The old newspaper where I wrote editorials for 19 years, the Orange County Register, today came out against free markets and for economic nationalism. Libertarian founder R.C. Hoiles (pictured at right) must be spinning in his grave as fast as an old 78 rpm turntable.
The editorial, “So much for gouging: The price of oil drops, a relief for our wallets and for our national security,” is on the recent decline in oil and gas prices. As I wrote on Oct. 10, the major reasons for this decline are the declining price of gold against the dollar (all commodities are tied closely to gold’s price), meaning lower overall inflation; and relative peace in the Middle East, with an attack by the U.S. or Israel on Iran less likely, for now.
I also noted that the price of oil usually falls within the range of 10 to 15 barrels per ounce of gold. That ratio has held up since World War II, despite many wars, recessions, the end of the Cold War, etc.
On Oct. 10, I calculated that ratio at 11.2. Today, Oct. 29, it’s a ratio of 11.1 ($68.40 for NYMEX crude, $760.1 for gold).
So, nothing has changed in 3 weeks — except the value of that funny money we call the dollar.
Foreign mischief?
However, the Register notes that oil’s drop (really an apparent drop)…
has a strong potential of making the world at large a slightly less dangerous place.
Three countries in particular, Venezuela, Iran and Russia, have used a good deal of the money they acquired when oil prices were much higher to bolster their ability to make mischief. If international oil prices stay (relatively) low, they are likely to be less troublesome than their leaders had hoped they could be.
The only reason any of these countries is of concern to America is because of our globe-straddling empire — which has bankrupted us. First, what “mischief” has Russia caused? The Register says:
Russia’s invasion of Georgia this summer (following Georgia’s attacks in South Ossetia) was met with widespread criticism but no effective action. In part this was because too much of the U.S. military is tied down in Iraq, and in part it was attributed to the growing dependence of Western Europe on Russian natural gas.
At least they note that Georgia started the war. Indeed, a new BBC report just found that it Georgia’s troops committed war crimes — on orders from the close Bush and McCain ally President Mikheil Saakashvili — when they entered the South Ossetian capital of Tskhinvali. The Russians stopped the war crimes and expelled the criminals.
And anyway, what business is it of America’s what goes on in that region of the world? What does the Register mean by the U.S. being unable to take “effective action”? Should we have sent troops there to fight the Russians? Maybe they would like to volunteer and join the U.S. Army? Maybe they would like to dig me a bomb shelter as protection against Russia’s 10,000 nukes?
We don’t need a new Cold War and the Russians are not communists anymore, nor are they even a remote threat to America — unless our insane government incites them. The Russkies actually are less communist than the USA. The top Russian income tax rate is 11%, America’s is 35% (going up, up, up under President Obama), plus another 10.3% in California.
Venezuelan boss Chavez is a minor mischief-maker and always has been.
Amok on Iran
On Iran, the Reg writes:
If oil prices stay low, Iran may have to cut back foreign meddling and reach some kind of compromise on its nuclear ambitions. President Ahmadinejad, who has been steadily losing popularity anyway, could well be defeated in next June’s elections.
Is Iran going to stop meddling with its Shiite buddies in Iraq? Hardly. And who put the Shiites in power in Iraq, dumping the Sunnis who don’t like the Iranians? Bush and the Neo”conservatives.” Oh.
According to Bush’s own National Intelligence Estimate, Iran stopped its nuke program in 2003.
President Ahmadinejad actually holds a position below that of the mullahs who really run Iran, and is just a loudmouth. The Bush administration itself is working to establish an “interests section” in Iran.
America needs peace, not empire
The Reg editorial seems to have been dictated by Dick Cheney’s office.
The fact is, there is no energy crisis, as I wrote in August.
Further, the United States nowadays has no enemies abroad but those our foul government itself makes. We need to return to our Founding Fathers’ philosophy of no foreign entanglements.
The U.S. government’s immense foreign empire has bankrupted us. It should be dismantled entirely, the troops dismissed to return to their familes, and the money saved returned to taxpayers.
The Register used to understand that.
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