So what was Libya all about?  Some say that it was about oppression, some say it was about Gaddafi being a bad lad and others say it was just the Western powers sticking their noses in where it wasn’t needed.

But what about oil?  Did you know that Gaddafi was about to sell his oil for gold dinars and not the US Dollar?  Do you think he’d have been invaded if his chief export was brocolli?  A straight swap of Oil for Gold would mean that the US dollar would no longer be needed for international trade.  And if the world didn’t notice then it would just fade away because the dollar, as a currency, would be dumped.

So here’s the news and you got it here first.  Reuters have published an article stating that India is to settle it’s 7.7 billion pound trade account with Iran in mainly Rupees and partly, the Japanese Yen.  Two things come out of this – the dumping of the dollar (just like Libya) and that Rupees and Yen are good, convertible currency – they’re better for trade than the US dollar.

India is the second biggest importer of Iranian oil after China – about 12% of it’s capacity or 400,000 barrels per day.  Russia is in there somewhere too, along with Japan. They are now using a system called “Direct Currency Trade” and to show you the size of this business, India and Japan have just signed a 9.7 billion pound currency swap.  That’s a lot of business.

This is ‘Bi-lateral Trade’ in that it is lawful business between two countries without the involvement of a third party or currency.  So the US and it’s currency is now redundant – no longer needed.  These countries trust each other more than they do the US and want to work with each other without US involvement.  It’s nothing new, does the term ‘spice route’ ring any bells?  Or the ‘silk road’?  India, Pakistan, Iran.

Lieutenant Commander of the Iranian Army’s Self-Sufficiency Jihad (really, that’s what they’re called), Rear Admiral Farhad Amiri, has hailed the Iranian submarines as “the best electronic diesel vessels in the world, noiseless and able to easily evade detection as they are equipped with sonar-evading technology”.  One thing Iranians are not is stupid.

Ghadir submarines are supplied from North Korea in kit form and can fire missiles and torpedoes simultaneously because they are equipped with cutting edge military and technological equipment.  They are fitted with ‘HOOT’ super cavitating rocket torpedoes, allegedly reverse-engineered from the Russian VA-111 Shkval torpedo which the US can do nothing about, but whatever.

So what to watch out for.  Well if the US wants to stop this trade then it can do two things.  Trade embargos and sanctions can be issued from the White House but whose going to listen?  China and India will probably stick two fingers up.  China, Iran’s biggest crude customer, has already rejected the U.S. sanctions as ‘overstepping the mark’.

The second is ‘by force’ so if you’ve not seen what’s happening in the Straits of Hormuz and the Persian Gulf then get up to date with the news.  The Straits are to the Persian Gulf what Gibraltar is to the Mediterranean but there’s Iran on one side and Oman on the other.  The UK has sent a destroyer to the region in an effort to keep the straits open and the US has sent a few ships too.  That US story at the Al Jazeera site is well worth reading.  It’ll be a re-run of Libya, Afghanistan, Iraq, Iraq again…

What does this mean to you?  From a bullion point of view, if it kicks off in the Gulf then Iran will just stop pumping oil.  The fight between the navies is a secondary issue but it will give the US enough reasons to invade Iran.  Did you know that by their constitution, the US cannot start a war?  Hence their ‘pre-emptive’ strikes…

When the dollar fails, and currencies are devalued, barter begins.  It’s happening right now between these countries so you’ve either got something of value to trade or you haven’t.  Pieces of paper are not going to be accepted as ‘good for trade’ so if you’re going hungry then your situation is going to get worse, day by day.

And what this is really going to mean to you is that the price of petrol is going to increase by 15 – 50 pence per litre immediately.  As soon as it happens, it’s going to happen.  There’ll be que’s at the pumps if they’ve got it at all.  Have you ever stopped and thought about just how dependent you are on oil?  You won’t get to work without it.

What’s the solution.  Well, depending on your pocket, you could start with Gold and Silver coins.  They are valuable, portable and good for trade.  Your pension statement isn’t.

Did you know that according to Google, there are an estimated 62,218,761 people in the UK?  And that the Bank of England has an estimated 310.3 tonnes of gold on reserve.  That’s 0.16 of a troy ounce per person – don’t worry, i’ll do the Maths.  The question is, how much have you got in reserve?  Better get some then, eh?

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