Weekend Economists Enumerate the Wealth of Nations, February 10-12, 2012

[rfranklin]

65. The wealth of the U.S.A.: It's all about oil...

In the 20th century, America repeated the feat. We built oil-fueled cars, power plants, farms and factories; and then exported that technology to client states all over the world. The American dollar, backed by control of both the world's oil and most of the technology that made it useful, became the global currency standard. Powered by oil, we became the richest nation in history — so permeated with the stuff that very few of us can even see the degree to which we're soaking in it, let alone really grasp the fact that almost all of the wealth we have originally flowed out of the ground as crude...

....Even before 9/11, the Bush Administration has always had a sense of panicked desperation about it — a desperation we've usually attributed to conservative revolutionary zeal, religious fanaticism, or free-market fundamentalism. But it's also plausible to interpret some of this as the desperation of people who were tasked with protecting the American empire by keeping the oil taps open and under control at any cost — and who know, deep in their guts, that time is running out.

The Project for a New American Century's stated strategy for maintaining the American superpower in the face of a rising China was to invade and dominate the Middle East, and thus control China's access to oil for the next several decades. That was the intended long-term payoff of the Iraq War: control the oil, and thus control the world. In their minds, if we have to bankrupt the country, tear up the Constitution, and piss off every other country in the world along the way, it's worth it — since they know we're not worth a damn economically or politically without the oil anyway. Sure, the means are ugly; but according to their view of the ends, there's simply no alternative — and no other possible future worth discussing. They don't care if we hate them now, because they're convinced we'll thank them in 20 years for having the statesmanlike foresight to do what had to be done.

http://www.ourfuture.org/blog-entry/americas-energy-empire-100-year-view