This comment was chosen by moderator HS from the post “Ramin Mazaheri interviewed by Sputnik on US breaking JCPOA” . The moderator felt the comment is a take on the breaking of the Iran deal by the US that adds an interesting dimension.

Comment by Cat Pillar

 

The US only looks like a crackpot in this affair because none of the parties involved will say what the actual problem is: Money.

The “Iran Nuclear Deal” had bugger all to do with Iran building nukes. Iran wasn’t building nukes and they all knew it. The deal was all about …. the reward for not building the nukes they weren’t building: i.e. lifting the US sanctions and opening up fantastic investment opportunities.

But Iran trades in any currency except USD. That’s it. No US dollars. Full stop. It’s why the US sanctioned them in the first place. It’s why the negotiations took 9 years – Iran does not trade in US dollars – EVUH. (Those guys know how to hold a grudge.)

So pre-deal, it was barter and rubles with Russia, barter and rupees with India etc. Since the sanctions were lifted it’s …. drum roll…. Euros! Now trade, deals and debt repayments to/with Iran is in Euros.

That’s what Trump is referring to when he whines “They violated the spirit of the deal” and “It’s a very bad deal for the US.” Yes – it is.

It’s a nice deal for Iran (they can trade and prosper.) It’s a nice deal for trading partners (they can trade and invest.) It’s an especially nice deal for the EU (they get trade and invest AND all the dealing is in their currency!) Big big smiles in EU – this is real “money-for-nothing.” Everyone else trading with Iran is buying and selling Euros to do that trading, and because the Euro is their own currency – they don’t have to pay to buy/sell Euros. Nice biiiig savings – cherry on the cake there.

But the US gets squat! Because they don’t trade with Iran (well, some pipsqueak stuff) AND … they’re not getting all the cross-border transaction fees because the trade is not in USD. …. 9% every time dollars are bought or sold – that’s a helluva lot of just-print-more they just aren’t getting!

So what the US is doing is trying to force Iran’s trading partners to pay them in fines the billions they would have been getting had all this wheeling and dealing been going on in USD. (The billions that are going to the EU instead.)

Rhetoric is just noise.
Follow the money!

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