GayPatriot

The Internet home for American gay conservatives.

ISIS to U.S.: It’s on

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As noted today on Zero Hedge and The Telegraph, ISIS has released some details of its plans for a gold-backed currency:

What does this mean? As I’ve tried to explain before, the U.S. dollar has been the center of world trade and finance since the end of WW2. Oil, among other things, has been traded in dollars. So other countries need dollars (e.g., before they can buy oil). When they invest in bonds, they also like U.S. Treasury bonds.

All that has let the U.S. get away with running large deficits (both trade deficit and fiscal deficit). Other countries send us real goods in exchange for our paper (or electronic) dollars and Treasury bonds. That is why Walmart and Target have been able to supply cheap goods to Americans, all these years.

ISIS is saying, forget that! ISIS will exclude the dollar from its own financial system, and probably from its dealings with other countries. Remember, if these guys are successful, they will sell (or control) a lot of oil. If successful, they will be wealthy and important. Now they’re saying that their financial system will be founded on precious metals – i.e., NOT on the U.S. dollar or the U.S. Treasury bond. I feel certain that, if they aren’t doing so already, ISIS will also be trading oil only in non-U.S. currencies like the Euro or yen, and/or in gold.

If ISIS succeeds as a country, then, it’s another step in the world’s process of “de-dollarization”, or removing the U.S. dollar as the centerpiece of the world system. Although it is arguably an understandable and well-justified act, it is not a friendly act: ISIS is taking aim at (what they perceive to be) the heart of U.S. prosperity and power in the world.

I expect that the alarm bells in Washington are ringing a bit louder. At a minimum, look for President Obama to escalate his rhetoric against ISIS, with bipartisan support. (Which will mean, in the Democrats’ case, going against their own anti-U.S. / pro-Islam instincts; but they will.)

Democrats Force Gas Prices Up;
Bush Sends Oil Prices Down

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They say a picture is worth a thousand words.   Well, how about comparing these two graphs… is that like 2,000 words?

Check out how the Democrat Congress’ (lack of) action has resulted in a significant spike in USA gas prices since they came to power.  Michelle Malkin did all the work on this one.

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Now let’s observe how President Bush’s lifting of the Presidential Executive Order on offshore drilling has impacted the price of crude oil.  (Chart created at GasBuddy.com)

One goes up, the other goes down.

July 17 (Bloomberg) — Crude oil fell more than $5 a barrel, dropping below $130 for the first time in six weeks, as natural gas futures tumbled and global economic growth slows.

But (not my) Speaker Pelosi’s reaction to Bush’s announcement?

“Once again, the oilman in the White House is echoing the demands of Big Oil.”

“The Bush plan is a hoax. It will neither reduce gas prices nor increase energy independence.”

She is shameless.

I think most Americans know that we need to drill now, drill here, save money.  Well, the Americans that aren’t beholden to Environmental Wackos, Inc.

-Bruce (GayPatriot)