January 27, 2006

THANKS TO THE HOSTAGE CRISIS, IRAN'S A FREEBIE:

57% Americans support military action in Iran (Greg Miller, January 27 2006, Financial Times)

Despite persistent disillusionment with the war in Iraq, a majority of Americans supports taking military action against Iran if that country continues to produce material that can be used to develop nuclear weapons, a Los Angeles Times/Bloomberg poll has found.

The poll, conducted Sunday through Wednesday, found that 57% of Americans favor military intervention if Iran’s Islamic government pursues a program that could enable it to build nuclear arms.

Posted by Orrin Judd at January 27, 2006 9:49 PM
Comments

I wonder how many people even remember the hostage crisis or if they do, associate it with Iran?

Posted by: erp at January 28, 2006 10:11 AM

The fact anyone thinks this has anything to do with "nuclear ambitions" never ceases to amaze me, Iraq started selling oil in Euros, it was invaded over mythical WMDs, Iran is plannig to open an oil bourse,low behold America is setting up for war over WMDs, it would be nice if someone could explain to the American people what a fiat currency is and how their economy is built upon it, perhaps then the actions of their government would be a little clearer...

Posted by: N Stewart at January 28, 2006 10:53 AM

N:

Euros? We wouldn't wipe our butts with them, never mind worry about them becoming a real currency.

Posted by: oj at January 28, 2006 11:27 AM

It seems your government is rather more up on the economics of the situation than yourself...

Posted by: N Stewart at January 28, 2006 11:37 AM

Exactly. Our government is the one printing bonds that the rest of the world is dying for because they can't trust their own economies.

Posted by: oj at January 28, 2006 12:04 PM

The rest of the world is hardly dying for US dollars ( although in Iraq that is very much the case ) many would like to sell much of their dollar reserves and diversify their holdings of foreign currency, but as oil is traded in dollars they can't, which of course brings us back to these "problems" in regard to Iran and Iraq, "problems" that have nothing to do with WMD's and everything to do with countries wanting to trade their oil in a different currency, which of course would severely hurt or possibly cripple the US economy...

Posted by: N Routledge at January 28, 2006 12:29 PM

They can denominate their oil in Monopoly money if the want to--it won't have any effect on us. There's only one currency in the world that has a future--dollars.

Posted by: oj at January 28, 2006 12:38 PM

You tell 'em, oj.

Posted by: erp at January 28, 2006 1:20 PM

I see economics is not your strong point and that you aren't quite up to the subject, perhaps you should look up "fiat currency" and "petrodollar" on your preferred search engine to find out exactly what would happen to the US economy if oil was sold in another currency ( even monopoly money ), that should assist you in seeing why the prospect of Iran opening up an oil bourse is concerning Mr Bush so much.

Posted by: N Stewart at January 28, 2006 2:16 PM

Why don't you tell us what would happen Stew.

(Interestingly, googling those terms as Stew suggests leads one to a unique combination of out there lefties and righties. On the left the oiiiilllll folks, and on the right, the hard-core gold std people.)

Posted by: Jim in Chicago at January 28, 2006 2:32 PM

"It seems your government is rather more up on the economics of the situation than yourself..."

Full disclosure N. Stewart. Since you're not one of us and don't share our government,where are you from and who or what is your government?

Posted by: erp at January 28, 2006 2:54 PM

leftie comrade, how is the dollar doing now ? don't know ? ask warren "lose $4B" buffet. what happens when the world gets scary ? everyone piles into dollars. just get to the point and quit all the pseudo-economic chin music...tell us how the 4th reich is rising around us but that we are too stupid and blind to see it without your vanguard like intelligence. guffaw.

Posted by: toe at January 28, 2006 2:54 PM

Fiat currency is the lunatic battle cry of people whho think stuff we dug out of the ground has real value but not a promisory note from the only significant nation on the planet.

Posted by: oj at January 28, 2006 4:34 PM

Of course they want to denominate oil with Euros, they are going to take over Eurabia in a couple of years after all.

Posted by: ic at January 28, 2006 4:42 PM

gold has minimal industrial value and absolutely no intrinsic value. most governments have been quietly unloading their stocks for a long time now. the bunker brigade is welcome to as much of it as we can palm off on them.

Posted by: toe at January 28, 2006 7:01 PM

The question that N. S. doesn't address is who, exactly, decided to make petro dollars dollars. If it was the USA, then tough luck, dude. If not, why haven't they already changed it to the Euro?

Posted by: Annoying Old Guy at January 28, 2006 7:33 PM

Arguments like this are often driven by ignorance of the scales involved. US GDP is about $12 trillion. World GDP is about $60 trillion (ppp). So, there is about $48 trillion dollars worth of economic activity in the world that is not dollar denominated. World trade is about 30% of world GDP and 25% of US GDP. So, of the $20 trillion of world trade, only $4 trillion involves the US.

Now, what about Iran's oil. Total world production of oil is about 85 million barrels per day. Iran's oil production is about 4 million barrels per day. Using $80/barrel, world oil production would be worth $2.5 trillion annually. Iran's oil production would be worth (drum roll) $117 billion.

So, Mr. Stewart's thesis is that having Iran's $117 billion of oil -- none of which comes to the US, by the way -- denominated in Euros would destroy our currency, even if the other $2.4 trillion, give or take, in world oil production stays in dollars, even though our $12 trillion economy swamps the $117 billion in Iranian oil and even though having the other $48 trillion in world economic activity not denominated in dollars doesn't have that effect.

Not very likely.

Posted by: David Cohen at January 28, 2006 9:08 PM

dc: facts for a leftist ? "come on!"

Posted by: toe at January 28, 2006 10:49 PM
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