[OPE-L:8434] RE: petrodollars, oil, etc.

From: rakeshb@stanford.edu
Date: Tue Feb 04 2003 - 18:33:16 EST


Re: [OPE-L:8433]

Thanks Bill for this site; I look forward to reading Nordhaus' 
account.

 I should mention that Rai's analysis of the IPC's dog in the 
manger policy can be found in elaborated form in John Blair's 
Control of Oil which I think I mentioned in our previous discussion. 
Iraq's challenging of it seems to have truly bothered Harrington 
who was one of the directors of Brown Brothers Harrington with 
which the Bush family has been aligned since its inception. Well I 
forget the exact linkages; I think they're reported in Blair's account 
which I don't have with me. The personalities involved in this are 
not an uninteresting part of the story. 

If there were to be continued pressures to roll back the US military 
in the post Cold War era (US military spending had gone from 6 or 
% of GDP under Reagan to 3 or so % under Clinton), I suppose 
that military occupation of the Middle East will give the US military 
something to do other than famine relief and well building, viz., as 
Rai argues direct and  indirect control over the profits and rent from 
the sale of oil which will likely remain priced in dollars. The center 
of US military presence will move (or continue to move) from 
Europe to the Middle East (or West Asia), as Eqbal Ahmad long 
ago predicted.   

And if the US  and world economy is going to need some kind of 
American Keynesian stimulus--and the Japanese seem willing to 
finance US deficits in order to prevent the rise of the yen--Bush has 
probably reasoned that it may as well come in a military form. Hell 
with Medicaire and prescription drugs, schools and that kind of 
stuff. 

I still don't think Rumsfeld has given (or been asked to give by 
brave American journalists) any high and low estimates of the Iraqi 
casualities which will result from the attempt to oust the Iraqi 
Ba'ath Party. 

Yours, Rakesh


This archive was generated by hypermail 2.1.5 : Fri Feb 07 2003 - 00:00:00 EST