. The (misguided) Iraq war has caused skyrocketing oil prices, in turn causing commodity inflation. This makes Americans particularly poorer and commodity producers richer. The war induced oil price increase from probably around $40 to $120 is the largest transfer of wealth from US to the rest of the world. May be more than the cost of the war itself. As a secondary effect, this devalues US $ that makes Americans feel poorer due to inflation.
Your thesis regarding higher oil prices caused by the Iraq war is lacking numbers. How much production was taken off the market from the war and where would production be if there was no war? The advent of global world oil production peaking much more likely the cause. Supply and demand is not that difficult a concept.
You are correct the the skyrocketing oil prices are the primary cause of the commodity inflation. This is a permanent affair. Though the complete collapse of china or the US economy would mitigate this for some time.
Either way, if China and the US continue on the path with no scaleable alternatives to oil. Their will be mass starvation like the world has never seen, which apparently has already started. Connect the dots…
As misguided as the Iraq war is. It needs to be recognized for what it is. The greatest resource grab in history. It’s easy to see if you calculate the cost of the war verse the oil booty gained. It was a very good score at $100 oil. That puts the value of the heist between 15 and 30 trillion. That can be recirculated through defense contractors and oil companies till it runs out. Besides the control factor of cutting oil off to non-friendly states. Great scam when you think about it. Keep a police state in perpetual war while extracting ever increasing in value resources while at the same time knocking down and rebuilding infrastructure. Predatory disaster capitalism at it’s best. Welcome to the new world.
