Many theories have been floated about why we were hoodwinked into the post 911 Iraq war by the G.W. Bush Administration. Clearly, large amounts of money were made by America's oil industry as a result of this conflict. Texas oil companies came out particularly well as they did in the first Gulf War, but there's more. American household wealth nearly doubled between 2002 and 2008 with the top 1% capturing most of the gains. Money is power. Between the G.W. tax cuts, two wars, and the bursting of the housing bubble sending the U.S. Government toward bankruptcy, and an explosion in profits by America's oil producers, the Iraq war provided a catalyst for a massive power shift from Washington D.C. to the Oil Capitol of the World Huston Texas, seat of the Neo-confederacy.
No question about it, a net gain of around thirty trillion dollars signifies a massive power shift away from Washington. With a substantial portion of that money in the hands of the 1%, many of the state houses could be easily purchased. Indeed , with access to those trillions, interested parties have been able to warp reality to the point that known facts no longer have any power to pursued. The neo-cons have been trying to bankrupt the New Deal for decades, why stop there? Why not use the catastrophe of 911 to go for the whole enchilada? The South, complete with a resurgence of Jim Crow, has risen again with its power dependent on Holy War with the Middle East.
The video below refers only to American power as it relates to high oil prices. This was done because I felt that the concept of Neo-Confederacy over complicated the basic theme of war related disruption in oil production driving up demand and price for the handsome profit and enhanced power of America's oil industry. The fact that several other countries including Russia depend on high oil prices to balance their budgets shows a wider interest in Mideast chaos, however, the U.S. may be uniquely positioned geopolitically to contain the conflict we create. Needless to say, as far as oil producers outside of the region are concerned, the Middle East could cease to exist.
Side note:
A lot of folks prefer text because it's nearly impossible to scan a video for the grist with any kind of efficiency. I make videos in the vain hope of injecting ideas into the larger thought pool. I find it interesting that this video along with others with similar subject matter never get viewed. It may very well be that nobody cares, but sometimes I wonder. Are these videos shelved by YouTube(based in Texas) because they suck or for other more potentially nefarious reasons? You tell me.
Transcript:
In 2002 the base price of oil was about $20.00 a barrel. By 2008 that price had swollen to around $145.00 a barrel. In that same time frame American house hold wealth rose by 40% from just under $40 trillion to just over $65 trillion. It is interesting to note that the rising overall casualty rate of the Iraq War tracks closely to the rising base price of oil and the subsequent rise in American wealth during that same time period. This is because the chaos of war in an oil producing country slows down production and delivery. A Basic precept of economics is that when supply is disrupted demand rises and the price for that commodity goes up. America’s massive reserves of oil circa 2002 were not considered viable because of the large cost of production at that time. To make the Fracking of American oil reserves profitable, the price of oil must be as high as possible. The only thing standing in the way of massive profits by America’s oil industry was the cut rate sale of Iraqi oil by Saddam Hussein on the black market. Indeed, once he was out of the way, the War in Iraq proved to be most profitable for most of the major oil companies and at historic margins. It is obvious to most economists today that American economic power though once bolstered by low oil prices is now built on high oil prices made possible by ongoing chaos in the Middle East.
Not withstanding the fortunes that are owed to Halliburton Corporation for oil infrastructure built since the inception of the Iraq war, as far as America’s oil industry is concerned the oil producing Middle East might as well be blown right off the map. That includes the 10% of proven oil reserves held by Iran. It should be crystal clear at this point why American politicians like the former CEO of Halliburton Vice President Dick Cheney are always lobbying for sanctions against Iran while delicately stoking the embers of war in the Middle East in predictable directions. The flames of war must curtail production while also preserving Halliburton Hardware not yet fully paid for. So, it’s really a combination of economic sanctions and political chaos in those regions that create disruptions in oil production which, drives up demand and price.
Judging by the current decline in world oil prices, we might surmise that the jig is up for America’s oil producers. Unfortunately for them, Americans are tired of war and also happened to like paying lower prices at the gas pump. Now consider comments made by Dick Cheney about how “Next time they(the terrorists) will have deadlier weapons than airline tickets and box cutters…” They certainly will if Dick Cheney has anything to say about it. In order to drag an unwilling American populous back into war in the Middle East we will have to suffer a calamity at least as devastating as 911. One would hope that our new Republican Congress doesn’t decide to de-fund The Department of Homeland Security over something trivial in the near future. The results of such a move could be disastrous for everyone. Everyone that is, accept the American oil industry.
Sources:
World Oil Markets and the Invasion of Iraq
by Raad Alkadiri , Fareed Mohamedi
published in MER227
http://www.merip.org/...
“They called on Russia to cooperate with OPEC in cutting back production, but were rebuffed. Russia was playing a game of chicken with OPEC — a collapse in oil prices would not have served its economic interests either, since it had just emerged from recession and financial crisis. A large part of Russia’s economic recovery could be attributed to higher oil prices and the oil sector boom, which attracted substantial sums offsetting massive capital outflows. In the short run, Russia got the best of both worlds. OPEC cut supplies massively to support prices above $20 per barrel and simultaneously made room for additional Russian supplies. “
“Will Saudi Arabia accommodate its fellow OPEC members or will a price war ensue? There are a number of compelling arguments for a new price war. Lower oil prices will likely knock out more expensive non-OPEC oil in the US, Canada and the North Sea. Moreover, it will discourage new investment in costly projects such the tar sands development in Canada, deep offshore high-tech production and remote areas of Russia. Lower prices could also lead to another round of mergers among private companies in the West, thereby diverting capital from new development to buying existing oil assets. These losses in non-OPEC production would then provide extra room for OPEC output. This extra room could be allocated to the countries demanding disproportionately higher quotas. For a country like Saudi Arabia, lower prices are a stick with which to beat OPEC’s quota cheaters, given the damage their budgets and balance of payments would sustain while they wait for a larger chunk of world demand. “
Opec nations list
http://www.opec.org/...
Oil for food program wiki
https://en.wikipedia.org/...
Image of chaos in the middle east(image)
http://www.jpost.com/...
Picture of refinery
http://www.thisismoney.co.uk/...
Picture of a refinery(image)
http://www.iraq-businessnews.com/...
Oil map(image)
http://www.bigtrends.com/...
Oil price analysis(image)
http://oilprice.com/...
World oil production(image)
http://gregor.us/...
Exon Mobile gas and oil production(image)
http://crudeoilpeak.info/...
Iraqi oil production (image)
http://seekingalpha.com/...
Crude oil production and exports by month(Iraq)(image)
http://www.intellectualtakeout.org/...
Opec crude oil production and spare capacity(image)
http://www.theoildrum.com/...
Oil price and balancing budgets( Jay Greene's blog post)
http://jaypgreene.com/...
Texas oil production 1981 to sept 2014 (image)
http://s.newsweek.com/...
Iraq war protesters in front of White House(image)
http://wagingnonviolence.org/...
Americans celebrate low gas prices(image)
http://www.livetradingnews.com/...
911 image
http://3.bp.blogspot.com/...
Nuke over NYC(image)
http://2.bp.blogspot.com/...(American-1888—1986)-.-Destruction-of-New-York-City-by-a-Hydrogen-Bomb%2C-1952.jpg
Statue of liberty(image)
https://tse4.mm.bing.net/...
1:25 PM PT: Chris Hayes talks about Bill O'Reilly stating discursively that the "Holy War" has begun and the obsession of the Right with the term "Radical Islam". Holy War is the means to the end of democracy in America.
http://youtu.be/...