Stuff to Ponder on International Events


As I drove to work today, I saw that the gas price at station I pass is now $2.13 per gallon. Yesterday, it was $2.15, the day before, it was $2.17 and $2.19 the day before that. We have all watched with some relief as gas has slipped and tumbled down to prices that we haven't seen in a few years. And while it all seems good from a consumer standpoint, I still reflect on what it all means geo-politically.

Things don't happen for the simplistic and filtered reasons that make it into the evening news...nor do they happen through conspiracy and Bildeberger type groups. No, things happen because of economic forces, pressures and consequences and powers that be react to these forces...sometimes wisely and with a long view but most invariably often stupidly and with the shortest and most idiotic of views rooted in human frailty and imprudence and self-interest unchecked by the free will of others in the socio-economic marketplace of the world.

Now we all know that most of our oil comes from not-so-free-will-driven places in the world....places like the Middle East, Venezuela and Russia to name a few. These corrupt and often despotic (like Saudi Arabia) or faintly token-democratic oligarchic (Russia or Venezuela) states depend on oil export profits to mask the incompatibilities with their regimes in a free-moving marketplace. The lollipops and crumbs they throw to their people come from their heaps of oil money. So what happens when that cash cow weakens? What happens when the facade becomes exposed? What happens the difficulties it poses raise tensions and cause anger and resentment? Interesting questions to ponder.

If a events unfold that lead to events that lead to events that eventually stoke tension and hostilities between national factions or neighboring countries, you can be certain that we are seeing the initial dominoes that chain of events being tipped over by dropping oil prices...and not some jumbled explanation that has nothing to do with these factors. Most importantly what will be our role...if any? These are unpleasant questions to hash out.
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Maybe not (#137366)
by eeyn524

You probably have a good example with Saudi Arabia, which really has nothing but oil. But if you cut off 100% of the oil revenue in places like Russia, Venezuela, or Iran, conditions would still be better than in North Korea, which has had 50+ years of stable dictatorship. 50 years of economic hardship also failed to bring down Castro. So I don't see the cheap oil -> regime change connection being very strong.

Also, the average Venezuelan or Iranian might actually be a bit more realistic than we are about the connection between government and the economy. In particular, they understand that their leaders don't control the global economy, and that holding a free election or letting women wear less clothing isn't going to lead directly to higher oil prices and continued lollipops. So calling it a "facade" might not be appropriate. Of course, they might run into more direct practical problems like not being able to cover the military's payroll, but that's different than a popular uprising due to oil prices.

I don't keep up with internal Venezuelan propaganda. In Iran the govt states pretty openly that the oil is a finite resource; that's their main justification/excuse for the nuclear program.

I'm not really saying "regime change" (#137401)
by John

as much as saying "regime instability"...like a wounded animal....susceptible to rash acts to preserve its power against internal strife or exterior..

One Benefit. . . (#137354)
by M Scott Eiland

. . .of Obama's being elected is that we don't have to listen to a reprise of conspiracy theories from the usual idiots about how the Saudis were engineering reduced gas prices to help the Republicans.

Oh, and Little Fidel's economic troubles are definitely worth celebrating.

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Not true! (#137356)
by Gabriel

It's all Bush's fault, all of it.

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This place is my vacation.

a propos... (#137343)
by John

I see Richard Rahn is thinking a long the same lines that I am. His focus is on Africa and places like the Congo and Sudan. Good read.

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