Petrodoller and Petroeuro
There was an article in Rediff.com on oil economy. The US economy has been always dependent on the OIL the world buys in petrodollars and its foreign policy dependent on the arms sales around the world.
A handful American banks control the oil prices. The OPEC nations also have huge investments in these banks. Recently a middle east country invested hugely in Citi Bank. The OPEC countries also gain from the rising fuel prices.
To break away from this strong hold, countries like Iran and Russia have come together to form a parallel petro exchange and petroeuro. It was Iraq who started converting its oil trade to Euro. This was the main reason for the American invasion of Iraq. Now America is behind Iran. But it wont be a easy cake as Iraq, as the government of Iran has the strong backing of its citizens. Moreover they have a stealth Russian support.
A handful American banks control the oil prices. The OPEC nations also have huge investments in these banks. Recently a middle east country invested hugely in Citi Bank. The OPEC countries also gain from the rising fuel prices.
To break away from this strong hold, countries like Iran and Russia have come together to form a parallel petro exchange and petroeuro. It was Iraq who started converting its oil trade to Euro. This was the main reason for the American invasion of Iraq. Now America is behind Iran. But it wont be a easy cake as Iraq, as the government of Iran has the strong backing of its citizens. Moreover they have a stealth Russian support.
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