But, but, but… it is a barbarous relic that has no intrinsic value…

http://www.bloomberg.com/news/2012-01-22/european-union-likely-to-agree-on-iranian-oil-ban.html

Excerpt emphasis added:

The EU will freeze assets of the Iranian central bank in Europe as well as of eight other entities and ban the trade in gold, precious metals, diamonds and petrochemical products from Iran, the EU said.

And since we are at it, it gives me the opportunity to bring something up that I chose not to comment on a few months ago. But since when does a rag tag rebel army ever think of setting up a central bank in the midst of their attempt to overthrow a sitting government (Libya)?…

We are in the final stretch folks. We’re talking months here…

 

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3 Responses to “But, but, but… it is a barbarous relic that has no intrinsic value…”

  1. TimC Says:

    Guido – they set it up even before the new “national” oil company which is what everyone thinks of as Libya’s primary asset. No – they wanted a new central bank more than that. who ‘they” is/are is a fascinating question.

    Some cynics are saying that the Libyan war was orchestrated from the outside because Gaddafi and family were trying to set up a new gold-backed currency to sell the oil across africa – no more US dollars needed…….

    NB that Iran will take reminibi for oil now…

  2. Zac Gist Says:

    Tell me about the Libyan central bank. Are you saying that it was set up in the midst of the revolution? Implying what…?

    • guidoamm Says:

      This is mid March. You are a rebel army fighting not only the entrenched power but also other rag tag rebels that may want to overthrow the same power for their own ends. You are short of ammo, you are losing combatants every day either to death or injury or simply because they desert you to join their cousin’s army. Your most pressing worry is where you are going to find new combatants or allies and where to find new weapons and ammo. You are winning as many battles as you are losing and the national army threatens to take the upper hand at any moment. Chaos and mayhem reign everywhere, corpses line the roads in and out of the main cities. You don’t even know whom to trust for that matter.

      In those conditions, how can establishing a central bank be a priority? What are the chances that a rebel army may even know what a central bank is?

      http://www.cnbc.com/id/42308613/Libyan_Rebels_Form_Their_Own_Central_Bank

      What does it all imply? I don’t know for certain. But what is clear today is that the West’s monetary system is broken and that the only tools left at the disposal of the monetary authority in order to keep this monetary system alive are illegal if not blatantly aggressive.

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