Middle East,  Oil,  Predictions

Aspects of the conventional wisdom

  • Oil is the lifeblood of the Global Economy – I remember paying 94 cents a gallon in October of 2001, to $3.05 this summer, to $1.98 today (yes I realize that the price of oil does not track gas exactly, but it’s close). Given that the economy of the oil consuming world has growing mildly (Europe), moderately (the US), and highly (China and India), it would seem that this is simply not true, or if true, not meaningful.
  • The invasion of Iraq will turn the Muslim world against the US. Given that it’s been three and a half years, and all of the opposition is still based in Iraq (with some degree of foreign investment in people and capital) this would seem not to be meaningful.
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