This Iran thing is interesting. On the one hand, it is supposed to hurt Iran terribly because the US is exerting its economic power to punish them. On the other, Iran has gone off the dollar standard and is setting an example for others that could severely hurt the dollar if copied enough. If enough countries stop using the US dollar as an exchange currency, we get a sharp loss in value of US$.

I think it all comes down to a balance of trade question. They sell their oil for gold and buy their imports with gold. It is only a problem if they have more imports than exports. One way, they are accumulating gold, the other way they are losing it. This is the way the world used to work before it beagan being run by central bankers.

Bob