Category Archives: oil

Large Middle East War is inevitable

There are different wars going on in the Middle East, all of them more or less going on at the same time. The purpose of the war in Syria is to partition it. The facade reason is that the “killer dictator” Assad must go. If Syria is partitioned into a Kurdish North East where the Euphrates flows, then water could be pumped to water-starved Israel by land and by sea. ISIS has been losing in Syria, although the final word has yet to be spoken. Whoever started ISIS is an enigma. Selling oil and financial transactions via SWIFT, (the Society for World-wide International Financial Transactions controlled by Federal Reserve Bank of New York), are not impeded by the US. Turkey is in Syria to prevent the creation of a Kurdish State, which would of course be a threat to its’ existence. Turkey initially supported ISIS because it felt it could occupy Syria’s Kurdish region but Erdogan switched after the coup d’état.

Turkey, despite being a NATO member, is being destabilized. South East Turkey, predominantly Kurdish, would be split to join the Kurdish areas of Syria, Iraq, and Iran into a greater Kurdistan which would then be friendly to Israel. Israel would then have an abundance of cheap water, oil, and gas. Turkey knows this. It is switching to Assad’s Syria, Iran, and Russia. A quiet alliance is forming between Turkey, Iran, and Pakistan. The “One Belt, One Road” policy of China will go through Pakistan, Iran, Turkey, via the Balkans into Europe. The US is also quietly organizing an Arab anti-Iran alliance that is friendly to Israel,  composed of the Gulf States and Saudi Arabia.

The partitioning of Iraq was in the cards of the West: the Sunni West around Ramadi, the Shia south from Baghdad to Basra, and the Kurdish north east around Kirkuk; possibly Mosul as well.

Lebanon would also be destroyed and Israel would get the water of the Litani River. So far, Israel has not been successful.

The Yemeni-Saudi war is not going too well. The Houthis are holding their own against the Saudis. It is quite likely that the Yemeni war will lead to a Saudi demise.

For all the problems in the Middle East, the US and Israel are blaming Iran as the major culprit. Because of Iranian missile testing, (which is not a violation of Nuclear Agreement that US has signed), the US and Israel are threatening Iran.

If the US and Israel attack Iran, Iran will respond by closing the Persian Gulf. the price of oil would go sky high. There would be a shortage of oil world wide. Iran would hit Israel with missiles. If Israel goes nuclear, Iran would try to destroy the Dimona nuclear reactor in the Negev desert. If Israel persisted with nuclear attack, Pakistan would lend Iran several nuclear bombs to hit Israel in return and a world wide chain reaction would follow resulting in a total collapse of many regions of the world.

Let us hope this does not happen. Only time will tell.

Advertisements

No te rindas, Venezuela

All of Latin America is in trouble but Venezuela stands out in a way that cannot be ignored. What happens in Venezuela will have a profound effect on the rest of Latin America and the world. The Bolivarian Revolution of Hugo Chavez is under vicious attacks by the domestic oligarchy and the oligarchs are willing to destroy the country in order to win; they also have the unconditional support of London and Wall Street bankers.

Venezuela is a beautiful country whose name means little Venice. It was named Venezuela by Amerigo Vespucci, an Italian explorer in the service of Spain. It is claimed that Amerigo saw houses on stilts on Lake Macaraibo as in Venice and thus came about the name. Others claim that it was named for an Indian tribe of similar name. Whichever story is true, Venezuela is a significant country of Latin America and the world. ( Incidentally, the “Americas” were named after Amerigo Vespucci in early 1500.)

Venezuela is a fairly large country with an area of over 900,000 square kilometers and a population of over 33 million people. It is very rich in natural resources, especially oil, minerals, and land with multiple bio-diversity. President Hugo Chavez changed the character of the country. His Bolivarian Revolution enacted programs that benefited the people. The oligarchy went berserk and attempted a coup d’état in 2002 that failed. He nationalized the Venezuelan oil company and returned gold from abroad. Unfortunately, he died in 2012. Nicholas Maduro, a former foreign minister, was elected president.

In 2014, the price of petroleum collapsed, hitting Venezuela very hard. The oligarchs, or the fifth column and their external supporters rejoiced. Shortages occurred of basic consumer goods such as toilet paper, the result of private corporations hoarding them. Revenues of the government collapsed because the price of oil had collapsed. Inflation ensued and shortages of goods worsened. The value of the Venezuelan currency, the Bolivar, collapsed. Opposition of the lower house of the Venezuelan Congress was won by the oligarchs. The oligarchs want privatization, austerity, and the impeachment of President Maduro. External forces are so happy and they are doing all they can to overthrow the Bolivarian Revolution of Hugo Chavez.

Will they succeed? It is difficult to say, because, since the Bolivarian Revolution, the Venezuelan people are politically awake. They will demand and protect their rights, so the Fifth Column must be careful, because a true revolution might arise that will sweep the oligarchs into the dustbin of history. The people know that the economic depression is due to the collapse of the price of oil which may have been engineered by the same forces who want to destroy Russia. Subsequent shortages of goods caused by private corporations in order to destroy the Bolivarian Revolution. The same process is going on in Brazil with the impeachment of President Dilma Rousseff. The real revolution might just be around the corner, not only in Venezuela, but in Brazil and the rest of Latin America and the Caribbean. Ne te rindas, Venezuela. Only time will tell.

 

 

The role of oil in geo-economics

The Indios of Latin America call petroleum [ the oil of rock], the blood of Mother Earth. Oil comes from the innards of the earth and fills numerous huge caverns as it seeps to surface. It is not dead trees and animals. The discovery of oil in Titusville, Pennsylvania in 1859 changed the world. The individuals and countries who controlled the petroleum resource had obtained such a power that is almost unimaginable.

Oil is not only fuel, but also building material. It is the raw material for pharmaceuticals, for cosmetics, for plastics of all kinds, for clothing of all kinds, and many other products. It is also the essence of US power. After the October War of 1973, which Israel was about to lose, a massive US military resupply intervention ordered by President Nixon saved the day. The US was able to convince OPEC to price oil in US dollars. Overnight, the Dollar was not only backed by the full faith and credit of the US Government, an empty promise, but also by the most  valuable commodity for the modern world, OIL. The dollar became the most powerful instrument of US Power and it no longer needed gold. President Nixon was a great President. His reward: Impeachment.

Entering the New Millenium, the World and the US have faced new economic problems. The economic meltdown of 2008 led to a so called “Recovery” from which the world has never recovered and the US economy is still ” recovering…”

The recovery is impossible, because by decreasing the price of oil intentionally to punish the Russians , the world’s liquidity started to decrease. There is a shortage of dollars. Value of the dollar went up. Debt burden of the Developing  World increased and is becoming unbearable. To service the debt, they had to sell their natural resources at any price. The price of the commodities has collapsed. The Third World countries, especially the oil producers have decreasing revenues to buy manufactured goods. Hence, China, South Korea, Japan, and Europe are slowing down, and that further puts pressure on the commodities, especially the Oil. Also the first world economies of Canada and Australia are in collapsing mode.

Ivy League economists are gloating that lower gasoline prices are positive for the economy, but they never ask why consumption of gasoline is decreasing in the US if there really is a recovery. It is not dropping because of electric cars or modern public transportation system, which does not even exist in the US. The consumption of gas is dropping because people have no money. The US has three economic classes: ownership class, 1%, doing exceptionally well; the overseer class,4%, doing well; and the Precariat Class, 95%, doing very poorly and not being able to afford gas.

The world may be entering a new and very severe economic winter or even a new economic ice age because of human evil, which is using oil as an instrument of economic war. Only time will tell.