tsujigiri

The editorial comments of Chris and James, covering the news, science, religion, politics and culture.

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Monday, March 17, 2003

An angle I hadn't considered: The impending skirmish in Iraq is really to keep the dollar the international standard in oil transactions. This article, an editorial in the UCSD Guardian, of all places, sums it up nicely. The takeover of Iraq would not just allow the U.S. to control Iraq's oil resources, but to keep the U.S. economy from collapsing, as the popularity of rival currencies, like the Euro, is growing among OPEC nations. From the article:

A dollar is worth a dollar largely because it is the international standard in oil transactions. If OPEC nations were to suddenly switch to the euro and divest themselves of U.S. dollars, the sudden glut of dollars on the world market would force the dollar to drop even further and quicker than it already has. The quick inflation of the dollar would cause even more foreign investors to abandon the U.S. stock markets and dollar-denominated assets, simply to retain what value remains. At home, a run on the banks could follow. Eventually, current U.S. deficits would be unserviceable in devalued dollars and the nation would go into default. The nationwide social upheaval resulting from a currency collapse would pose a far greater problem for the government than trying to clean up a bombed U.S. city or military base. By conquering Iraq and installing a friendly regime, the United States will be able to guarantee that Iraqi oil exports are again dollar-denominated. A military victory would also communicate to OPEC the possible consequences of a switch to the euro. Any switch would be made at the other nation's peril.

So far, this explanation and the one involving a direct effort to bring about Armageddon are the two most plausible reasons Bush and Co are going to war. They're BOTH fantastic reasons, so what are we waiting for?!?

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