When we ask ourselves about Iraq, our economy, and an indifference of our government towards the people, do we look at how the economies of scale have altered and how this affects our place in the world ?
Brief History on Oil:
The price per barrel of Oil was $2.00 before the gas crisis in 1974. When the gas crisis occurred, the US military machine was running out of oil and we almost invaded Saudi Arabia to acquire its Aramaco facilities. Consider this compared to what we are doing in Iraq today.
In the later 90's our economy looked good, and dollars were strong for buying Oil. We had no deficit. The Dow index, or Blue Chips, was climbing to 10,000 in 1999, the NASDAQ, or technology index was surging to over 3,000; and people were employed. Filling up the tank was still not a real issue.
Today's Oil and Economy:
As of 9/11/ 2007, the price is $80 dollars per barrel for oil. This would be $40 1998 US dollars. We have come a long way. Fundamentally, The US dollar has lost more than half its value since 1998 in the world markets. The Euro runs about $1.2+ US Dollars today where in 1998 was about 45 cents.
Today, we have over $10 Trillion in National Debt to foreign lenders, and upwards of $50 Trillion nationwide in current exchange rates with the dollar.
Our Dow index is at 13,500+/- and NASDAQ, with a much wider gap, never sees above 2500+. Given the debt, the Blue Chip equity, is over inflated. Given the state of the NASDAQ, our industry is depressed. Given the slide of the dollar, the current debt could double without further borrowing by 2014. You are expected to owe about $50,000 more then at current exchange rates. So what about at tomorrow's exchange rates ?
As our Economy started its slide since 2000, the Euro has become the more attractive currency for Oil purchase, where the US dollar was used before. OPEC, where no member can be considered a friend of the US, prefers Euros. As the dollar slides, the price of Oil will continually rise proportionally more for Americans than for Europeans.
Securing Oil for America
Iraq, in November 2000, decided to use Euros for Oil exports to Europe.This further threatened Oil Import levels to the US. Europe is not empathetic about America's need for 25% of the worlds Oil. Being that Iraq was weak, for the US, it was the prime opportunity for securing our oil needs. But for the UN Security Council, why would they want to go to war with Iraq when being treated to sweet crude, and then obtaining the control of the oil currency in Euros ? It was a win/win for both Europe and Iraq.
To secure oil for America's consumers who are not conservationists and perpetually drive 10 miles over the speed limit, Asia has been more than willing to help finance the Bush Administration's push into Iraq.This I call "imminent domain through manifest destiny". We could also call this America's new Oil. By successfully occupying Iraq, we no longer need to deal totally with OPEC ( Iraq is Pseudo OPEC), not dependent on the Saudi's, and Oil can be traded in American dollars once again.
China has some great options that they can exercise on the US.Economy. Its a win /win for them. If America can occupy the reserves of Iraq , China would be an invested partner. It is a win win further for China, if America fails . In failing, this strengthens China's world presence as a super power at the cost of the United States.
China is also well hedged in having Iran as an alley. Iran is their Oil supplier that deals in Euros, and not American dollars. Further China has given the US enough rope to hang itself as a superpower if they ( China) ever decide to stop funding our debt. So we should ask our selves , what is national security ?
Our economic indicators are more serious than in 1929. Then the Stock Market crashed, and we had bread lines. In fact, thanks to the current Presidential Administration, if we were to leave Iraq, we could soon run out of gas.
The Bush Administration's solution is the New World Order with their stake in the North American Union. This is a matter of digging a hole ,deeper and deeper. Except in this case it is at the cost of our national security as a nation.