The Shoe Falls

Iran announced today that it would no longer trade its oil in U.S. dollars, instead using a basket of currencies, primarily the euro or the yen. They cited depreciating dollar value on exchanges. President Mahmoud Ahmadinejad last year called the falling dollar a “worthless piece of paper.”

If indeed the U.S. was primarily motivated by strategic concerns centered around oil in invading the Middle East, then this is a serious move on Iran’s part – it literally invites retribution. The next move will be up to Bush/Cheney. Attack? Invade?

Some cynics say that the Bush Administration is waiting on action against Iran until it can be done in such a way as to yield maximum impact on the U.S. elections in November. This cynic says the attack will happen before that time, and for bipartisan reasons, primarily oil.

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