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Thread: Iran buys massive amount of gold from Turkey, trading oil for gold = death of petrodollar

  1. #1

    Iran buys massive amount of gold from Turkey, trading oil for gold = death of petrodollar

    Another nail in the coffin of the petrodollar system.

    Once nations don't need to hold/use dollars to purchase oil its game over. The petrodollar system is what replaced the Bretton Woods system in the 1970s as the main impetus for the dollars role as the worlds reserve currency and all the benefits that entails.

    The main pillar of the petrodollar system is and always has been the Saudis.

    I really don't think the dollar will collapse as expected until the petrodollar system collapses and Iran trading oil for gold is a huge step. The toppling of the hous of saud would be another fateful event....wouldn't want to be in dollars when that happens!


    http://blogs.ft.com/beyond-brics/201...#axzz20BjoTZDy

    Nearly $1.4bn worth of gold was exported to Iran, accounting for 84 per cent of Turkey’s trade with the country.

    With Tehran struggling to repatriate the hard currency it earns from crude oil exports – its main foreign currency earner and the economic lifeblood of the country - Iran has began accepting alternative means of payments – including gold, renminbi and rupees, for oil.

    Turkey’s gold exports to Iran are part of the picture. As TurkStat itself noted, the gold exports were for “non-monetary purpose exportation”. Translation: they were sent in place of dollars for oil.

    “Iran is very keen to increase the share of gold in its total reserves,” says Gokhan Aksu, vice chairman of Istanbul Gold Refinery, one of Turkey’s biggest gold firms. “You can always transfer gold into cash without losing value.”

    According to Ugur Gurses, an economic and financial columnist for the Turkish daily Radikal, Turkey exported 58 tonnes of gold to Iran between March and May this year alone.

    “I saw the surge back in March, when gold exports increased by 36 times compared to March of 2011,” Gurses told beyondbrics. “I waited to see if the trend would evolve. Effectively, Iran converted $3bn of its reserves into gold through financial operations with Turkey, bypassing sanctions.”
    Last edited by nbruno322; 07-09-2012 at 10:31 PM.
    "Paper money has the effect to ruin commerce,oppress the honest, and open the door to every species of fraud and injustice"

    ~GEORGE WASHINGTON



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  3. #2
    hmmmmm, this is why we want to go to war with Iran?

  4. #3

  5. #4
    Right now Iran will take anything they can get in exchange for oil. Turkey was (and perhaps still is) their largest customer and their orders are now half what they were even last year and oil exports are responsible for a very significant percent of Iran's government revenues and 80% of their exports.

  6. #5
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  7. #6
    LibForestPaul
    Member

    So Syrian and Turkey, Turkey and Iran, Iran and Lebanon ...wonder how the house of Saud and Jordan plays in all of this. so many connections in so many different ways...

  8. #7
    Here is another great article on the topic:

    http://www.todayszaman.com/news-2861...d-exports.html

    Iranians take lion’s share of Turkey’s gold exports

    All eyes are on Turkish gold sales after roughly three-quarters of Turkey’s gold exports made it to Iran in the first five months of the year. Data from the Turkish Statistics Institute (TurkStat) have shown that Turkey exported gold worth $4.02 billion in the first five months of 2012, with $3.08 billion of that sum exported to Iran. This means Turkey’s gold exports to Iran have increased roughly eightfold compared to the same period in 2011. It is speculated Iranians are turning to gold as a method of saving as Western sanctions tighten.
    TurkStat data show that Turkey exported gold worth $4.02 billion in the first five months of 2012, with $3.08 billion of that sum exported to Iran. This means Turkey’s gold exports to Iran have increased roughly eightfold over the same period of 2011

    The mass purchase of Turkey’s gold is being undertaken by rich Iranian families living in Turkey. These families largely do business in the fields of construction and iron and steel production. There are rumors that they purchase Turkish gold via third persons in order not to be noticed, and that they entrust the purchased gold to the Central Bank of the Islamic Republic of Iran (CBI), again via third persons. The CBI supports the purchases in order to gain strength in the face of increasing sanctions from European countries.

    Sanctions are aimed at forcing Iran to curb its nuclear program and mainly target Iran’s energy and banking sectors. Turkey has become an increasingly important channel for the Islamic republic following new measures added to already tight sanctions earlier this month.

    A senior government official, who declined to be named, told Today’s Zaman that Iran collects gold from countries such as Dubai and India as well as Turkey. “Iranian companies both earn money through gold purchases and serve their country by strengthening its CBI.



    They are worried that new sanctions may come after sanctions imposed on oil sales, and they are working to strengthen the CBI,” the official stated. There are also rumors that the US is uneasy about the skyrocketing Iranian purchase of Turkey’s gold, and has been following the purchases.

    Erkan Kurtulmuş, president of the İstanbul Chamber of Commerce (İTO) Jewelry Committee, is worried that Iran may be struggling to increase its gold reserves before a possible war. In his view, there are “big players” involved in Iran’s gold purchases from Turkey, as ordinary customers would not be allowed to take a share of sales. Kurtulmuş also said Turkey imports scrap gold, which is melted down and then reshaped. However, the scrap gold business is mainly unregistered, and the state does not levy taxes in this sector. According to TurkStat statistics, Turkey exported the highest quantity to Iran in May of this year, with an amount roughly five times higher than in the same month in 2011. Gold exports to Iran reached $1.3 billion in May. The total exports to Turkey in the same month were worth $1.6 billion.

    Turkey has seen a rapid increase in Iranian-funded foreign companies within its borders. Turkish authorities suspect some of these may be front companies set up to circumvent Western sanctions. They are concerned that some of the activities of Iranian companies may risk an unwanted confrontation between Ankara and its Western allies. According to the Turkish Union of Chambers and Commodity Exchanges (TOBB), foreign companies financed by Iran in Turkey in 2011 totaled 590, an increase of 41 percent compared to the previous year. That puts Iran at the top of the chart for new foreign companies established in 2011 not only in numbers but percentage-wise as well. As of Dec. 31, 2011, the number of companies funded by Iran totaled 2,140, with a quarter having launched operations in the last year alone.
    "Paper money has the effect to ruin commerce,oppress the honest, and open the door to every species of fraud and injustice"

    ~GEORGE WASHINGTON

  9. #8
    http://www.al-monitor.com/pulse/busi...sent-to-i.html


    Turks Pack Gold in Armored Cars To Bypass Sanctions on Iran

    Turkey would normally pay for 8 million tons of crude oil and 8 billion cubic meters of natural gas imported from Iran by transferring money to the Central Bank of Iran. However, after SWIFT, the world’s leading money transfer company, stopped money transfers to Iran in March, Turkey has been paying for oil imports with gold.

    Ufuk Sanli of the daily newspaper Vatan reported that Turkey’s gold exports to Iran peaked in the last three months, reaching 60 tons. It turned out that the secret surrounding this exported gold, which has perplexed world markets, is that Turkey used it to pay for crude oil.

    Turkish-Iranian relations are going through their “golden” days. According to data released by the Turkish Statistical Agency [TUIK], Turkey's exports to Iran in the first five months of this year rose significantly, reaching more than $4 billion through May. Turkey's total exports to Iran totaled $3.6 billion for all of 2011. This is not a usual occurrence in Turkish-Iranian trade relations, and it is obvious that something unusual has been taking place. Even more mysterious was the increase in Turkish exports, which was due to its increased demand for gold so that it could pay Iran.

    According to calculations by economist Ugur Gurses from TUIK and Central Bank data, Turkey sold Iran $3 billion worth of gold [roughly 58 tons] in the first five months of 2012. Thus far, there has been no explanation from official sources regarding this unprecedented increase in the demand for gold since March. This led us to conduct our own investigations.

    SWIFT halted all money transfers to Iran in March, a move that pushed Tehran and countries importing crude oil and natural gas from Iran to search for new ways of making payments.

    China, the biggest buyer of Iranian oil, said it will make its payments in Chinese currency. India said it can pay with gold. Japan and South Korea have not said anything, but Turkey, which is Iran’s fifth largest buyer, soon began work on several formulas to overcome the problem.

    Turkey imports about 8 million tons of crude oil through the company Tupras, and 8 billion cubic meters of natural gas via the Botas pipeline. It deposits its payments to Iran into an account at the Turkish Halk Bank. These funds were then normally transferred to the Iranian Central Bank in monthly installments. According to what we heard in Ankara, Turkey began to pay for its purchases in gold bullion at the Iranian government's request.

    A banker who did not want to be identified said: “The president of the Iranian Central Bank, Mahmoud Bahmani, announced that Tehran was ready to accept national currencies and gold from the importing countries. The Turkish Central Bank doesn’t have a swap deal with the Iranian Central Bank. That rules out payments in local currency, and this is why payments can be made in gold.”

    According to statistics from the Energy Market Regulatory Agency, Tupras imported 5.9 million tons of crude oil in the January-April period. Of that total, 58% percent, or 3.5 million tons, came from Iran. Sources from the Turkish Ministry of Energy say that more oil than usual was imported from Iran in March and April. This corresponds to the period in which Turkey’s gold exports soared.

    How is the gold sent? Payments for oil and natural gas bought from Iran are held in a Halk Bank account. The bank converts the money into gold and delivers the gold in armored vehicles to Iranian Central Bank officials at the border. Sometimes, the gold is delivered using air cargo shipments.
    "Paper money has the effect to ruin commerce,oppress the honest, and open the door to every species of fraud and injustice"

    ~GEORGE WASHINGTON



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  11. #9
    It's why this country has murdered hundreds of thousands of Iraqi people and then wants "support" and "respect" for doing so.

    I think it can go fk itself

  12. #10
    Quote Originally Posted by parocks View Post
    hmmmmm, this is why we want to go to war with Iran?
    Isn't it on the same basis for invading Iraq? They wanted to trade in Euros I believe. The Imperialists didn't like that.

  13. #11
    Quote Originally Posted by parocks View Post
    hmmmmm, this is why we want to go to war with Iran?
    Quote Originally Posted by seraphson View Post
    Isn't it on the same basis for invading Iraq? They wanted to trade in Euros I believe. The Imperialists didn't like that.
    absolutely it was one of the reasons... Iraq wanted to use euros, and qadaffi wanted to trade oil in the gold dinar... US promised sanctions on anyone that trades in gold with Iran...so I'd expect a stronger move on the US part shortly, prob by announcing a concern of even a greater or even imminent threat by Iran in order to attack fast... Not good for Obama since elections are so close...but kudos to turkey for doing these regardless of US threats
    Life long democrat recently turned RonPaulitan

    Originally Posted by Austrian Econ Disciple
    "I like that guys spunk."

  14. #12
    Quote Originally Posted by papitosabe View Post
    absolutely it was one of the reasons... Iraq wanted to use euros, and qadaffi wanted to trade oil in the gold dinar... US promised sanctions on anyone that trades in gold with Iran...so I'd expect a stronger move on the US part shortly, prob by announcing a concern of even a greater or even imminent threat by Iran in order to attack fast... Not good for Obama since elections are so close...but kudos to turkey for doing these regardless of US threats
    Yes it is true that non-dollar oil trade goes straight for the jugular of US financial power and threats against it are taken very seriously.

    Highly highly highly recommend reading about the petrodollar system as it is what replaced the bretton woods system as the main justification as the dollars role as the reserve currency of the world.
    "Paper money has the effect to ruin commerce,oppress the honest, and open the door to every species of fraud and injustice"

    ~GEORGE WASHINGTON

  15. #13
    Yeah, the reason the dollar was even adopted as the world's reserve currency after the collapse of Bretton-Woods, aside from the sheer size of our economy, which meant everyone wanted to sell to us, was the fact that the dollar at that time was the least abused of all the widely circulated currencies, which made it the slowest of all the free-falling currencies (commonly misnamed "floating"), making it the lesser of all the evils.

    What is amazing to me are the dynamics that prevented other countries from establishing a sound currency since Bretton-Woods, one that really could have made the dollar more attractive as an alternate currency. Any sound currency in another country really would have increased in value, but it also would have priced any country's exports completely out of the global market, resulting in a massive trade imbalance. Everyone would want to sell their $#@! to that country at a huge artificial discount. Most of the producers in that sound currency country, and not just its exporters, would have been hard hit, with many drying up, as they would not be able to compete with artificially lower prices of goods and services from around the world. The United States was uniquely suited, with staying power in what was little more than a War of Producers Attrition. We simply had more and larger whole industries to throw under the economic bus than anyone else.

    The hidden inflation tax on our currency affected domestic currency holders, but that was incidental, I think, as all savers had to be thrown under the same bus. We at home were just caught in the crossfire. The larger effect of that hidden inflation tax was that it acted like a tariff levied on those who were selling goods to us and taking higher valued dollars in return. It was all a wash, though, as the difference just went to the banks.

    I'm fascinated by the dynamics involved, because it was all reactionary short term thinking on almost everyone's part, no differently than intellectual bottom-feeder Krugman and other brain dead intellectual fools, whose only thoughts are how to kick the can a little further down the road each time there's a crisis.

    I suppose the only way to establish a sound currency in the face of all that is if your entire economy was strictly a finance economy, with economic rents collected as a fee for having the most stable currency -- one that does nothing but rise in value relative to all others.

  16. #14
    Quote Originally Posted by parocks View Post
    hmmmmm, this is why we want to go to war with Iran?
    NO, DUH, it's cause they hate us 'cause we are free and are living under our beds. Geesh.
    "Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one."
    —Charles Mackay

    "god i fucking wanna rip his balls off and offer them to the gods"
    -Anonymous

  17. #15
    WOW, this one made DRUDGE REPORT and they talk about RON PAUL.

    So sad it's funny. THIS will be the reason for war with Iran...duh.

    http://freebeacon.com/gold-for-oil/
    Last edited by wgadget; 07-12-2012 at 05:14 PM.



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