In an exchange with Congressman Ron Paul then Fed Chairman Alan Greenspan in one of his last appearances on Capitol Hill answered that "in times of extreme stress, like war, gold is the only internationally accepted currency."
It appears that the #1 enemy of the US, Iran, is heeding his advice.
According to the Tehran Times from August 18,
Iran imported over 22 tons of gold ingots worth over $855 million in the first four months of the current calendar year (started march 20, 2010).
The amount shows 85,000 percent increase in terms of volume and 81,000 percent rise in terms of value in comparison to the same period previous year, ISNA News Agency reported.
The figure accounts for 4.64 percent of Iran’s total value of imports during the mentioned period.
Turkey, Russia, and the United Arab Emirates were the main exporters of gold to Iran.
Iran imported $1 million worth of gold during the first four months of previous Iranian year.This news comes on the heels of earlier reports that Iran is about to drop both Federal Reserve Notes (FRN) and the Euro in its international dealings, an action taken before by Iraqi dictator Saddam Hussein in 2002. Remember, 4 months later the USA invaded Iraq as such action is designed to undermine the role of FRNs as international reserve currency.
The value of FRNs is mostly derived from the fact that basically all commodities are quoted in the Federal Reserve's currency. I have discussed this in my well-read post Iranian Oil Bourse Could Kill The US Dollar from 2005.
This is a most delicate issue as OPEC rules stipulate that oil only be traded in FRNs. Abandoning this rule is a matter of lively discussions within OPEC, this blogger has heard repeatedly.
Trying to find more information I am led to believe that "Go ogle" seems to have a bias against Iran. A Go ogle news search on "Iran gold imports 2010" comes up with only 2 results whereas a Bing search with the same keywords delivers 8 results among the top 15 hits. As I want information and not bias when perusing the WWW I will have to do double searches on issues inconvenient to the US propaganda machine. Net neutrality seems to have a different meaning than only the download speeds, I angrily note.