Oil at $200 plus a barrel will be the least of America’s problems when the Saudi Monarchy falls. "If something happens in Saudi Arabia it (oil) will go to $200 to $300 (a barrel). I don't expect this for the time being, but who would have expected Tunisia?" ~ Former Saudi oil minister Sheikh Zaki Yamani 4/5/11 The most important question facing the United States today is whether the freedom revolutions sweeping the Middle East will impact the authoritarian regime of Saudi Arabia and the major oil producers surrounding this nation of major oil reserves?
The second question is if the government is overthrown, will the new government continue the practice of pricing oil in depreciating dollars rather than consider new options?The future value of the dollar and the dollar status as the world’s reserve currency depend heavily on the outcome of these two questions. This is why the price of gold could soar and the dollar move dramatically lower when the Saudi Monarchy is overthrown. I fear, the probable American military reaction to this scenario threatens what remains of our republic and may be compared by future historians as comparable in scope to Caesar's march across the Rubicon in Roman history.