That is quite amusing. Well, citing Iran's movement from the dollar as the main reason oil's dollar price increases is very amusing. Yet this does not explain why the dollar fell relative to ALL currencies during that period. Reason be, Iran does not produce enough oil to throw the current account structures into disarray. If it was an OPEC move, your argument would carry more weight.

The way to alleviate high oil prices can be achieved in three practices.

1.) Flood the market with greater supply (a natural reaction to higher prices). And yet, this never happened:wtf:

2.) The Fed buys back dollars, raising interest rates thereby raising both global demand for dollars, as well as increasing the $ buying power relative to other currencies. And yet, this never happened:wtf:

3.) Decrease demand by taxing oil into price elasticity. And yet, this never happened :wtf:

The price of oil fell so sharply this last 8 months because global demand for oil fell with it. There was no reason to enact any of the 3 practices because markets do self correct, just not in the fashion we view as desirable. Speculation most definitely sparked the initial rise (fears on global demand), but market equilibria was unable to take place because two of the top three oil producers were in a state of short run fixed supply. The US was unable to drill, and OPEC was unwilling to increase supply, so that market equilibrium was halted. Oil producing firms and nations were all too happy to reap huge profits, while inventories continued to dwindle even in the event of $4.00 gasoline.

And yet, market equilibrium finally won, and self corrected. Although not in the fashion most would like to have seen:rastasmoke:

This is the same propagandist rhetoric used by those who deem it necessary, when explaining the "true" invasion of Iraq. Kinda on par with those claiming 911 was an inside job.

Hopefully a mod will put this thread where it belongs, in the conspiracy forum....
GoldenBoy812 Reviewed by GoldenBoy812 on . Oil price and Iran war 556. Petro-dollar, the cause of Iran war (7/4/08) People think the nuclear ambition of Iran is the reason for Iran war. That is only right on Israel's part. For US part, it is petro-dollar. US dollar is appointed currency in oil trading. Because the oil trade is a huge business, a large amount of dollar is locked up in that trade. That money is called petro-dollar. Why it is so important to US? Because it acts as a long term none interest loan The prosperous US economy partly was based Rating: 5