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Peak Oil -
The Middle East contains 2/3 of the world’s remaining oil reserves. More importantly, most of the world’s oil will be coming from the ME in 10 years. Powers with land routes to the ME (China, Russia) have an advantage when time comes to seize the remaining supply. The Neo-Cons intent is to build a cold-war military infrastructure in the region, similar to what we had in Europe, to pre-empt any attack through MAD. That is, the cost to seize the resources will far outweigh the gain.
Peak Deficit -
The current accounts deficit is running 6%+ of GDP, with no sign of abating. Due to the 'miracle' of compound interest working both ways, at a 6%+ GDP yearly current accounts deficit, pretty soon we will have so much accumulated debt the only way out will be default. At that point, so much for the dollar. In other words, the US will not be able to afford foreign oil (60%+ of current consumption) much longer.
In addition, one of our major rivals for these resources, the Communist Chinese, are using the dollars gained from the massive trade imbalance to buy US Federal debt (the money has to flow back somehow), and purchase oil reserves, most recently from Iran, Venezuela and currently negotiating with Canada. The GOP and outsourcing CEO’s have therefore provided our rivals the tools to wage economic warfare against us.
The petro-dollar issue is just one more weapon they can use against us. If we were still a vibrant, producing economy, the switch from petro-dollars would not be nearly as severe a blow to the US economy as it will now be due to the GOP selling the US down the river for short-term stock gains by the rich.
So, the only conclusion that I can draw is that the GOP has given up on market economics, and have decided to seize the ME reserves before our military power wanes as a result of economic collapse.
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