4/15/07

Petrodollar Warfare?

Rational Manifesto has the latest on Iran's decision to shun the Petrodollar system.

It seems that war with Iran in some capacity is unavoidable. Indeed, this conflict has already manifested itself in some ways: US funding Jundullah in Pakistan, Israel secretly training militias in Iraqi Kurdistan (more on this later), and alleged US support for disaffected Sunni groups in southern Iran. As the posture of both nations grows increasingly firm, a diplomatic impasse may have arisen. Surprisingly, it is not the nuclear issue I am addressing, but Iran's decision to shed the petrodollar systemm, announced at the end of last month.

This decision has led the US to initiate economic warfare of the harshest sort, seeking to starve Iran's energy sector of vital investment