Iran: the problem is not atomic, is Economic!

Today I was waiting in queue to see my doctor and to kill the time I was reading a weekly newspaper when something held my attention: Iranian problems with the US.

iran-next.jpg In the article was clearly written that a group of experts has told the UN that even if they will start planning a Nuclear Warhead, they will need at least ten years to complete the development. Besides the experts have refused to accept the USA analysis that is reporting that Iran already have the Nuclear Bomb, or they are ready to finish its development (I’d like to remember all of you that the same experts told the world Iraq had Mass Murder weapons… and they were wrong!)
Returning to the main plot of this post… I read that Iran has started the development of another bomb against USA: they would start to exchange all their Petroleum in Euro and not in Dollars. If you are not an Economist-Born like me you are asking yourself: and what the h**l will change if they sell their petroleum in € and not in $?

Would you like me trying to explain some little things about this?

Well, easily(*) explained: if you have to buy a lot of petroleum, you have to keep in your wallet a lot of Dollars. It means that the more dollars are circulating in the wolrd the more valuable is that currency and the less influence the USA internal economy has on the currency. Now think if the 10% of the petroleum (the Iran quote) would be moved out of $.

(*)”easily” would not mean in a simple way, but I think “simplistic” would have been a better word… but nevertheless…

The daily petroleum exchange is rated 70 millions of barrels per day, so calculating 60$ per barrels (just taking a medium valus I remember) the total daily is more than 4 billions dollars a day! If you think that Iran is going to move 400 millions dollars every day, you can understand that USA will lose at least 80 billions dollars a year…

Of course this will mean that the United States of America will have to look deeply inside their own economy, because they will start losing the domain on the currency market….

Now I admit that my overview is very vague, with some numbers set in very fastly, but the fact that the REAL target of Mr. Bush is not an hypothetical Nuclear Bomb, but more probably is the risk to lose the power USA has since the Second World War.

OPS, not to forgot a simple thing… do you know what currency Iraq was using before being attacked by USA?
Euro!
And after the “America’s Victory over the Terror Regime“?

Dollars, of course!