Iran+NipponOil will kamikaze attack the dollar

[Buraku]

[Typhoon]

[2triky]

Reports from Iran about the US and/or Japan are probably as plausible as reports from the US about Iran.

Indeed. Moreover, I don't think Iran has the economic clout to manipulate currency values like other countries such as China or EU countries.

[Buraku]

I'm not a defender of Bush, personally I think he's made a fool out of the GOP and made a balls of Iraq
and yes I agree Iran has little credibility on most matters, how can you trust a nation that fills their airwaves with propaganda, takes US embassy workers hostage or asks for Israel to be wiped off the map.

However oil concerns are real, and fossil fuels are getting dryer. Peak Oil is going to happen maybe in ten years and some political alarmists think we may have already reached 'PeakOil'.
Now take Japan, despite a few loons like Tokyo governor Blinky I don't think Japan would ever directly and intentionally hurt the US - Japan is a friend of the US and will continue to be.

Now a powerful economy like Japan needs fuel but with almost zero natural resources, ever since the 70s oil crisis Japan has still been in a bid of a muddle about how to secure the minerals and fuels needed to keep the economy moving. If Japan is forced to pay of oil in Yen or Euros they will do it. Remember right before the 2003 invasion, Emperor Saddam Hussein was trading in EUROs, Energy analysts have already predicted that Petrodollar warfare could become a serious security concern.

[Buraku]

America's elder statesman of finance, Alan Greenspan, has shaken the White House by declaring that the prime motive for the war in Iraq was OIL

http://www.foxnews.com/story/0,2933,296938,00.html

Mr Greenspan's book The Age of Turbulence: Adventures in a New World also criticises President George Bush for not responsibly handling the nation's spending and racking up big budget deficits.
The 81-year-old, a lifelong Republican, claims Mr Bush has abandoned fiscal discipline and put politics ahead of economics.
http://www.theage.com.au/news/world/greenspans-shock-oil-behind-iraq-invasion/2007/09/16/1189881340375.html



Greenspan memoir links Iraq war to US thirst for oil

http://afp.google.com/article/ALeqM5iFmgaccMh9xWKZfofR-BGfRT1J8g

World rubber prices closed firmer yesterday in line with the rally in crude oil price, which hit above US$81 a barrel on the New York Mercantile Exchange
The Rubber Trade Association of Japan reported that Japan's rubber stockpile was declining, with inventories at warehouses having dropped to 9,819 tonnes as at Aug 31, the lowest since Nov 10, 2006.

[Buraku]

JGBs climb on Iran missile report, bargain hunters

* Iran report cuts Nikkei gains, pushes up JGBs
* Bargain hunters provide support
* May machinery orders beat forecasts, cause earlier losses
By Satomi Noguchi
TOKYO, July 9 (Reuters) - Japanese government bonds rose on Wednesday, erasing earlier losses as a report that Iran had test-fired missiles prompted investors to shift their funds from stocks to safe-haven debt.
JGBs extended the previous day's sharp gains as bargain hunting from investors emerged after bonds were pushed lower earlier in the session by Japanese data showing machinery orders in May largely exceeded expectations.
Iranian state media reported that the country test-fired nine missiles, including one which it had previously said could reach as far as Israel and U.S. bases in the region, raising fears about a jump in oil prices on heightened political tension.
"After the report on the Iran missiles, the Nikkei trimmed gains and that pushed JGB futures up," said Tomoyuki Arima, a senior JGB dealer at Tokai Tokyo Securities.
"But that price action looks to be coming from speculation as oil prices are pretty much unaffected by the report," added Arima.
September 10-year futures rose 0.17 point to 135.75 erasing earlier losses to 135.05 and extending the previous day's full point rally. They trimmed some gains in the evening session on profit-taking, traders said.
The benchmark 10-year yield was flat at 1.615 percent, after dipping as low as 1.610 percent from the day's high of 1.650 percent.
The five-year yield fell 1.5 basis points to 1.190 percent, off the earlier high of 1.230 percent as investors scooped up paper, comforted by the surprisingly solid demand at Tuesday's auction for the maturity.
The Nikkei stock average rose 0.15 percent but pared earlier gains made in response to the previous day's rise on Wall Street as the Federal Reserve hinted it would keep a lifeline open for banks.
May machinery orders in Japan jumped 10.4 percent from the previous month, much higher than the forecast for a 1.1 percent rise.
But orders in April and May, if averaged, are still down relative to those from the January-March quarter, while higher raw material costs are likely to further squeeze profit margins going forward, economists say.
"Bargain hunting is likely to gradually gain the upper hand, as prospects of an economic slowdown and financial sector concerns are prevailing market themes," said Eiji Dohke, chief fixed-income strategist at UBS Securities.
Superlong bonds stayed firm after drawing support from longer-dated U.S. Treasuries, which rose the previous day as falling oil prices soothed worries over inflation.
U.S. crude oil rose a dollar over $137 per barrel on news about Iran's missile test, rebounding from Tuesday's steep fall below $136 from last week's record peak of $145.85.
The 20-year JGB yield fell a basis point to 2.160 percent while the 30-year yield dropped 1.5 basis points to 2.355 percent. (Additional reporting by Shinichi Saoshiro)