Tuesday, October 30, 2012

Currency Warfare: What are the Real Targets of the E.U. Oil Embargo against Iran?

Tehran has warned the leaders of the E.U. countries that the new sanctions are foolish and against their national and bloc interests. But is this correct? At the end of the day, who will benefit from the chain of events that are being set into motion?

''The end of Iranian oil exports to the European Union and the decline of the euro will directly benefit the United States and the U.S. dollar.

What the European Union is doing is merely weakening itself and giving the U.S. dollar the upper hand in its currency rivalry against the euro. Moreover, should the euro collapse, the American dollar will quickly fill much of the void. Despite the fact that Russia will benefit from higher oil prices and greater leverage over E.U. energy security as a supplier, the Kremlin has also warned the European Union that it is working against its own interests and subordinating itself to Washington.''