The oil price spike of the 70's had a lot more to do with the failed fiscal/monetary policies of the US than the conspiracy theory that you postulated. The Brentwood global monetary system hinged upon the US being the honest guardian of the global money supply. The combined weight of the domestic "Great Society" social engineering and shooting war in Vietnam, plus the naivette of the politicians then in charge, let to the final "closing of gold window" during Nixon administration, which basicly broke the promise that the US central bank made to foreign central banks regarding exchange US dollar with gold at fixed preferential rate. What followed was general inflation.

As soon as the closing of gold window was announced, supply-side economists predictted immediately that oil price would go sky high. That was long before the Yom Kippur hostilities broke out, and long before the public heard of OPEC. Oil price rose in relation to the US Dollar, but did not rise if you measure its relative pricing to gold. What happened was the debasing of the Dollar by a bunch of politicians who decided that printing money was the way out of domestic malaise, foreign strife, and the political pressure to reduce trade deficit (ie. preserving deomestic jobs). We are at the stage where gold is once again above $300 an ounce, after languishing below $280 for nearly half a decade. That is a history lesson worth remembering; hopefully O'Neil is wiser thirty years later.

To the extent that fuel guzzling SUV's roaming the land, they are just a reserve for consumption cuts should there be a oil shock in the future. The fact that the producing countries have to cooridnate production cuts to maintain stability should be a clue that oil shortage is not a reality.

posted by 141.157.1...

• Gas prices: Citco Reg $1.43 to $1.55 in 7 days!!!, pursang, Wed, 27 Mar 2002 12:39:23
  • $1.34 in Fairfax, sucks. n/m, Rob 85 Turbo, Thu, 28 Mar 2002 17:06:32
  • 77.9 cents CAD per Litre of Premium in Nova Scotia, bluenose, Thu, 28 Mar 2002 10:54:17
  • Try $3.66 a gallon here in Germany for Super Plus..., Eric Burr, Thu, 28 Mar 2002 01:28:43
    • Yeah but we dont have any railroad system here, Rob 85 Turbo, Thu, 28 Mar 2002 17:07:47
      • Have you bought a train ticket here?..., Eric Burr, Thu, 28 Mar 2002 18:56:20
  • You don't want to know the british price. n/m, StanleyB, Wed, 27 Mar 2002 21:55:48
  • yes I'm getting very nervous, Franz '87 9000t, Wed, 27 Mar 2002 20:25:03
  • thats cheap! try aussie fuel costs>>> US$2.02 a gallon!, sab, Wed, 27 Mar 2002 16:32:23
  • Re: Gas prices, compaqted, Wed, 27 Mar 2002 15:01:57
    • Re: since price rise is due to production cutbacks,, Jim, Wed, 27 Mar 2002 23:22:01
      • those who don't remember history are doomed to repeatit, compaqted, Thu, 28 Mar 2002 10:29:40
        • Re: then we'd better remember the history correctly, Jim, Thu, 28 Mar 2002 15:50:05 <-- Viewing This Message
  • Marathon Premimun from $1.53 to $1.30 in 4 days, Dinger, Wed, 27 Mar 2002 13:24:19
    • Re: Phila area gas prices, Steve L, Wed, 27 Mar 2002 14:10:55
      • Gas Prices, AJRitz, Wed, 27 Mar 2002 15:03:29

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