Petrodollars
How money is created, where it goes
The New York Times says the stash in oil exporting countries like Saudi Arabia and Venezuela is enormous…
This analysis is the kicker:
As more of the oil money is spent, the American economy may be left in a precarious position. Maurice Obstfeld, a professor of economics at the University of California, Berkeley, said, “If oil exporters lower their current account surplus, we will have to reduce our current account deficit.”
Odd to think that a result of Bush’s Jacksonian, Boltonist, anti-cooperative foreign policy is that America is at the mercy of financial decisions made in Saudi Arabia and Venezuela.
October 17th, 2005 at 22:20
At least the money Hugo Chavez is pulling in from selling us his oil is being put to good use: one million more people can read now due to the literacy programs started, clinics built in many villages, and lower priced food for the poor.
Indirectly, we are helping the poor Venezuelans — until president Chavez decides he wants the Chinese to foot the bill (selling oil to them instead of us).
October 18th, 2005 at 05:35
Yes, quite. See my previous post on Alexander Cockburn, and especially Cockburn’s column on Counterpunch this past weekend: “gas guzzling these days can be a revolutionary duty, like puffing Montecristo #4 Cuban cigars back in the 60s as a way of doing one’s bit for the Cuban revolution.” I end up rather agreeing with him.