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Sunday, May 17, 2009

War is not necessary to secure oil.

If the American economy requires oil, there is no need to use military measures to secure it. Countries with oil have every incentive to trade with us. Hostile countries are no exception. Ivan Eland has pointed out that even if Saddam Hussein had taken over the United Arab Emirates, Kuwait, and Saudi Arabia,

his control over a greater market share of world-wide oil production and reserves would have allowed him to drive oil prices higher by cutting production somewhat. Yet, according to [economist David] Henderson, those price increases would have amounted to less than one-half of 1 percent of U.S. Gross National Product. (Ivan Eland, The Emperor Has No Clothes [Independent Institute 2004, p. 249.])

The American foreign-policy elite has indeed sought control of foreign resources, but this reflects its own quest for power and profit rather than an attempt to fulfill the demands of the rapacious consumer.

-- from " The End of American Exceptionalism by David Gordon (5/14/2009) at http://mises.org/story/3447.


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