From Russia & India Report
By MK Bhadrakumar
''However, the co-relation between the geopolitics of the Middle East and the region’s oil resources hasn’t fundamentally changed. Actually, it cannot change. Control of oil and the ability to manipulate oil prices is crucial for the Western financial system. That is to say, we need to constantly factor in a not-so-obvious factor, namely, that the Middle East’s oil is not only consumable, it is also a saleable commodity, and the price at which it is sold becomes terribly important for the Western economies, including the US economy.
Much of the surplus investible capital that oil exports generate in the Persian Gulf (which runs into trillions of dollars) goes into the western banking system. Even if dependence on the Middle East’s oil is diminishing for the West as energy consuming countries, petrodollar recycling will remain for the foreseeable future a matter of incessant interest. The bottom line is that the American dollar is the currency in which the oil trade is conducted and the US will ensure that it remain for as long as possible, no matter what it takes.''
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