The recent United States sanctions imposed on Iran can be dealt with in such a way that they can be damaging to the US and not Iran. Iran has a Central Bank that produces fiat currency out of nothing, this fiat currency known as the ‘Rial’ has a floating exchange rate and is linked to all other Central Banks and fiat currencies world-wide, it is part of the IMF exchange rate system and therefore can be manipulated by foreign exchange markets. The Iranian Rial is primarily reliant like all other fiat currencies on the ‘US Petro Dollar’ i.e the US Federal Reserve Note. The US can and is currently devaluing the Iranian Rial, and all other fiat currency producing Central Banks can do like wise thus improving their own currencies against the Iranian Rial. This is the only economic sanction that the United States can impose on Iran, the EU can do the same and is doing so although the EU as a buyer of Iranian oil can stop buying oil from Iran, but the EU is not going to do that, they can simply continue to buy oil from Iran although much more than they did before due to their improved floating exchange rate. Iran of course as a result of her declining fiat currency value will be able to buy less and less from foreign markets in which she must use the Rial for exchange. Obviously whoever controls the exchange rates can control the economic markets and if they wish to impose sanctions of Iran they can. Iran has made itself open to this economic attack since the Iranian Rial was made a purely fiat currency with a floating exchange rate, and this happened in 2002, as soon as this happened Iran was made vulnerable and became open to economic attack by those who control the world fiat foreign exchanges. As long as Iran is producing a fiat currency from a Central Bank and floating against the US Dollar and Euro and Pound, etc, her country can be taken over economically without a single shot being fired, except maybe during an internal revolution brought about by economic hardships. If Iran wanted to avoid this scenario she easily could, simply close down the Iranian Central Bank fiat factory, and go back to the old Persian multi-metal standard. Iran could set exchange rate of her oil in metals and other commodities, other countries buying oil from Iran would simply exchange metals and commodities for Iranian oil, they will do this, especially India and China who now buy most of Iran’s oil, because they too lose value having to exchange their own currencies first for US Petro Dollars before they buy Iranian oil, they can avoid this damaging exchange mechanism buy simply dealing with Iran directly with metals and commodities for oil. Iran with an inflow of metals into her country should then set up several mints in various locations, coining the metals in copper, zinc, aluminium, silver, gold, for circulation as currency. This would be extremely damaging to the United States as Iran could sever its crippling link to the US Federal Reserve and at the same time all the counties buying oil from Iran would also no longer need to use the US Petro Dollar for their exchanges with Iran, Iran would also attract large amounts of base and precious metals which would be rising in value against the US Dollar, thus Iran could damage the value of the US Dollar and avoid the economic hardships of enforced sanctions.
Iran Silver Rial 1932
