China was barred by the U.S. from giving U.S. dollars for oil to Iran. This is a way around this. The bigger implications behind this story are that we may be seeing the beginning of oil being sold for something other than dollars. The more this progresses the more the dollar becomes vulnerable to not being used in the purchase of oil.
That may mean more dollars in circulation than needed; not good for a fiat currency in a world where only dollars are used to purchase oil.
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even with this little iran/china partnership, the majority of oil will be traded for dollars. the question is: where do the dollars that would have been used for oil purchase go?
good question…but this article is also a direction the world may take given the new Iranian Oil Bourse Exchange…..