Despite the European Union oil embargo, the full banking embargo and the assorted US sanctions, Iran hasn’t disappeared off the face of the earth and, like any nation, remains active in global trade. It just isn’t as easy as it used to be.
With the US Congress and the Obama Administration constantly imposing new sanctions and issuing new threats, Iran’s trading partners are constantly on the defensive, as the countries that haven’t already gotten an official waiver from the US issue statements trying to defend their exchanges of goods and services.
Cutting Iran entirely off from international banking has also made it difficult for some traders to pay for their purchases. Greece lost a good portion of its oil imports suddenly early this month when its efforts to pay through Turkish banks simply failed, while countries like India are looking more and more for barter transactions to avoid the banks entirely.
To that end, Iranian and Pakistani officials are currently conducting negotiations on a possible barter where Iran would acquire Pakistani wheat (a poor growing season has Iran trying to import additional food) in return for Iranian iron ore.
So the mighty US has prevented Iran using non-dollar currencies for oil trades in an attempt to preserve the US dollar's reserve currency status, but it can't counter barter!
Barter can be used at the local level with success, but at the international level things become problematic, especially as it can be more in view and so frowned upon by the almighty US.
Your beloved hero there in Cuba has been doing that for 53 years. In fact, the so called "internationalism" (doctors all over the world except in Cuba) that y'all love so much is exchange for goods. In Venezuela, for example, they get oil. Lately, as they embrace disaster Capitalism more and more, they want good ole US dollars, of course.
Big difference between Cuba and Venezuela and the situation regarding Iran sanctions as it relates to barter trading for payment Mr. Brainiac.
Is that so? Can you explain your brilliant comment, Einstein? And feel free to provide examples.
Johnny, if you consider Venezuela and Cuba to be good examples to support your statement then it would be a waste of time for me to try to explain the difference to you between a country that worries about it's relationship with the US and countries that don't.
And Castro, the guy ain't my hero but he is a survivor. Ya gotta give him credit for that.
Atta boy! Continue to reply by saying absolutely nothing while implying, assuming, surmising, extrapolating, taking things I haven't said out of context and twisting them around. This ought to be good. Empty and futile but good just the same.
Coincidentally, saying "it would be a waste of time for me to explain…" is the most transparent way of weasling out of an argument you can't – or don't know – how to handle and shows your knowledge of the subject matter: ZERO! But thanks for playing, it's been fun. If you ever do find the answer to your own question, please come back and let's discuss it like adults, unlike you, I happen to know a thing or two about that which you defend and know nothing about.
Cheers!
Johnny, you don't even understand your own post, much less the central point of the article. You are trying to cover your lack of understanding of the difficulties of barter trade on an international level. Next time think twice before you post on something you know nothing about.
The reason there are not many examples, you did ask for examples, of international trade using barter is because it is so difficult, which was my original point. That the US would likely disapprove of any such trade involving Iran would make it even more difficult. I said it was problematic, and the example in the article, Pakistani wheat for Iranian iron ore, will be the exception if they are able to pull it off. The US will may to pressure Pakistan out of the agreement if it sees the light of day. Barter, dollars, it won't matter, the US wants no one doing business with Iran except what the US approves. It's difficult, Johnny. If India manages to find a way to barter for Iranian oil it will be the same. The US has a lot of influence over India because of foreign aid we send their way. The US has even shared extensive civil nuclear technology with India. You think India might back down from any agreement with Iran if the US disapproves? Yea, they would.
Cuba, Venezuela are exceptions, and their barter is a direct result of a shared dislike of the US.
Since you are so keen for examples, why don't you list examples of international barter trade since you seem to think it is so easy. You can probably find some, but you won't find any national economies that can survive using barter as a significant part of their trade.
Don't run off yet, I'm having fun with this.
So US sanctions that employ the banking system as a weapon, end up having the unintended consequence of forcing the rest of the world to step away from the Western banking system entirely, and create a separate, non-US-dominated banking system.
That's gonna make some very powerful global banking interests — Goldman Sachs et al — very concerned.
Without a doubt, the US needs a massive regime change. Some day the entire world will boycott, disinvest and sanction both military occupiers of israel and the US. It will be the only way to save the world and ensure political, social and economic diversity. And peace, too.
There is much that Iran is doing in order to continue functioning under the spiteful and vicious Zionazi embargo. Bartering is one thing, they're also storing a lot more and their reserves are growing nicely. They're also cutting off some of the offending nations and not selling them any oil. Also, they're not paying their bills and stiffing those Western (i.e. American) companies they've traded with in the past for millions of dollars. I just love blowback!
if they don't do as commanded, the US will beat their chest real hard right in front of these slackers
Washington is gonna be mighty sorry that it imposed such oil trading challenges on Iran and its customers. The longer those sanctions remain in place, the better those countries will get at avoiding the petrodollar. India is apparently paying in gold bullion.
The spineless Europeans — the "poodle parade," as Pepe Escobar calls them — are cutting off their own noses to spite their faces, rather than stand up to Washington. I hope for their sake they're pondering what currency they're going to trade in when (and if) Iran ever comes back online as a major producer.
Everyone must have heard this one: There's more than one way to skin a cat.