33095, RE: hopefully the stock market will bounce back|
Posted by moot_point, Tue Mar-29-05 05:35 PM
>I don't know exactly how that's gonna work, someone else is
>going to have to fill you in. On one hand, it's not like
>America is going to control the terrirtory, Iraq is going to
>be and independent country. On the other hand, you're
>probably going to have American oil companies over there. I'm
>not sure how that translates into cheaper oil prices for us
>though, maybe we're going to get some kind of "special deal"
>in exchange for liberating the country.
>But i'm really not clear as to how overthrowing Saddam is
>going to translate into cheaper oil prices, maybe someone can
>help me out.
Firstly, the price of oil has been so high for the past few years as result of the global shortage of supply - thanks to the Iraq war. Once the oilfields in Iraq anre controlled and safe for distribution, the global supply will again increase. Increased supply reduces price; its a economic principle.
Secondly, there is a consensus in the UK that the issue with Iraq related to the explicit appropriation of oil. I have not always subsribed to this. I think the reasons for war have been several, and US and UK governments could not allow themselves to be seen as entering Iraq and simply forcing the oil barons to hand over their fields. However, governments and business owners make great bedfellows. Look at the Former Soviet Union. Those barons who have pandered to Putin (such as Abravomich) have been allowed to amass obscene fortunes; whereas those who have not have been investigated, indicted etc. Now that the US and UK have imposed democracy upon Iraq (with what many consider a puppet government), this country is ostensibly a political friend of the west. In the light of this you can see how many 'special deals' may arise between the new Iraq government, the oilfield owners of the country and the west..