posted March 14, 2006 08:46            

I would be most grateful for news and information regarding the Iranian oil bourse.

The latest news from the Globe and Mail claims that the bourse, which was due to open in time for Nah Ruz, won't open before midyear at the earliest.

Here is a link:

<a href="http://www.theglobeandmail.com/servlet/story/LAC.20060314.RIRAN14/TPStory/Business">Launch of Iranian oil trading hits wall</a>

There has been a lot of discussion regarding this market. Many Americans and Europeans are of the opinion that the $US is de facto backed by petroleum, since the House of Saud guarantees pricing of petroleum in $US at prices as stable as they can deliver. Others claim that military might and reserve status create demand for $US. I am of the former camp; I do not believe that pure fiat currencies are possible to sustain indefinitely, since the trading value of a pure fiat currency is arbitrary.

Some commentators--of a certain type--claim that it is impossible for Iran to open an oil bourse, because, to paraphrase their hints, it would be impossible for the Iranian government to effectively deal with foreign contract defaulters. This suggests to me the possibility that someone has in mind a way to sabotage it.