Finances Of World Depend On Oil

It might not be true to say that the world’s currencies drift along in a never-never land because they are not linked to any particular underlying commodity. In fact, the world’s underlying “commodity” is the US dollar, in which all finance worth the name is conducted. In turn that key currency’s value is very much influenced by its ability to manage its own affairs in relation to the oil price. What is the Iraq war about other than protecting the dollar by preventing the ravaging of the oilfields in that country? So we have an unhealthy situation where the finance of the world is suspended over a barrel of oil, by perception if not literally.

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