Blog Credo

The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.

H.L. Mencken

Tuesday, June 14, 2022

Past Time To Reset

 Josh Marshall's analysis about Biden meeting with bin Salman is spot on. There are a lot of reasons why we've had inflation for the past year, but the reason we continue to have high inflation is linked to energy price instability. Saudi Arabia, our erstwhile ally, is fucking us over. And there is nothing we can do about.

For now.

A separate set of negotiators are working on repairing the nuclear deal with Iran. Meanwhile, we should be looking to square things up with Venezuela. Even if we don't import a ton of Iranian oil, easing the sanctions and allowing Iran to sell its oil to Europe will help prices everywhere.

All of this, of course, is because many of the very worst regimes in the world sit on massive reserves of oil. Even the emerging democracies that do - Nigeria, Brazil, Mexico - are warped by this stuff. 

So, Saudi Arabia is screwing us over and our dependence on oil is screwing over millions of people around the world.

If it were up to me - and there is no chance it will be - I would probably acquiesce to accommodate the various kleptocracies and brutal dictatorships that currently hold a chokehold on global oil supplies. But long term, you'd need to be able to wean yourself off imported oil. For the first time, there's a technological ability to really do that. 

Once oil prices come down, any agreements with the House of Saud should be abandoned. Ally with Iran and Iraq and see how sustainable Saudi Arabia finds its situation.

Your drug dealer is not your friend.

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