218. PROF. HAMILTON SKEWERS IRAN OIL BOURSE HYPE
"Petrodollar hegemony" is a perennial source of hype in the peak oil community. Briefly, the idea is that oil purchases in the world today are denominated in dollars, and any move to sell oil in other currencies would cause the collapse of the U.S. economy. This is often cited as the "real" reason why the U.S. invaded Iraq (Saddam Hussein had begun to sell Iraqi oil for euros), and the reason why the U.S. will be forced to attack Iran before they open their oil bourse, which is scheduled to begin selling oil in euros this spring.
Econbrowser is an economics site written by James D. Hamilton (Professor of Economics at the University of California, San Diego) and Menzie Chinn (Professor of Public Affairs and Economics at the University of Wisconsin, Madison). Econbrowser has a number of interesting, contrarian posts on the subject of peak. Prof. Hamilton's most recent post debunks this "petrodollar" hype:
The internet can be a good source of information about issues that aren't adequately covered by the mainstream media. It can also be a font of considerable kookiness...I'll refer you to the article for details.
-- by JD