Not surprisingly, I saw this article this morning: here. The US has put banking sanctions on Iran, except those transactions within the scope of the energy market. When are people going to figure it out? Sanctions and prohibition just don’t work. All it does is push banned activities onto the black market, which usually end up hurting the lowest classes the most. Ask anybody about how successful the sanctions have been on Cuba, or how effective sanctions were to topple Sadaam Hussein.
This serves as even more proof behind what I saying the other day: that the US wants total control over the world banking system and is merely using the FACTA as a means to get control. Remember how us overseas Americans or ex-Americans were the whole basis of justification for this law– to discover if we have “hidden” assets? Personally, I feel very insignificant in the world, but I was (all of us) were used to justify this monstrosity. Nowadays, foreign financial institutions, and especially governments, shouldn’t be worried if they have an American with a bank account; they should be worried about turning over their sovereignty on a silver platter to the US.
I am personally not sure what to think about this move in terms of its rightness. I do believe that Iran is a big threat and will become bigger if it gets nukes.
I am more certain of the consequences. I agree with geeeez that it won’t work. Indeed, you would have to place sanctions on Russia and China who are trading partners with Iran, and who said they would come to Iran’s defense if the there is military action there.
I think it will have the following effects:
(1) the acceleration of the irrelevance of the United States in controlling world markets as countries seek to find ways of trading which circumvent the US dominated commodity markets. Most trade today uses the US dollar as the medium of exchange. China, Brazil and many other countries have been trying to circumvent the dollar and set up alternative markets: this will speed up the process.
(2) The price of oil may rapidly increase, as the US dollar become irrelevant, it will become clear that there are far too many of them in circulation. We could be looking at $200+ oil in 2012. Now we have an entire nation shunned from the US market. The other nations will call the US’s bluff; it is one thing to be a paper tiger, but once the world realizes that’s what you are, then you lose respect rapidly.