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Posted on Sustainabilitank.info on August 19th, 2008
by Pincas Jawetz (PJ@SustainabiliTank.com)

The article in the New York Sun is based on a posting by Brad Setser on a Council of Foreign Relations (New York City) site that shows that since the 4th quarter of 2004 the autocracies’ wealth increases drastically, and the wealth of the liberal democracies that are dependent on oil imports has actually decreased in the first half of 2008 by 40% compared to the 4th quarter of 2007. The correlation with the price of oil is obvious - so is obvious the future lack of political independence of a country that depends on borrowing money from the rich autocracies that buy into its paper debt. Losing the will to react against its lenders will predictably turn the US into a paper tiger. Is that why those countries continue to invest in its paper debt? I have never seen a better justification for the need of the US to go for an Apollo-type project to beat its addiction on oil imports. The US independence is depending on this!

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