Thursday, August 11, 2005

the end of the dollar?

so iran's on this big nuclear power kick. and quite possibly could manufacture nuclear weapons. do i think they're going to bomb us and start WWIII? no. but I do think that they're going to start trading oil in Euros and crush our currency into smithereens, then we'll bomb them and start WWIII...

If you didn't know--all oil in the middle east is traded in dollars. You want some OPEC oil? You have to buy dollars first. That's what keeps our economy alive. This deal was put in place after the OPEC "embargo" of 1973. this embargo was actually purposeful production cuts in attempt to push back the peak of production and stave off depletion for a while. but anyway, after 1973, anyone wishing to buy oil from OPEC had to do so in dollars. and it has remained that way until this day. developing 3rd world nations in need of energy had to invest in huge amounts of dollars (enter the IMF and World Bank) in order to "turn the lights on."

Well, this is all likely coming to an end... Expect to hear some talk of Iran's desire to trade oil in Euros--since that currency actually has a future. Big bad America doesn't like it? Well we don't like YOU, big bad America! And we've got nukes now, which we know neither of us would ever use because we "value human life," but don't test us... At this point one of two things happen--Iran busts up the Petrodollar, china and japan remove all of their investments in the dollar and invest in the Euro, and our currency devalues itself so fast we have to fill a suitcase with greenbacks just to buy some groceries... gasoline prices will be the least of our worries... OR iran threatens to bust up the petrodollar and we invade them--which we're poised to do anyway.

Not to mention the utter hypocricy of the US telling Iran not to pursue nuclear energy in the wake of the poor excuse for an energy bill that was just passed here.

Things are coming to a head. something's got to give.

(the above statements are pure conjecture based on very little knowledge of world affairs.)


Post a Comment

<< Home