Here's an interesting theory for you...from the oil drum
[new] westexas on Sat Apr 08 at 11:39 AM EST
I have had a theory for a couple of years, which I have posted before. I am posting it again because of the money supply issue.
My theory: Bush Cheney were aware of Peak Oil from day one. Therefore, they knew that the federal debt will never be repaid and they knew that the remaining oil reserves in the Middle East were the biggest remaining prize on earth. Ideally, in a Peak Oil world, one would want to "own" Iraq, Iran and Saudi Arabia.
So, if you know that the federal debt will never be repaid, why not max out the federal credit card by increasing federal spending beyond belief?
And, if you want to "own" Iraq, Iran and Saudi Arabia, one would want to move a large permanent military force into the Middle East.
The third part of my theory was that Buch/Cheney would, in effect, renege on the US debt (perhaps by inflating our way out). This would have the added benefit of hurting world trade, which will contract anyway, and of hurting competitors for the remaining oil supplies, especially China.
We know that oil and precious metals are going up and we know that the Fed has somewhat mysteriously decided to quit publishing the M3 data--just as it started hitting sky high levels. There are also some rumors floating around about massive increases in the money supply. You will recall that our current Fed chief talked about dropping "hundred dollar bills from helicopters."
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