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Tuesday, February 24, 2015

It Isn't Just the Oil


For John, BLUFIncreased US domestic oil production reduces reliance on Middle East oil.  Nothing to see here; just move along.



On City Life this morning, the Producer, Mr John McDonough, opined that the only reason we are in the Middle East is oil.  I don't agree with this assertion, but I didn't have a nice fancy label to use for my theory.  Then I read an EMail.

My idea is that Iran hates us (the Great Satan), and we embargo them, and yet they continue to try and ship oil for sale overseas.  Nations like Iran, Iraq and the Kingdom of Saudi Arabia have oil to sell and they well sell it, because they are Rentier States.  As Wikipedia puts it,

In political science and international relations theory, a rentier state is a state which derives all or a substantial portion of its national revenues from the rent of indigenous resources to external clients.  This theory was first postulated by Hossein Mahdavy in 1970.  It was also in this article that the concept of external rent was first introduced.
Well, rent here is a technical term.  The point is they are selling to us and that is how they make their money.  If it wasn't for the natural resources, or the harbor or airfield we want for military purposes, they would be trading dates and camels amongst themselves and no one would care.

We did Kuwait because we didn't want Iraq becoming too powerful and starting wars on others.  After all, Kuwait and Saudi Arabia are customers for our arms sales.  It wasn't about the oil, it was about regional hegemony, which we had found, previously, to be a bad thing.  Like with Germany and Japan in the late 1930s and early 1940s, or the Soviet Union after WWII.

There is another factor, which probably doesn't get much play in this part of the nation, but there are those who believe strongly that those who bless Israel will be blessed (Gen 12:3), and visa-versa.  They point to England as an example of this in action.  The thing is, these folks turn out to vote in disproportionally large numbers.  Politicians know this.  President Obama may be cool to Israeli Prime Minister Bibi Netanyahu, but the 535 Members of Congress understand this, even if they hate it.  It may not be a big deal for the Coasties (unless the election is close), but it is a big deal in the hinterlands.  Read Deer Hunting With Jesus—only $9.99 on the Kindle.

Regards  —  Cliff

  I think this is a shaky historical example, but the principle may well hold.

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