Sunday, January 22, 2006

Darkness on the edge of town


It's a small world and the winds of change have blown. The US is at an impasse on the world stage and it is not because 'dubya' is evil or we are scorned as an imperialistic monster spanking a fugitive dictator. No, the impasse is from the paradigm shift of new alliances on the massive Eur-Asian continent.

There is a darkness on the edge of town and most folks don't like it none too much. Want to see an angry populace or a government fall out of favor? Try turning off the electricity or running water or, God forbid, pre-empt their favorite television show. It has all gone way past keeping the wolf away and the fireplace stoked. Billions of people in the far and near East are very accustomed to cell phones, refrigerated foods, electric lights, satellite dishes, consumer electronics, modern textiles and home appliances. These are culture changing devices and influence billions more people than bombs, bullets or boots ever could. Most all of it is the result of oil, coal and natural gas.

Oil, oil and more oil
China wants oil, not to mention natural gas. The Mideast and Eur-Asia have it and China wants it. China is the world's largest producer and consumer of coal, but coal doesn't fit very neatly into the twenty first century plans of plastic and electronics. China has been very aggressive about seeking new sources for oil and natural gas across the Eur-Asian continent, in particular with the former soviet satellite countries comprised of the 'Brothers Stan'. For now, China is reliant upon East Africa and, more importantly, Iran for its supply of much desired oil and natural gas to fuel the fastest growing economy in the world today. Russia with its oil & gas giant, Gazprom, is keeping a watchful eye on all of this.

Hence, the impasse for the U.S.
Herr whos-its, the current president of Iran, has been doing the sabre rattle boogie with regard to that country's development of nuclear power. Russia has a big stake in helping Iran develop that nuclear power, yet Russia does not want to alienate the west nor jeopardize future relations with its Persian neighbor. China has a big stake in wanting Iranian oil and does not want to alienate its supplier. All agree that sanctions against Iran would simply disrupt world wide oil supplies and send already high crude oil prices even higher. The U.S. is weighted down with current Iraqi obligations and further military muscle is not readily available for a show down with Iran. Besides, the feasibility and effectiveness of such an action is
dubious
at best. Israel still favors diplomacy.
But Iran knows this impasse will draw some sort of response and, in a cautious move, is removing its monetary assets from the west.


The major weapons in this diplomatic arm wrestle with Iran are not military hyper technology, rapid deployment forces and superior air power, but the world's supply and demand for oil and gas. China's voracious demand for oil and Russia's uneasy inroads with the west will determine the outcome for this one and how favorable it will be for the U.S.
Natural resources and growing economies are currently the most favored weapons of choice here in the new millennium. At least until some madman like Herr whos-its decides that a nuclear arsenal needs to be used in order to be appreciated.

Many thanks to the Boss for the title. I know how much he loves supporting all things conservative.
Next week I might try a Karla Bonoff motiff.



Happy monday!