A Failure of Iran Nuclear Deal Could Upset Global Dollar Hegemony

There’s a lot at stake in the recent Iran nuclear deal.
In this deal, Tehran is looking for sanctions relief.
The West is willing to oblige. That is, if the Iranian leadership relinquishes a large stockpile of enriched uranium, eliminates a large number of centrifuges, limits enrichment capacity, and submits to invasive inspections by the International Atomic Energy Agency.
A failure of this Iran nuclear deal wouldn’t just cause hard feelings.
Nor would a failure necessarily mean Iran is prepared to enrich uranium to weapons-grade potential.
The United States can stomach the hard feelings – those aren’t new to policymakers in Washington. They have colored the relationship since the hostage crisis in 1979.
And as far as the recent Iran nuclear deal unraveling in such a way that it emboldens Tehran to follow North Korea’s lead – rebuffing the IAEA, refusing inspections, abandoning nonproliferation agreements, and building a bomb – the international community still hasn’t produced the kind of airtight, smoking gun case to prove Iran wants to do this.
No, what the United States should fear is the dollar. A breakdown of this Iran nuclear deal could affect the global economy, OIL MARKETS, and U. S. dollar hegemony.

This post was published at Wall Street Examiner by Jim Bach via Money Morning – July 24, 2015.