OIL PRICE, NOT SUPRIME LOANS, BROKE US CONSUMERS
Some of her analysis has been discussed by others before - but her article is worth taking the time to read. She states that 1.) OPEC made a deliberate attempt to collapse the American economy, and 2.) insinuates that OPEC’s actions were intended to put Obama into the presidency. I’m not aware of any other HNN historian or well-known MSM commentators
, who have said it quite this bluntly.
” Subprime mortgages are a problem but they are not the cause of the collapse. The collapse was caused by an OPEC generated precipitous rise in oil prices. Subprime mortgage buyers could no longer pay their mortgages because too much of their pay check had to go to pay for gasoline. Yes, I know, gas prices have since declined but not before Humpty Dumpty, the American consumer, was broken..”
“Indeed, when Oil rich nations decided to squeeze the American consumer by not only raising oil prices but also by ending or lowering their investment in the American financial markets, they assumed that there were enough new consumers in Asia to replace the American ones. In other word, they assumed that the collapse of the US economy would not lead to the collapse of the global economy, most especially, the Asian one.”
” They were wrong. Instead of proving that the world no longer needed Americans and their dollars, they ended up proving that the US and its consumers were needed more than ever. Just note the post crisis rise in the value of the dollar and the enormous popularity of US treasury bonds. .”
” So where are we now? OPEC got the American president it wanted but at an exorbitant price. To steady the American economy, oil prices will have to stay low and foreign government will have to buy more American debt than ever… “