The popularity of 2 stroke powered mopeds in America grew in the 1970's because of high gas prices created by the 1973 OPEC oil embargo following the Yom Kippur War, and the 1979 Iranian Revolution to overthrow the Shah, who seized powered after a 1953 CIA operation. Is it just a fluke that the next round of extremely high gas prices in America will be linked to the same players: Israel, America and Iran?
High fuel prices this time will again be a boom for two wheeled transportation. Expect to see more people riding human powered and electric bicycles, and gas and electric powered scooters and motorcycles. How will electric cars fit into the mix? Smaller cars from Asia and even America got a sales boost from high gas prices in the 1970's, so expect electric car sales to go up... But wait a minute, this isn't the 1970's.
How long this growth will last is anyone's guess. Iran's goal in this war is to destroy the petrodollar and America's ability to print money anytime it needs it and avoid fiscal responsibility. What happens if the petrodollar dies and the American government is faced with paying back a 39 trillion dollar debt? I don't know the answer, but it can't be good for any American. If this happens, I think the only transportation you will see will be real cheap.
Here is what Google AI said about the petrodollar:
The transition away from the "petrodollar"—the system where global oil is priced and settled exclusively in U.S. dollars—would fundamentally alter the American economy. While the dollar remains the world's dominant reserve currency, a shift by major producers like
Saudi Arabia
(whose 50-year "petrodollar" agreement reportedly expired in June 2024) toward multiple currencies could trigger the following effects:
1. Reduced Global Demand for Dollars
Currently, every country must hold USD reserves to buy oil. If they can use other currencies (like the Euro, Yuan, or Yen), their need to hold large dollar stockpiles vanishes.
Devaluation: A sudden drop in global demand would weaken the dollar's value relative to other major currencies.
Loss of "Safe Haven" Status: The dollar might lose its reputation as the ultimate stable asset during global crises.
2. Higher Domestic Inflation
A weaker dollar means it takes more units of currency to buy the same amount of foreign goods.
Costlier Imports: Americans would see price spikes for everyday goods, from electronics and pharmaceuticals to food and automobiles.
Fuel Prices: While oil might be cheaper for other countries in their own currencies, the price at the pump for Americans could rise due to the dollar's diminished purchasing power.
3. Increased Borrowing Costs
Historically, oil-exporting nations "recycled" their dollar profits by buying U.S. Treasury bonds, which kept interest rates low.
Higher Interest Rates: If these nations stop buying U.S. debt, the government must offer higher yields (interest) to attract new buyers.
Impact on Consumers: This trickles down to higher rates for mortgages, auto loans, student loans, and credit cards.
4. Erosion of Geopolitical Leverage
The U.S. uses the dollar-centric financial system as a diplomatic tool.
Weakened Sanctions: If countries trade oil in non-dollar systems, they can bypass U.S. financial sanctions, reducing America's ability to exert pressure on adversaries.
Reduced Monetary Sovereignty: The Federal Reserve may be forced to set interest rates based on global currency moves rather than domestic economic needs.
5. Potential Upside for Manufacturing
A weaker dollar makes American-made goods cheaper for foreigners. This could lead to a resurgence in U.S. manufacturing and exports, as domestic products become more competitive globally.This image shows mopeds from the 1970's. These mopeds are unusual because they look like motorcycles. Notice they have pedals.
This image from the 1970's shows people lined up trying to get fuel for their cars
