Nordic Viking
BANNED
- Joined
- Sep 18, 2000
- Messages
- 11,379
I think we should change tactics and do unto Osama what he is trying to do to us. He wants to wreck the U.S. economy with another incident(s) and judging from what happened to the stock market after 9/11 this is not a fantasy goal.
So, how about if we put some John F. Kennedy "Man on the Moon" emphasis on making engines etc. that burn something other than gas and put "petroleum" into the same nostalgia category as black powder? All of Osama's money came from oil, and about 70% of Iran's GNP is from crude oil (they don't even refine gas there).
That would be honorably pulling out the financial rug from under those folks and it seems to me it is pretty hard to conduct international terrorism when you are broke.
It's not about the physical black stuff, it's more about how the black stuff is traded.
Here's a simplified example:
The USA pays Saudi Arabia $1 million for 700,000 barrels of oil.
Saudi Arabia buys weapons from the US for $500,000 (cost price $250,000)
Saudi Arabia buys commodities from the US for $500,000 (cost price $100,000)
Saudi Arabia now has weapons and commodities for $1 million
The USA has oil for $1 million and a $750,000 trade surplus from selling weapons and commodities.
The USA just has to print dollars when they need them. In recession years it prints more and lowers the prices - and in good times, it prints less and raises the prices. If Saudi Arabia decides to trade oil in Euros instead of dollars, then the USA has to trade dollars for Euros first. This would require more collateral.
Saddam had started to demand Euros for his oil (in 2000?) and then he became a "threat" and had to be removed.