Surely low gas prices at the pump would make the electorate happier; and lower oil prices would be helpful for the economy by lowering costs in many industries. And then there are transportation costs, which affect the price of everything.
Ah, but there are other considerations at play.
All the oil in the world is priced in US dollars, or more accurately Federal Reserve Notes. The very existence of the US government hinges on the US dollar remaining the world reserve currency. The US government is so far in debt, that its unfunded liabilities exceed the world GDP.
Gone are the days when people are looking for USD to buy US made goods. Now its mostly to buy crude oil.
The Federal Reserve has more than tripled the monetary base in just the last three years. Those dollars have to go somewhere, and its best they're not used within the United States too much, lest inflation turns hyper. Just look at this graph. The numbers on the left go from 800 billion to 2,800 billion. Do you realize just how many new dollars are being created?
If true, this allows us to rethink a few of the popular myths floating around.
The Federal Reserve has more than tripled the monetary base in just the last three years. Those dollars have to go somewhere, and its best they're not used within the United States too much, lest inflation turns hyper. Just look at this graph. The numbers on the left go from 800 billion to 2,800 billion. Do you realize just how many new dollars are being created?
So here's the simple fact: the more the price of oil rises in terms of US dollars, the more those dollars will be in demand by the whole world. It makes printing money out of thin air a lot more feasible when that money is needed by the whole world to buy oil. That way the whole world is paying for US inflation, not just Americans.
If true, this allows us to rethink a few of the popular myths floating around.
The US government didn't go to war with Iraq to get access to their oil. They did it because Hussein was threatening to switch to using euros. After the invasion of Iraq, oil prices skyrocketed. Kind of casts a shadow of doubt on the whole "we went in there to get the oil" theory.
Similarly, the war in Libya was started because Gaddafi was trying to switch from USD to a new Gold Dinar. Not to save civilians, who have now probably been exposed to Depleted Uranium because of NATO's intervention.






