Comment Re:So confused (Score 1) 376
This.
Everyone is talking about WMDs, but this is the *real* reason. Saddam Hussein announced he was going to open an oil bourse denominated in Euros, which might have hurt the value of the USD. Forcing everyone to buy USD in order to buy oil helps maintain the value of the USD. So, to keep those petrodollars flowing (instead of petroeuros), we invaded, and now Iraq has no choice but to trade its oil in USD.
If the Bush administration had used this as their rationale, no one would have supported it. The average person doesn't know what an oil bourse is and doesn't give a shit what currency oil is traded in, but you can be sure that Dick Cheney knows. Mushroom clouds, on the other hand, are scaaaaaary.
In 2008, Iran opened an oil bourse trading with non-USD. The only reason we haven't invaded Iran over it is because it would damage our relationship with China, which has some leverage over the value of the USD - they hold a large amount of T-bills; they tie their currency to the USD; and, of course, we have a huge trade relationship.
Everyone is talking about WMDs, but this is the *real* reason. Saddam Hussein announced he was going to open an oil bourse denominated in Euros, which might have hurt the value of the USD. Forcing everyone to buy USD in order to buy oil helps maintain the value of the USD. So, to keep those petrodollars flowing (instead of petroeuros), we invaded, and now Iraq has no choice but to trade its oil in USD.
If the Bush administration had used this as their rationale, no one would have supported it. The average person doesn't know what an oil bourse is and doesn't give a shit what currency oil is traded in, but you can be sure that Dick Cheney knows. Mushroom clouds, on the other hand, are scaaaaaary.
In 2008, Iran opened an oil bourse trading with non-USD. The only reason we haven't invaded Iran over it is because it would damage our relationship with China, which has some leverage over the value of the USD - they hold a large amount of T-bills; they tie their currency to the USD; and, of course, we have a huge trade relationship.