At a time when the downgrading of European countries and banks are making the headlines, the most important information of the week was the following one :
January 24, 2012 : India has decided to pay for its imports of Iranian oil in gold instead of dollars.
India becomes the first country to pay for oil in gold.
Some will see this as a way for India to bypass / reject the embargo and the sanctions that United States and the EU want to impose on Iran. The reality is that some countries have no choice but to continue importing oil from Iran.
China is expected to announce the same decision very soon.
China and India represent 40% of Iranian oil exports and have both, large gold reserves.
PressTV released the information : click here.
The end of the dollar as the international reserve currency is now well underway. This kind of information is to be taken very seriously.
Time will tell if Iran experiences the same fate as the only two countries which have tried in the past to sell their oil exports in a currency other than USD : Irak and Libya
Gold is gradualy taking back its rightful place as the ultimate currency of exchange. Unlike paper money, gold is not suffering from any political influence and is accepted by all.
There is no doubt that the United States will not appreciate this decision from India and especialy Iran.
Buying oil against dollars automatically supports the dollars spot price, which is very helpfull for the US when considering that the dollar is being devalued / destroyed by inflationary monetary policies conducted by the FED.
What is at stake here at the international level is a fight between two monetary systems : a fiat monetary system and a gold backed monetary system. But in view of the recent geo-politic news, the outcome is very clear : gold will be back as the basis as the future monetary system.