Thursday, June 15, 2006

Peak Oil & Dollar hegemony

Here's a piece on the Safehaven site site that caught my attention

If you are well read on 'Peak Oil', you need to persevere beyond the author's opening gambit about the strangeness of oil having being found/exploited overwhelmingly in the Northern hemisphere (about half the article actually). He proposes this as evidence that PO is a deliberate ploy to hike the oil price by TPTB, as part and parcel of the continued exponential expansion of the dollar monetary base that is required to prevent its collapse.

But his main point is not about PO at all. Get beyond that and it's worth it because the guy is an economist and it is a solid illustration of the overwhelming vulnerability of the present world fiat currency system based on the Dollar, and the 11th hour nature of its evolution to date. His PO proposal is in fact largely irrelevant to his main thesis that dramatic increases in fundamental resource (and other asset) prices are REQUIRED to prevent the present dollar fiat system from collapsing. It is therefore logical enough for an 'economist' to suspect TPTB of a PO conspiracy to raise the oil price.

To summarise; were it not for the clear (in my view) evidence of PO as an inescapable fact, TPTB would have to invent it to prevent the economic collapse that PO is likely to precipitate before too long anyway.

Oh the delicious irony of it all. We live in interesting times indeed.

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