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It's the Economy, Stupid

This is a really good paper, which I found in a roundabout fashion through Crooks and Liars, on Iran, Iraq and a possible reason why Bush invaded - not for oil (although it is to his advantage to control the Iraqi oilfield) but because doing so prevented a destablization of the U.S. dollar. The acid test will be the next few weeks - the proposed Iranian Oil Bourse is supposed to open March 20th, so if this paper is true, Bush should act before then.

Posted by Dan on Sunday, March 05, 2006 at 3:37 PM |

Well, it hurts us on an export level - a higher Canadian Dollar in relation to the US dollar means it no longer is as economically viable for Americans to buy our products. On the other hand, a large part of our booming economy is due to the rising price of oil, so this could be advantageous to us, in that other countries can now buy our Oil in other currencies. I'll admit that economic theory isn't my strong suit.

Posted by Blogger Dan | Sun Mar 05, 08:58:00 PM  

Of course, the largest part of our oil industry exports to the United States, which will buy, Bourse or no Bourse, in devalued US dollars.

I would expect a trade retaliation of ungodly proportions if we tried to force things otherwise.

Excellent article, Dan, thanks.

Posted by Blogger kevvyd | Sun Mar 05, 10:38:00 PM  

Good point, Kev, I'd forgotten that.

Posted by Blogger Dan | Mon Mar 06, 02:27:00 AM  

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