The Oil Crisis - Have We Peaked?
he War on Freedom!
The War on Terror!
The War in Afghanistan!
The War in Iraq!
Its enough to drive you mad!
Its also enough to get you thinking...
Thinking about questions like, 'How did we get here?' ... and more importantly, 'Where are we heading?'
Unfortunately, there are no pretty answers to either one of these questions, so, lets begin with the 'How did We Get Here?'
Do you remember the 'Cold War?'
Do you remember the collapse of the Soviet Union?
Well how do you think that happened?
In 1985, US President Reagan and his staff came to the brilliant realization that the only way to destroy the Soviet Union - without destroying the planet in the process - and win the Cold War was to destroy the Russian economy.
Render the system unable to function and it will collapse from within.
So how does one go about this nation destruction you might ask?
Well, as it turned out, all that was needed was a little fortuitous regional animosity and some basic economic analysis.
The Soviet Union's economy at the time was predominantly dependent on 2 factors:
The export of Soviet oil to Europe and military weapons and training to anti-Western countries.
To attack the first problem, the Americans needed an ally. As it turned out, Saudi Arabia (under constant threat and pressure from Iraq, Iran and Syria) needed an ally as well.
So the Saudis and the Americans made a deal, a partnership, a coalition of the willing if you will...and then they waited.
In 1979, Russia decided to defend their oil interests in Afghanistan by backing the Communist governemnt against the Islamic fundamentalist Mujahideen insurgents.
They sent in their troops...
In December 1985, the price of oil was $26.46. And then, suddenly, on March 31, 1986, it plummeted to $10.25. The Soviets couldn't keep up, and their already deteriorating economy began to finally collapse.
The Americans eventually repaid the deal with their participation into the Iraqi-Kuwait conflict or 'Operation Desert Storm' and their continuing 'presence' in the region.
But the seeds of the eventual real 'oil crisis' had been sewn.