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Thursday, September 11, 2014

ISIS Ambition May Kill Petrodollar Hegemony

http://www.planbeconomics.com/2014/09/isis-ambition-may-kill-petrodollar-hegemony/

ISIS is a terrorist group with a solid business plan. They have already taken over oil fields in Northern Iraq so the group is now self-funding. They did that on purpose. According to some, ISIS’s ultimate goal is to take over the oil fields in Saudi Arabia taking back the holy land from a Kingdom they feel sold out to the US. Some analysts believe that when/if ISIS makes a move on Saudi Arabia, they would have tons of support from people throughout the middle east (even greater than the outpouring of support for their battles in Syria and Iraq) who share their views that Saudi Arabia needs to return to a credible, independent Islamic State.
I think if ISIS is allowed to go as far as contemplating an invasion into Saudi Arabia, it will be disastrous for the rest of us. My guess is that oil prices would skyrocket, sending the US into a recession again. This is probably the best of the worst case scenarios.

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