Ever wonder why the US kept pushing the idea of 'going green'? Maybe, it's because 'going green' doesn't help line your wallet with green...
As you might know, oil is a natural resource. This resource is thus limited. Now if you understand anything about economics, the more limited something is the more expensive. Who wants Beanie Babies now after the market has been flooded with the damned things.
What is happening now is a classic example of supply and demand. The demand for oil is inversely proportional to the supply of it. As the supply decreases, the demand for oil increases. The nations that hold the most oil will have a firm grasp on the global economy. With all this outsourcing hurting our nation, and gradually lowering our economy this is an enticing idea. The US is always step ahead of things.
Now, I don't want to get into the logistics and the whole debate of why we're in Iraq. But, first I want you to know that Iraq has oil reserves equating to 112 billion barrels of oil--making it the second largest oil reserve in the world(Oil in Iraq--UN Security Council). Now, can it be a MERE coincidence that we invaded a nation acting as a crossroad for major oil pipelines (see below picture):
It would seem like a really smart idea to have 100,000 American soldiers placed in Iraq to make sure no other country seized possession of these oil lines and reserves. I mean what better way than to say we're providing a 'stable government' which opens a door to the US being always implemented in Iraq.
You may ask why we don't move to other resources, that are environmentally friendly. Simple.. They don't make as much money as todays "beanie babies", oil.
So as long as the world is based off the control of a limited resource, we will continue to imperialize nations.
What do you think?
While this blog shows the proven example of supply and demand, it fails to show the other example, of price and supply. High oil prices are good in this context because the higher the prices are, the more efficiently comapnies will use it, and the less oil that will be actually used. Preserving oil through moderately high prices is better than the alternative, to let low oil prices deplete our supply of oil until the supply is actually so low that it will create prices exponentially higher than they are now. Also, high oil prices are key to global stability. Russia and Venezuela are heavily dependent on the oil sectors of the economy, so if there were a sudden decrease in the price, nothing short of a global war would result.
exactly.
these high prices are needed for global stability because every nation today is interrelated.
The global war that you say would result is from the fact that oil is a limited resource. I'm not saying we need lower oil prices, oil is more important then the atmosphere. The way hugo is acting now about not giving oil to the US, has already potentially created a threat to a global war.
+mspin
I like the way you express your ideas and concerns. You seem very intellectual.
Good thoughts