Tuesday, March 11, 2008

$3.50 PER GALLON

I love a good conspiracy theory, from JFK to Roswell. Hell, I even like the Mel Gibson movie about conspiracy theories. Now I'm not sure if this blog constitutes as a conspiracy but while I was reading about our ever increasing gas prices I came to learn a few interesting nuggets. So grab your copy of The Catcher in the Rye and hop aboard Eagle's conspiracy train.



Now a lot of people think we began the war in Iraq to purely control their oil. I don't think this is entirely true. If we wanted to control their oil, why would we go for Iraq. Of all the countries we import oil from Iraq ranks number 8. The top 3 being Canada, Mexico and Venezuela. The runner up prize goes to the house of Saud. So why not go for one of them? Canada has had it coming for a long time with their silly accents, socialized medicine and their not-so-healthy obsession with syrup.

But I've often heard, if you follow the money, you'll find the reason, and here in lies my theory. It was surprising for me to learn that oil is traded between all countries in US Dollars. That means all those countries that are buying oil had to buy US currency first, in turn investing in America. This is great for our economy. Since oil is by far the most important commodity traded internationally, every country has a reserve of US dollars. In fact, the US currency accounts for approximately two thirds of all official exchange reserves, this in turn gives us a strangle hold over all oil trade.

Now, if middle eastern countries began selling their oil in euros or any other currency, countries would start selling their US dollars asap for any price they can get, and thus destroying the US dollar. And in history the only OPEC country to dare to switch and invest in the euro was....you guessed it, Iraq in 2000. No doubt this was a nice go f*ck yourself from Saddam. But it turned out to be a great move looking at the strength of the euro now, and it only cost him his country and his life. Thumbs up!

So maybe, just maybe, Operation Iraqi Freedom is just a way to impose a more dollar friendly government in Iraq and tell the rest of the world "don't even try it." Ironically though, now with this expensive war, we are spending outside of our means, borrowing more money than we should and letting the Federal Reserve print all the money it wants, causing inflation. With the price of the dollar dropping so rapidly who is really gonna want to continue to invest in us, and I wouldn't be surprised if more countries look to stop trading oil in dollars.

Now you might say "Eagle, you're crazy, this is an isolated experience." And you and Billy Joel may be right, I may be crazy. But it might just be a lunatic you're looking for. I find it funny though that the only other country that is talking about not trading in US dollars is Iran and it looks like they are our next target. But it's just a theory right?

3 comments:

Sue said...

well said, you lunatic. Life is just one big conspiracy theory

Don Capone said...

This is a really good conspiracy theory. Let's see what happens in the next 10 months.

As for currencies, I think the world should return to the chicken currency. You want a car? That'll cost you 3,600 chickens. A newspaper? One drumstick. And so forth. A whole chicken will get you a gallon and a half of gas.

Sue said...

Hmm...miss snake has a dog named Weenus too.