Foreign Correspondence

[Amaunet]

The old adage is true, the only way for world to bring down demand is to have a global recession.


China’s growing need for oil might make it a little more difficult but a recession is still easily done.

If I were a foreign producer staring at Bush’s global domination creed I would use the price of oil as a defense mechanism.

No serious attempt has been made to find an alternative form of energy because the United States requires the role of fiat currency for global oil transactions and an important way in which Bush intends to realize his quest for hegemony is through the control of pipelines and oil.

I believe that if we had a viable alternate form of energy it would be much more difficult for the United States to maintain its position as that of sole superpower albeit I think China already shares the stage.

The reality is that the strength of the U.S. dollar since 1945 rests on it being the international reserve currency. Thus it assumes the role of fiat currency for global oil transactions (ie. `petro-dollar'). The U.S. prints hundreds of billions of these fiat petro-dollars, which are then used by nation states to purchase oil/energy from OPEC producers (except Iraq, to some degree Venezuela, and perhaps Iran in the near future). These petro-dollars are then re-cycled from OPEC back into the U.S. via Treasury Bills or other dollar-denominated assets such as U.S. stocks, real estate, etc. In essence, global oil consumption provides a subsidy to the U.S. economy. Hence, the Europeans created the euro to compete with the dollar as an alternative international reserve currency. Obviously the E.U. would like oil priced in euros as well.
#msg-994080

Note: Iranian Oil Minister Bijan Namdar Zanganeh said Iran deserves “logical” right to take up the post of the upcoming OPEC’S secretary general and they are apt to influence an OPEC switch to the euro.
#msg-4061945

Stick around Max, what if Iran does become OPEC’s secretary general and China gets its turn as UN secretary-general in two years?

Was he in Camelot? vbg