By Peter Koenig
President Putin arrived in Tehran on 1 November for talks with the Ayatollah Khamenei. First, to cement the Nuclear Agreement of 2015 (Vienna), as far as Russia is concerned, thereby sidelining Trump’s attempt at reneging on the agreement. Second, to sign billions worth of tripartite hydrocarbon deals between Russia, Iran and Azerbeijan. And this in ruble. NOT in US dollars, thus, effectively detaching Iran from the dollar hegemony. In other words – helping Iran in de-dollarising her economy – and effectively and drastically contributing to diminishing the dollar’s stance as a world reserve currency. That’s “Resistance Economy” at its best. De-dollarisation is a key principal of the concept of Resistance Economy which also implies economic auto-reliance and trading only with friendly partners.
Iran has full technological, agricultural and intellectual capacity to become self-sufficient. This is a great step towards a new economy – a sea change in economic parameters of freedom and equality. It is in particular a detachment from the uncountable illegal “sanctions” the US is keen on imposing on countries that refuse to follow her dictate. Belonging to another monetary system, trading and investing outside the dollar-dominated western banking system, is like a breath of fresh air.
Other countries may take an example. Venezuela has already done so, by signing hydrocarbon deals with China in Yuan – gold-convertible yuans. Chapeau! – Away from the dollar. For Venezuela, only a few thousand kilometres apart from the border of the great abusive emperor, this is a daring move and a demonstration for Washington of Venezuela’s independence. Venezuela has the support of Russia and China, as both have huge investment and trade agreements in Venezuela, i.e. China in excess of 12 billion dollars of trade agreements alone, one of the largest, if not the largest with any Latin American country.
About the Author
Peter Koenig is an economist and geopolitical analyst. He is also a former World Bank staff and worked extensively around the world in the fields of environment and water resources. He lectures at universities in the US, Europe and South America. He writes regularly for Global Research, ICH, RT, Sputnik, PressTV, The 4th Media, TeleSUR, TruePublica, The Vineyard of The Saker Blog, and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe. He is also a co-author of The World Order and Revolution! – Essays from the Resistance.