----- Original Message ----- From: "Doug Henwood" <dhenwood at panix.com>
> But it's not just about price - it's about supply (flowing freely in
> normal times, without threat of embargo - with the potential to shut
> it off should the U.S. want to pressure its allies) and the use of
> the proceeds (invested in New York and London and not domestic
> economic development).
>
> Doug
==================
This is where I think the Bushies are in a heap of trouble. The Saudi's can't do the petro$ recycling program they've been doing anymore; falling per capita incomes and unemployment levels in SA that occur at the same rate they fell/rose during the '90's spells total disaster. So they need to get out from their own version of 'the Dutch disease.' So controlling Iraqi oil revenues, at least temporarily, would be a stopgap measure until they come up with some longer term approach to capital flows from the region while giving the Saudi's some space to fix their domestic economy while keeping the princely protection rackets in power. Just a guess.
Ian