20 April 2005

Iraq: not about the oil. Well, mostly not.

It's an old article, but well worth reading. Fascinating (in the gut-tightening sense) even if it isn't 100% accurate.

"In this power game, least understood is the role of preserving the dollar as the world reserve currency, as a major driving factor contributing to Washington's power calculus over Iraq in the past months. American domination in the world ultimately rests on two pillars -- its overwhelming military superiority, especially on the seas; and its control of world economic flows through the role of the dollar as the world's reserve currency. More and more it is clear that the Iraq war was more about preserving the second pillar -- the dollar role -- than the first, the military. In the dollar role, oil is a strategic factor."


Not being a trained economist, I can only speculate as to the accuracy of some of the claims made here, yet it "feels" right. Regardless of affected mannerisms, Bush isn't stupid, and certainly his neocon cabal isn't that dumb either (Ashcroft aside). There had to be something important about Iraq to risk so much in open war against it. And does anyone remember what was going on in the news before 9-11? China. The political news stress was "all China all the time." I recall thinking it looked like Bush wanted us to go to war against China! * I started poking around, and uncovered lots of information that US economists were scared that China was going to diversify from its purchases of US Treasury bonds - IOW, stop supporting the dollar-based global economic system - which would have a similar net effect as mentioned in the article above.

Given the apparently precarious position of the US dollar in the world economy, it seems nearly inevitable that there will be a collapse at some point. And what will we, the hubristic possessors of the greatest military in the world, do then? (for a hint, read historic documents on the Weimar Republic's economic woes) Of course, one thing clearly implied in the article but not said openly is that the global economic system once "based" in gold is now based in OIL. And the oil is running out. If you have an economy based in oil, and the oil is running out, and the rest of the world is trying to move away from that economy..... (to be continued)

* All the discussion of Pearl Harbor and the hypercelebration of our WWII victories was also useful for setting an appropriate national tenor for "responding" to 9/11 with a war. Want to real-world scare yourself with a fictional techno-thriller? Read Tom Clancy's "Red Storm Rising." While mentally replacing the Soviets with us.


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