the reserve currency and the Saudi/Iran oil issues (i.e. domestic political issues and international criticism) is peripheral and of marginal consequence to this administration. Further, the dollar-euro threat is powerful enough that they will rather risk much of the economic backlash in the short-term to stave off the long-term dollar crash of an OPEC transaction standard change from dollars to euros. All of this fits into the broader Great Game that encompasses Russia, India, China.  [Emphasis added]

As we know, following Iraq’s decision to dump the dollar in favor of the Euro, 14 months later U.S. President George W. Bush delivered his ‘Axis of Evil’ speech on the first State of the Union address of his presidency on Jan. 23, 2002.  Iraq, Iran and N. Korean are the nations of that axis, according to Bush.

With Iraq as the first casualty of the Great Game, that leaves Iran and N. Korea left as targets and responses from Russia and China.

Calls for $3,000 gold are everywhere.  With central banks printing money at astonishing rates without formally announcing anything about it; tensions in the Persian Gulf rivaling the Cuban Missile Crisis; and an election year that sports the most threatening presidential candidate (Congressman Ron Paul of Texas) to the ‘establishment’ since John Kennedy (or maybe as far back as Theodore Roosevelt 1900-08), it appears early on that surviving 2012 without a major event is a very long shot, indeed.  Sign-up for my 100% FREE Alerts

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