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The historical crusades against Muslim lands, the colonization of Spain by the Muslim Moors and India by the British were all driven by economic interests, despite the advertised reasons that were used to mobilize their armies at the time. In my opinion, the invasion of Iraq was not about spreading democracy or weapons of mass destruction, it was about the oil.
Hotelling’s theory, or Hotelling’s rule, posits that owners of non-renewable resources will only produce a supply of their basic commodity if it can yield more than available financial instruments, specifically U.S. Treasury or other similar interest-bearing securities. This theory assumes that markets are efficient and that the owners of the non-renewable resources are motivated by profit. Hotelling’s theory is used by economists to attempt to predict the price of oil and other nonrenewable resources, based on prevailing interest rates. Hotelling’s rule was named after American statistician Harold Hotelling.
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