Oil, Economic Warfare and America's Future
Oil has been employed as a potent economic weapon. In 1973 OPEC launched an embargo to punish America, quadrupling oil prices, triggering a significant stock market drop and raising the specter of "stagflation," where prices rose even as the economy stagnated. Something altogether different is at work today, but the impact will prove no less potent. Rather than pursuing higher prices and shortages, today's oil weapon is aimed at collapsing prices through surplus production. Why would Saudi Arabia consider such an effort, knowing it would curtail their own revenues, while simultaneously boosting the economies of oil-dependent nations?