Friday, August 26, 2005

Why the price of oil will continue to go up - part II

I was but a young lad so it seems, when I left my first company after some 8 years of service...I remember a meeting I had with the VP of R&D, and discussed the many ills that company had, and after the meeting, I had realized a fundamental truth: often dysfunctional organizations are intentionally planned to be that way.

With Iraq having massive demonstrations in opposition to its proposed new constitution, it might be asked, "Was this planned?"

I suspect so, and so does Tom Hayden...

Far from planting democracy, US policy is squelching what little democracy there is, threatening to dismember Iraq, causing a civil war that will be the pretext for US troops to remain, and re-arranging the Middle East to include a de facto Shiite alliance from Teheran to Basra. That's why Bush can find no "noble purpose". It is about a war for dominance, not democracy.

The only problem, though, is that continuing civil war will mean continuing threats to oil supplies. There can't be "dominance," because the civil war has in it the prospect- pointed out months ago by Gwynne Dyer- that the Iraqis will eventually realize this is a suckers' game.

In the meantime, there will be threats to oil supplies- because that's why we're there.

If they can stop the oil flow, they win against this gambit. But we lose, and lots of folks die. As long as there's no clear resolution, there's uncertainty and oil will be pricey.

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