McQuaig cited a US Department of Energy National Energy Laboratory
report saying: "The world has never faced a problem like
this....Previous transitions (like 'wood to coal and coal to oil') were
gradual and evolutionary; oil peaking will be abrupt and
revolutionary," and may already have occurred. Further, with America
waging two costly oil-related wars for much of what's left, gaining
control has become violent with no letup in sight and more oil-rich
nations in Washington's target queue. More on that below as well and
the fact that oil consumption keeps increasing, two huge emerging
nations (China and India) need growing amounts of it, just at a time
production peaked and is declining. That's a combustible mixture now
playing out in Iraq, Afghanistan, and Somalia. It also affects Iran,
Venezuela, Sudan (for its Darfur oil riches) and other strategically
important oil-rich nations that dare defy America by wanting control of
their own resources along with the major share of revenue from them.
McQuaig deals with this timely and important subject in the part of the
world where it matters most - the Middle East and especially Iraq where
America came to stay. Her book is divided into 10 tantalizingly titled
chapters. It was written in 2004, updated in 2006, and is just as
relevant now as when first published. Some of the story is known, but
much information covered isn't common knowledge and key parts aren't
discussed at all in the mainstream. They include the rise of Big Oil
and OPEC, Iraq's strategic importance, its potentially immense and
easily accessible untapped oil riches, and America's intention to turn
the nation into a centrally located Middle East military base with
plans to stay as long as there's enough oil in the country and region
to make it worthwhile. Current talk of future force drawdowns and
withdrawal is baloney. That will be discussed further below as well.
McQuaig provides lots of relevant context for a full understanding of why oil centrally dominates geopolitics today:
— wars and the reason America fights so many of them - for the
essential resources, mainly oil, to keep the heart of capitalism
beating, without which it can't;
— the dominant media's vital hyperventilating lead cheerleader role selling them;
— the power of the oil cartel and how it developed and grew after Edwin
Drake drilled the first commercially successful well in Titusville, PA
in 1859.
— how John D. Rockefeller ruthlessly built a powerful Oil Trust he
controlled; how it was nominally dismembered by Theodore Roosevelt's
trust-busting efforts early in the last century; yet how it endured
through joint ventures, interlocking directorates, mergers and "working
(partial ownership) control" of its separate pieces, the largest of
which was Rockefeller's Standard Oil of New Jersey, now called
ExxonMobil. The old Oil Trust would fit in its back pocket.
— the role of the US auto industry and its addiction to gas-guzzling,
hugely greenhouse gas emitting, high-profit SUVs accounting for
one-fourth of all US auto sales;
— the rise, fall and reemergence of OPEC;
— the historical roles of Saudi Arabia and Venezuela as dominant oil
producing nations and the central role Iraq plays today as the grandest
of grand oil prizes;
— the hugely important issue of global warming fossil fuel burning
causes; how transportation is over one-fourth of the problem with
passenger vehicles the main culprit, and this industry's accounting for
half of total oil consumption;
— and still more in McQuaig's powerful, riveting, and relevant account
of oil's central importance in our lives. Her book reads like a
thriller. But the story is real, and it's vital to know its contents.
Read on for a detailed sampling. Then buy and read the book for the
full account.
Fort Knox Guarded by a Chihuahua
The title refers to language about oil-rich Canada that a US investment
service, called Daily Reckoning, used in a provocative newsletter
article. It said Canada owes us (their) oil. "Without our protection,
(the country) is the natural resources equivalent of Fort Knox guarded
by a 'No Trespassing' sign and a Chihuahua" because our military
protects our northern neighbor. That's likely news to most Canadians
for a country with no enemies. Canada, however, is extremely oil-rich,
and counting its huge amount of hard to refine tar sands oil ranks
second in the world in total reserves.
In her newest book, "Holding the Bully's Coat," McQuaig explains her
nation is currently the US's leading energy supplier. Canada's
importance will grow ahead as it plans to triple its oil sands
production by 2015 to three million barrels daily, earmarking most of
it for US markets. It's part of a secretly launched 2005 scheme called
the Security and Prosperity Partnership of North America (SPP) or North
American Union.
It's a tri-national agreement hatched below the radar, controlled by
Washington, and advocates greater economic, political, social, and
security integration between the US (as boss), Canada and Mexico. In
fact, it's an ugly corporate-led plot against the sovereignty of three
nations for greater profits, enforced by a common hard line security
strategy already in play in each country. It's goal is a borderless
North America under US control without barriers to trade and capital
flows for corporate giants, mainly US ones.
It's also to insure America gets free and unlimited access to Canadian
and Mexican resources, mainly oil, but Canadian water, too. That will
assure US energy security while denying Canada and Mexico preferential
access to their own resources henceforth earmarked for US markets. The
scheme amounts to NAFTA on steroids combined with Pox Americana
homeland security enforcement partnered with Canadian and Mexican
contingents. It adds up to the worst of all possible worlds headed for
an unmasked "deeply integrated" police state.
Canada is also currently hamstrung by a provision it agreed to in
ratifying NAFTA in 1993. It gave up the right to reduce its US energy
exports (should it need more of them) unless it cuts its own
consumption by a comparable amount. Oil-rich Mexico, in contrast,
agreed to no such provision and got an exemption Canada lacks. Canada
has a loophole, though, SPP provisions will close if enacted. NAFTA
can't prevent the country's use of its newly developed tar sands oil or
the right to export them to other nations, as of now. With that in
mind, Canada is building a 720 mile oil pipeline from northern
(oil-rich) Alberta to British Columbia in the far west. When completed,
it will enable resources to be exported to China or any other
oil-consuming nation Canada chooses to trade with.
Meanwhile, back in the US, the Iraq war was launched in March, 2003.
Dominant media fear mongering helped sell it, giddy cheerleadering
accompanied its start, the reasons for going were reinvented when ones
first given were exposed as lies, excuse-making now explains why things
haven't gone as planned, and all the while we're told it had nothing to
do with oil. And fish don't swim, and birds don't fly. Instead, as
McQuaig explained "....the Iraq saga (was to disarm) a dangerous
dictator (morphed into) a battle to bring democracy to the Middle East
(with) oil remain(ing) strangely offstage, hidden in plain sight."
Clearly, oil drives US policy because of this nation's insatiable
appetite for 25% of world production Washington feels it has a
birthright to use excessively. We now compete with other growing
economies for a dwindling supply of an irreplaceable resource we can't
do without. McQuaig noted that prospect looms as "the world is much
closer to running out of oil than most government or industry officials
are willing to admit." We now compete with China and India along with
developed nations, with China's prodigious growth alone devouring huge
amounts of a fast-depleting resource at current rates of consumption.
McQuaig quoted Edmonton-based energy economist Mark Anielski saying:
"There's not enough oil to feed two (voracious) superpowers." Enter
Canada as already explained above and Venezuela to be addressed later
in a separate chapter on that oil-rich nation under Hugo Chavez. For
now, it deserves mentioning McQuaig brings him up because he made some
"far-reaching deals with China to develop Venezuela's considerable oil
reserves" and build a relationship with the Asian giant to supply it
with increasing amounts of future output.
The problem is no matter how much more oil is left in the ground, we're
now consuming more than we're producing. "Oil is finite and not
recyclable," noted McQuaig, and past experience shows humans aren't
smart or caring enough to figure a way out of this dilemma without
making painful changes they haven't been inclined to do so far. Today,
the world runs on oil. It touches nearly all parts of our lives from
running our factories to powering cars and other means of
transportation to growing the food we eat and much more. McQuaig
explained "no energy source in view....is as effective, versatile, and
potent as oil." Yet, the solution to our dilemma is to rely on lots
less of it, substituting less ecologically damaging sources like wind,
sun and waves.
We've already consumed around half the world's supply, according to
many reliable estimates, and have done it mostly over the last 100
years. There may be about one trillion barrels left in the ground, but
at current consumption rates it'll be gone in forty years or less.
Also, the easy to find and produce oil is running out. It's nearly all
been found except in Iraq, making that country so attractive. The vast
remaining reserves elsewhere are hard to find, expensive to produce and
more costly overall to bring to market, like Canada's tar sands and
Venezuela's heavy oil.
McQuaig noted an oil industry rule of thumb is companies should bring
on at least as much new oil as they produce. The industry, however,
falls far short of that, and some analysts, like Matthew Simmons,
believe the world's largest oil-rich nation, Saudi Arabia, has
considerably less oil left than it claims because it used up so much
supplying the West as its swing producer. As supplies get lower and
scarcity grows in the face of rising demand, oil prices will also rise,
and one Wall Street firm, Goldman Sachs, thinks they're not far from
topping $100 a barrel.
McQuaig also raised a central issue she devotes an entire later chapter
to - a looming global warming crisis barely getting the attention it
deserves although credible climate scientists no longer debate what
they know is a major problem demanding attention now. Here she cited a
Pentagon-commissioned report describing global warming as a phenomenon
"that could transform the world dramatically in the next twenty
years....with major European cities (submerged) and Britain plunged
into a Siberian climate." The report also sees a coming plague of
"typhoons, mega-droughts and famine" ahead that will bring
"catastrophic changes" causing "widespread human strife and even
nuclear conflict."
The Pentagon's concern is national security, so its top brass are
planning ahead for what McQuaig called "the prospect of life on earth
reverting to a primitive, desperate, brutal quest for survival" needing
lots more Marines available to subdue. That's no concern at the
headquarters of the largest, most profitable company on earth - oil
giant ExxonMobil. It earned a record $39.5 billion in 2006 on sales of
$377.6 billion, more than double oil-rich Venezuela's GDP the same year
according to IMF data.
If ExxonMobil were a nation, it would rank number 20 in the world
(based on GDP) for 2006 ahead of Switzerland and Indonesia and slightly
behind Sweden and Turkey. It means this company has immense power and
uses it to keep the world consuming increasing amounts of what grows
its sales and profits and keeps elevating it higher in the world
rankings of countries by size. Notions like global warming, climate
control measures, and Kyoto agreements send chills through its
boardroom. The company acts aggressively to deny a problem exists or
that oil and other fossil fuels are a cause for concern.
Conservative think tanks like the Competitive Enterprise Institute echo
the same claim with its director, Myron Ebell, calling Kyoto defenders
"an animus against humanity." Because it gets generous funding from
ExxonMobil and other corporate interests, it has every incentive to be
dismissive about what there's virtual scientific consensus on.
Problem or not, the US intends to lock up control of as much of this
resource as possible by any means and whatever the consequences. The
need for it goes back decades as a "vital American policy objective."
Referring to Saudi oil, the FDR state department quoted above said
their resources "must remain under American control (to supplement and
replace) our dwindling reserves (when we had plenty of them), and of
preventing this power potential from falling into unfriendly hands."
All American presidents accept this notion, even Jimmy Carter in his
January, 1980 State of the Union address as he was about to leave
office. He laid out his Carter Doctrine (written by Zbigniew
Brzezinski) stating: "An attempt by any outside force to gain control
of the Persian Gulf region will be regarded as an assault on the vital
interests of the United States of America, and such an assault will be
repelled by any means necessary, including military force."
The same theme with a different emphasis came out of Dick Cheney's 2001
energy task force. It acknowledged a dwindling supply of world oil
reserves focusing on the Middle East as a stopgap solution "where the
prize ultimately lies." He had a plan to get it that's discussed below.
Along Comes Iraq
>From inception, the US was always an imperial nation. It was in our
DNA from the beginning when our earliest settlers slaughtered millions
of Native Indians for their land and resources in our great push West
and South "from sea to shining sea." Jefferson even sanctified it in
our Declaration of Independence calling Native peoples "merciless
indian savages," and our Constitution dismissed them as non-persons.
WW II changed everything, however, when America emerged as the only
dominant nation left standing. We became the world's unchallengeable
economic, political and military superpower with designs for world
hegemony. It emerged full-blown under George Bush post-9/11 whose
administration-picked officials designed an imperial grand strategy in
1998 as members of the Project for a New American Century (PNAC). It
revived Paul Wolfowitz and Dick Cheney aide Lewis Libby's 1992 hawkish
Defense Planning Guidance putting in new form a plan for "Rebuilding
America's Defenses: Strategies, Forces and Resources for a New Century.
It also updated the Truman Doctrine (state department advisor George
Kennan devised) for "Cold War containment" and an earlier strategy for
US global military and economic dominance.
Today, the Middle East, Central Asia and all independent-minded oil
rich and other states have replaced the Soviet bloc, and the new evil
empire is "international terrorism" and "Islamofascist" threats to our
national security. It's the same old scheme for world dominance
repackaged with new names and faces replacing old ones.
Enter Iraq, the Bush administration had designs on before settling into
office. Treasury Secretary Paul O'Neill revealed it was topic one in
the early weeks of 2001, months before 9/11 made attacking and
occupying it possible. He was shocked to discover the scheme was being
hatched secretly by Dick Cheney in the first meeting of the National
Security Council held 10 days after the President's inauguration. The
decision was taken with talk moving on to logistics of "how" and "how
quickly," and whether Iraq or Afghanistan was number one or two in our
target queue. The latter, of course, came first with Central Asia's
immense resources in mind, but it was just prologue for the "shock and
awe" that began in March, 2003 in the land between two rivers in the
cradle of civilization, now smashed by intent to free up its oil
bonanza for Big Oil to exploit.
Pulling off this scheme meant getting the public on board that works
best by scaring it to death with lots of help from round-the-clock
dominant media hyperventilating. It made it easy selling the concocted
notion of "Enemy Number One" Osama bin Ladin (a former CIA asset),
Al-Queda terrorists and the "smoking gun threat" of WMDs showing up in
the shape of a "mushroom-shaped cloud." Former Dean of the University
of Pennsylvania's Annenberg School of Communications, George Gerbner,
explained how it works: "Fearful people are more dependent, more easily
manipulated and controlled, more susceptible to deceptively simple,
strong, tough measures and hard-line postures....they may accept and
even welcome repression if it promises to relieve their insecurities"
and anxieties.
Paul Wolfowitz may have inadvertently revealed the Bush
administration's scheme to do it. He first said the WMD threat was
chosen for "bureaucratic reasons." Then he told Singapore journalists
on an Asian visit it was the only reason everyone could agree on, and
finally he admitted Iraq was chosen over North Korea because it's
swimming on a "sea of oil." That went unreported in the mainstream
where "the word 'oil' remained unmentioned and unmentionable."
When no WMDs were found, the reasons for war were reinvented. Now the
emphasis was to bring democracy to the country as a humanitarian
intervention, and being wrong about WMDs was chalked up as faulty
pre-war intelligence. Again, the real oil motive was kept off the table
"in plain sight" as McQuaig observed. It was also to remove a leader
unwilling to let his nation become a US pawn, an unforgivable sin in
Washington's eyes, especially if the state swims on a "sea of (mostly
undeveloped easily accessed) oil." Iraq's oil treasure is the last
bonanza of "low-hanging fruit" on the planet making it too rich a prize
to pass up regardless of cost or degree of difficulty getting control
of it.
McQuaig explained exploration of Iraq's oil potential remained "frozen
in time" with almost no new development in over two decades because of
intervening wars going back to the 1980s and economic sanctions in
place following the Gulf war in 1991. Yet, even with dated information,
it's known Iraq has at least 10% of world oil reserves. If its
potential ends up doubling or tripling, as happened in Saudi Arabia in
the last 20 years, it could, in fact, have the world's largest proved
reserves. McQuaig noted that possibility is "staggering" in importance
making the country "the most sought after real estate on the face of
the earth" according to an oil analyst she interviewed.
In future years, with its production potential fully developed and oil
at $50 a barrel (it could be double that or more), it translates to
revenue of $70 billion a year pumping 5 million barrels daily and $100
billion at 7 million barrels. Today, Saudi Arabia produces 8 million
daily barrels or more if called on. Iraq is also strategically located
between Saudi Arabia and Iran at the top end of the Persian Gulf. It's
thus ideally positioned for a military base as McQuaig's quoted oil
analyst observed saying: "Think of Iraq as a military base with a very
large oil reserve underneath....You can't ask for better than that."
It makes the country so strategically important, Global Policy Forum's
James Paul argued losing Iraq would have been devastating for Big (US)
Oil. It represents "the whole future of the oil industry," frozen in
time, hugely endowed, and easy pickings for the lucky companies able to
harvest it and reap immense profits doing it. Because of its
importance, the Cheney energy task force included Big Oil giants in its
secret discussions making plans for war with Iraq and needing its input
for parcelling out its resources afterward. The Wall Street Journal
reported in October, 2002 Cheney's staff secretly met with ExxonMobil,
ChevronTexaco, ConocoPhillips and Halliburton executives on plans to
secure and rehabilitate Iraq's oil fields. Thereafter, they'd take them
over and run them.
>From the early 1970s, most Middle East countries and Venezuela's
oil industries were nationalized, and state-owned oil companies still
control most of the world's oil. McQuaig noted "major international oil
companies control a mere 4 per cent" but adjusted and prospered under
that arrangement nonetheless. In the Middle East, and most everywhere
else, they do the drilling and pumping under revenue sharing contracts
with host governments.
We now know what McQuaig may have been the first to report in her book
- that Washington's plan for Iraq involved privatizing its oil industry
along with everything else in the country already sold off to foreign
investors by 2007 or will be. She noted a secret 100 page contracting
document drafted by the US Agency for International Development
(USAID), with Treasury Department help. It detailed a plan to replace
Iraq's state-run economy with a privately owned one. It was a "Mass
Privatization Program" calling for "private sector involvement in
strategic sectors, including privatization, asset sales, concessions,
leases and management contracts, especially in the oil and supporting
industries." McQuaig said it was to "make the country a safe place for
foreign investment," or put another way, a free-market paradise for
corporate America.
A state department subtler form of oil privatization was drafted as
well with heavy oil industry input. It laid out seven possible
production models all involving Iraq's oil nominally remaining under
state control with "operation and control of the oil fields....handed
over to foreign oil companies."
Subtleties apparently were abandoned in the final US-Big Oil drafted
"Hydrocarbon Law" scheme filled with secret provisions now before the
Iraqi Parliament. It's hugely contentious as it grants Iraq's National
Oil Company exclusive control of only 17 of the nation's 80 known oil
fields. The others are set aside for Big US and UK Oil investors mainly
in a shameless act of plunder. In addition, all new deposits found (the
bulk of the country's oil) are to be set aside for foreign investor
development with provisions allowing them to expropriate all earnings
and invest nothing in Iraq's economy. They also have no obligation to
hire local workers, respect union rights, or share new technologies. In
addition, they'll be granted long-term contracts up to 30 or more
years, dispossessing Iraq and its people of their own resources in a
naked scheme to steal them.
Because Iraqi resistance to US occupation is so unrelenting, intense
and violent, there's no way for sure to know how future events will
play out. One thing is sure, however. Iraq's oil bonanza won't be as
easy for foreign investors to exploit as once thought possible and may
never be.
The Man to See
In this section, McQuaig details the lucrative business of
war-profiteering showing why conflicts are great for business. For
companies close to the Bush administration, it was a bonanza waiting to
be reaped from huge no-bid contracts. First in line was Dick Cheney's
former employer, Halliburton and its subsidiary Kellogg, Brown and
Root. Since 2001 in Afghanistan and Iraq, it was awarded upwards of $20
billion in war-related contracts the company then exploited to the
fullest with shoddy work, massive cost-overruns and fraudulent
billings, most barely drawing attention. Early on, Halliburton's Iraq
oil field repairs were so poor the US Army estimated it cost the
country $8 billion in lost production. It also botched a simple job
installing metering systems at ports in southern Iraq to protect
against oil being smuggled from the country.
In all, well over 70 US firms, most well-connected and many with
familiar names, shared in the contracting bonanza - companies like
Bechtel, Fluor, Parsons, Shaw Group, SAIC, CH2M Hill, the Louis Berger
Group, the Rendon Group, and at least 21 private security companies
like DynCorp, Triple Canopy, Erinys and Blackwater USA supplying around
100,000 hugely overpaid paramilitary mercenaries (not the official
phony 30,000 industry number). They supplement 170,000 US occupying
forces providing protection for other war-profiteering companies and
Iraqi officials.
Last year, Nobel laureate economist Joseph Stiglitz estimated the war's
cost would ultimately exceed $2 trillion when all factors related to it
are included making it the most expensive war ever adjusted for
inflation. Omitting parts of what Stiglitz included, the conservative
Congressional Research Service (CRS) June 28, 2007 Report for Congress
showed $610 billion already approved through FY 2007 and May 25, 2007
supplemental funding covering Iraq and Afghanistan war related costs
and other Global War on Terror operations since 9/11. At that level,
it's approaching the inflation-adjusted $650 billion Vietnam war cost
it may, in fact, have already exceeded.
Add an administration requested $148 billion more for FY 2008 and the
cost jumps to $758 billion. Projections will likely go higher still
with monthly "burn rates" spiraling from about $8 billion in 2005 to a
Senate-estimated $12 billion now. Add in an administration requested
DOD FY 2008 budget of $648.8 billion plus another $148 billion
war-related supplemental for a grand total $796.8 billion - and rising
for a bonanza of war-profiteering, waste, fraud and abuse. CRS
conservatively under-projects a total cost up to $1.4 trillion for the
next 10 years at reduced troop levels ranging from 30 - 70,000 on the
assumption America is in Iraq and Afghanistan to stay with major
permanent base installations in place and being built to assure it.
Capable Iraqi professionals and workers haven't shared in the spoils of
war and were never part of Washington's occupation plans. They've been
denied an operational role rebuilding and running the country's
essential services they can do as well as foreign investors and for
much less cost. McQuaig quoted former Iraqi oil minister under Saddam
in the 1980s, Issam Al-Chalabi. He's not Iraqi exile Ahmed Chalabi who
conspired with the Bush administration to plunder his own country,
wanted to run it, and is the current oil minister. Issam Al-Chalabi was
incensed that companies like Halliburton got contracts to put out Iraqi
oil fires and rebuild the country's oil wells and production capacity.
"Iraqi professionals have been doing this for decades," he said. "They
are among the best in the world."
Iraq's National Oil Company is also capable of running the nation's oil
industry but will only get a sliver of it if the new "Hydrocarbon Law"
passes and becomes law. This was the key part of Washington's plan for
ownership and management that includes all of Iraq's economy to pass
largely into American business hands. McQuaig quoted a Jane Meyer New
Yorker article explaining winning contracts in Iraq is the realm of
Dick Cheney, and "Anything that has to do with Iraq policy, Cheney is
the man to see." She should have added anything to do with running
America, Cheney's also the man to see."
Washington always acts in Big Oil's interest, but the current
administration is closer to the industry than any previous one. It's
staffed and run by former oil and other energy industry executives,
including the President and Vice-President. Oil is central to US plans
for world dominance, but Iraq is only one part of the overall
international oil picture, though the most important one of all.
Vitally important as well is OPEC, run by its member nations and seen
as a threat to Big Oil interests unless co-opted.
McQuaig explained ever since it became an important player in the
mid-1970s, Washington tried to "undermine its effectiveness and weaken
its unity." It succeeded because OPEC hurt itself and became less of a
market influence after the early 1980s. One Wall Street analyst said
"it was on its deathbed" by the late 1990s, until it suddenly began to
revive. One man made it possible by 2000, "sav(ing) OPEC" - Venezuela's
Hugo Chavez. How it happened is covered below.
Revolution and Ice Cream in Caracas
McQuaig reviewed Hugo Chavez's dramatic rise to become Venezuela's
president, his Bolivarian Revolution, the transformation of his
nation's oil policies, and his key role in the resurgence of OPEC.
Chavez was first elected president in December, 1998 and assumed office
in February, 1999. He proceeded to hold a national referendum so his
people could decide whether to convene a National Constituent Assembly
to draft a new constitution to embody his visionary agenda. It passed
overwhelmingly followed three months later by elections to the Assembly
to which members of Chavez's MVR party and parties allied to it won 95%
of the seats. They then drafted the revolutionary Constitucion de la
Republica Bolivariana de Venezuela. It was put to a nationwide vote in
December, 1999 and overwhelmingly approved changing everything for the
Venezuelan people.
The Constitution established the foundation and legal framework for
President Chavez's revolutionary vision for structural change. He's
since transformed his nation into a model participatory social
democracy serving the needs of all Venezuelans instead of the
privileged few alone the way it nearly always had been in the past. It
allowed the people to choose their leaders and gave them unimaginable
benefits like free quality health care as a "fundamental social right
and....responsibility of the state....to guarantee it." It banned
discrimination, established the principle of participatory democracy
from the grassroots for everyone, guaranteed free speech, a free press,
free elections, equal rights for indigenous people, and mandated
government make quality free education available for all to the highest
levels, and much more. Venezuela under Hugo Chavez would never be the
same again, and the great majority of Venezuelans won't accept it any
other way.
Chavez had another goal as well - to resuscitate OPEC, give oil
producing states more power over their own resources and be fairly
compensated for them through prices they controlled, not Big Oil. It
would thus allow him to implement his Bolivarian Revolution from the
greater revenues he'd get from a stronger, more unified organization of
11 significant oil producing nations. Chavez became a mediator to do it
and undertook a whirlwind tour of member states to sell his plan to
their leaders.
McQuaig explained his idea was based on the simple notion that OPEC
needed stable prices kept within a "price band" Chavez proposed to be
between $22 - $28 a barrel that today seems low. It wasn't then with
oil prices down around $10 a barrel and less. Making the plan work was
doable providing all OPEC nations agreed to abide by it and not cheat
as was common for added revenue. The idea was for a united OPEC to cut
production whenever prices dropped below its lower band and increase it
above the upper one, thus letting basic supply and demand forces do
their work. Chavez proposed an OPEC summit in Caracas in September,
2000, all its nations agreed to come, and after discussion signed on to
implement the plan.
McQuaig summed up Chavez's achievement saying: "After being on the
verge of extinction only a year earlier, OPEC was very much alive" and
still is. Chavez's vision was "shaking up the international oil scene
(but by doing it made) himself persona non grata in Washington." He's
been at it ever since with his revolutionary social programs endearing
himself to Venezuela's majority poor and working population who now
receive essential services unheard of before and unimaginable in
America now. He also promotes a bold new trade initiative called ALBA -
the Bolivarian Alternative for the Americas. Unlike Global North
one-way neoliberal schemes, it's an innovative "fair trade" alternative
based on complementarity, solidarity and cooperation among
participating Latin American states.
Chavez's policies are working. He built alliances with regional states
and is using his nation's oil revenues responsibly with impressive
results. He cut poverty in the country to around 25% of the population
(when benefits from state-funded social programs are factored in)
compared to its 1998 and 2003 post-management-led oil lockout high of
62%. Unemployment also fell from 20% in early 2003 to 8% in May, 2007,
and inflation at, current high levels, is dropping as well with
government measures being taken to combat it. All the while, business
is booming with economic growth the highest in Latin America. It
averaged around 10% or more per quarter for over the past three years,
and finance minister Rodrigo Cabezas told Venezuela's state-run ABN
news agency the country will exceed 8% growth this year. It's coming
mainly from the private sector that added over 1100 new businesses and
industries in 2005 and 2006.
Nonetheless, Chavez is Washington's Latin American "enemy number one"
having tried four times to remove him and failed. McQuaig covered the
dramatic two day CIA-orchestrated April, 2002 aborted coup. It caused
mass street outrage and unwillingness of the country's military to go
along. Chavez returned to office, survived an economically devastating
oil management-led industry lockout, and resuscitated his nation and
people impressively enough to win reelection as president last December
by a nearly 2 - 1 margin.
McQuaig sat down with him for an extended two and a half interview at
the Palacio de Miraflores (presidential palace) in Caracas in March,
2004. Chavez eschews pomp and remains true to his part black, part
Indian roots. On December 3, 2006 election day, he drove himself to his
polling station in his signature red Volkswagen, accompanied by his
grandson. For his interview with McQuaig, he showed up casually
dressed, and near the end of the session ordered ice cream for his
guest that came in the form of chocolate sundaes topped with cherries.
Addressing questions posed, Chavez stressed the Bush administration was
"invaded by madness." He's also certain it tried ousting him in 2002,
was behind the oil management lockout, the August, 2004 staged recall
referendum to remove him that flopped badly, and several attempts to
kill him with more planned. He covered much more as well, including his
desire for closer cooperation among Global South nations in their
common interest to shake off the yoke of longstanding Global North
neocolonial domination.
McQuaig also briefly covered America's involvement with Venezuela after
oil was discovered there early last century. Ever since, Venezuela's
oligarch elites and foreign oil interests collaborated to see "the
country's immense oil wealth largely disappeared into private hands,
both at home and abroad." There were occasional flirtations with change
with leaders like Juan Pablo Perez Alfonzo (a founding member of OPEC)
asserting more control over his nation's resources. Aligned against
him, however, were powerful business interests, and little success was
achieved. Although the nation nationalized its oil industry in the
mid-1970s (along with most other oil producing countries), its state
oil company PDVSA was run by Venezuelan managers deferential to foreign
oil interests, mainly US ones.
Chavez is changing that and making impressive progress doing it, but
still has miles to go toward establishing his social democracy (or
socialism) for the 21st century. His task is enormous and involves no
less than reversing generations of entrenched privilege and
institutionalized corruption in a nation beholden to capital interests
closely tied to Washington. He has two vital things going for him
though - mass people-power support determined to keep him as President
as long as he wants the job and the country's military on board as
well. If Chavez can survive Washington's aim to remove him, he may
remain Venezuela's leader for many years to come.
>From Coffins to World Destruction
Here McQuaig dealt with one of the most vital issues of our time
getting increasing attention but few efforts to address meaningfully.
Today, global warming looms large as an urgent, pressing challenge
demanding action now. It emerged on the political radar in the
mid-1980s and got world attention at an international scientific
conference in Toronto in June, 1988. Conservative Canadian Prime
Minister Brian Mulroney, an unabashed corporatist, was its opening
speaker. Astonishingly, he sounded an alarm saying "humanity is
conducting an unintended, uncontrolled, globally pervasive experiment
whose ultimate consequences are second only to nuclear war."
Early persuasive evidence of trouble ahead began surfacing back then.
Today, it shows conclusively that human activity in modern industrial
states is warming the earth's air and surface from fossil fuel burning
greenhouse gas emissions causing:
— arctic ice cap melting;
— rising sea levels;
— changed rainfall patterns;
— increased frequency and intensity of weather extremes like floods,
droughts, killer heat waves, wildfires, and hurricanes and cyclones;
— water scarcity;
— agricultural disruption and loss of arable land;
— as many as one-third of plant and animal species extinct by 2050 by some credible estimates; and
— increasing disease, displacement and economic losses from extreme
weather-related events, lowering of ocean pH, reductions in the ozone
layer, and the possible introduction of new phenomena unseen before or
never extreme enough to threaten human life or ecological
sustainability that will when we experience them.
There's no longer a debate in the scientific community on global
warming. The near-majority consensus is the urgency to address it. It
was almost as true in 1990 when McQuaig noted the independent
Intergovernmental Panel on Climate Change (IPCC) met. It was headed by
Robert Watson whose credentials included having been a senior NASA
scientist. IPCC's first assessment report powerfully stated the
problem. It said the "greenhouse effect" is real and the earth's
surface has become noticeably warmer since the inception of the
Industrial Revolution in the 19th century.
IPCC was even grimmer in a 2007 report suggesting a worst case scenario
of "devastating harvests, dwindling water supplies, melting ice and
loss of species (that likely understate) the threat facing the world."
The London Independent's Information Environment Editor, Geoffrey Lean,
made things sound even worse in his article titled "Global Warming Is
(accelerating) Three Times Faster Than Worst Predictions" based on new
authoritative studies. One is by the US National Academy of Sciences
(NAS) showing CO2 emissions increasing 3% a year now compared to 1.1%
in the 1990s. It's causing seas to rise twice as fast and Arctic ice
caps to melt three times faster than previously thought. Another grim
study was by the University of California's National Snow and Ice Data
Center. It showed "Arctic ice has declined by 7.8 percent over the past
50 years, compared with an average by IPCC computer models of 2.5 per
cent."
Global warming scoffers abound in a state of denial. They're in
corporate boardrooms, halls of government and a few co-opted climate
scientists and some in academia willing to sacrifice their integrity
for whatever benefits they get in return. They say the evidence is
inconclusive, more study is needed, and the financial costs of action
will be prohibitive and hugely damaging to the economy. Watson's
response is "The economic costs of inaction may be (far more)
prohibitive," and many economists doubt addressing the problem will be
harmful at all. McQuaig noted 2500 in the profession believe "(S)ound
economic analysis shows that there are policy options that would slow
climate change without harming American living standards, and these
measures may, in fact, improve US productivity (more than making up the
difference)."
McQuaig then mentioned a second 1995 IPCC report making their case even
stronger, but not as strong as their latest one. Twelve years ago it
said increasing atmospheric carbon dioxide buildup is seriously
altering the world's delicate ecosystem. Since then, we got an
important, if greatly inadequate first step, with the enactment of the
Kyoto treaty. It went into effect in February, 2005 after 141 nations
signed it, absent one vitally needed one to make it work - the US when
the Bush administration brazenly withdrew from the process in March,
2001, barely after assuming office.
No other administration in US history is more closely aligned with
dominant corporate energy interests showing they call many of the shots
in Washington. One energy giant especially stood out in the rejection,
and McQuaig put it this way: Giant "Exxon....found a friend. The most
powerful government on earth had linked up with the richest (and likely
most influential) company on earth - and the world no longer seemed
invincible."
One of the leading causes of global warming is a popular product first
introduced in the early 1980s, gained popularity in the 1990s, and now
dominates the passenger car business. It's the so-called sport utility
vehicle, or SUV, that McQuaig said has "less to do with sportiness and
glamour, and more to do with security in an age of fear." She refered
to them as a "mobile version of a gated community (with a) kind of
me-first aggressiveness" pushing everything out of its way. Thanks to
the power of advertising, their sales soared from a humble start. They
now account for one-fourth of new car sales despite their cost, poor
fuel efficiency, and the fact that families got along fine without them
until Madison Avenue creative geniuses convinced millions they couldn't
live without them.
Here's the problem. SUVs are huge gas guzzlers, and the transportation
sector accounts for over one-fourth of US greenhouse gas emissions.
SUVs are exempt from so-called CAFE standards referring to "corporate
average fuel economy." The result is they emit around 40% more
greenhouse gases per vehicle into the atmosphere causing enormous
damage. And no one needs these vehicles in the first place except the
auto industry earning huge profits selling them and not about stop
voluntarily. Like the energy industry, the auto sector has powerful
friends in Washington as well seeing nothing changes that hurts them.
The global warming issue is so serious it must be addressed and can be
if Congress gets around to mandating it with a friendly administration
willing to go along. One answer is greater efficiency to achieve what
automakers won't address - making vehicles burn less gas using
technology now known to exist. McQuaig noted the Union of Concerned
Scientists (USC) said it can be done with current technology, and its
engineers did it with their own SUV design that's 30% more fuel
efficient than production models. Auto makers continue increasing
vehicle efficiency but use it for more powerful engines and other new
design features increasing profits. They reject fuel efficiency citing
the cost, but it really comes down to applying their technological
expertise where it produces the greatest return.
McQuaig summed up the situation saying it's clear "the voluntary
approach won't work with fuel efficiency." With stronger mandated CAFE
standards for cars and light trucks, including SUVs, oil consumption
will drop dramatically. US autos of all types are now projected to
consume 12 million barrels of oil a day by 2020. With easily attainable
CAFE standards, consumption could be cut to 7.5 million barrels or a
40% savings. The Bush administration made things worse, not better, by
adding a generous new tax measure favoring SUVs in its 2003 $350
billion tax cut. It allowed the self-employed to deduct the cost of a
SUV purchase, thereby making them more attractive to all kinds of new
customers like doctors, lawyers, accountants, the corner druggist, or
anyone able to claim self-employment.
There's hope for change, however, based on recent Senate action. On
June 21, that body passed the first comprehensive bill on new CAFE
standards in over 20 years, and it was a bipartisan effort. It wasn't a
perfect one but did raise the fleetwide average fuel efficiency
standards for all cars, trucks and SUVs by 10 miles per gallon over 10
years or from 25 to 35 miles per gallon by model year 2020. So far, no
action is scheduled in the House so it remains an open question what's
ahead along with what can be expected if final legislation reaches an
obstructionist President.
The Great Anaconda
Enter the Oil Trust and man who built it and himself into a hugely rich
and powerful business titan and king of the original "robber barons" -
John D. Rockefeller. None had more power and wealth or used it more
ruthlessly than this corporate predator whose central aim was crushing
all competition and making himself omnipotent in the growing oil
industry. He did it by "employing a mix of enticement, threats,
coercion, double-dealing, lying, cheating, bullying and ultimately
using (his Oil Trust's) massive financial resources to crush opponents"
as McQuaig explained it. Sounds about the way corporate giants operate
today, except they now have friendly governments and courts making it
easy for them. John D. had to work for his power and wealth starting
from the bottom and building his oil empire from the ground up.
Early on, he spotted an opportunity to do it shortly after oil was
first discovered in Titusville. He and a partner first invested in an
oil refinery in Cleveland that became one of the city's largest. He
then bought out his partner and started a second operation, opened an
oil-selling company in New York, and consolidated everything into what
he called Standard Oil Company. From there, McQuaig traces his rise to
the business heights he achieved that included entering into a phony,
far-reaching "combination" with major railways called the Southern
Improvement Company. It was a scheme for preferential rebates and
eliminating competition.
The story goes on to cover a four decade-long account of how
Rockefeller built and consolidated his empire, crushing competition
along the way ruthlessly but effectively. It came to a head in a New
York City courtroom in 1907 when Theodore Roosevelt-picked lawyers went
head-to-head in what McQuaig called "a titanic legal battle." In the
end, the government won when the Supreme Court agreed with an earlier
guilty verdict. It gave Standard Oil six months to divest all
subsidiaries that quickly dismembered the giant company into a number
of smaller but still large entities. The largest retained half the
value of the original conglomerate. It was Standard Oil of New Jersey,
now giant ExxonMobil, the largest, richest, most powerful company on
earth and still one of the most predatory and ruthless in the spirit of
its founder.
Today, the oil industry is more powerful than ever. It remains "a
tightly knit club" through its extensive interlocking corporate ties
and a cozy relationship with all administrations. None, however, are
more accommodating than the current one run by former oil men and
staffed by many energy industry officials making policies favoring them.
How Did Our Oil Get Under Their Sand
McQuaig continued the story as Rockefeller's spawned corporate empire
began eyeing opportunities abroad. There were plenty around with the
Middle East as ground zero holding two-thirds of today's proved
reserves with most of Iraq's still uptapped and uncounted. She
explained by the early 1950s international oil companies gained
effective control of the region's oil and sought to get back what they
lost when countries like Iran nationalized their industries to get a
larger share of their own revenues.
Mohammed Mossadegh was its force as the nation's democratic leader. He
no longer would tolerate the special concessions British-owned
Anglo-Iranian Oil got in 1901 and had up to his tenure. It greatly
advantaged Britain leaving Iran only a sliver of its own oil wealth.
His government changed things by nationalizing the company, causing the
British to feel he stole their property, that, in fact, belonged to
Iran. In response, the international oil companies reacted together and
imposed a worldwide boycott on the country's oil. It succeeded by
devasting Iran's economy, cutting its oil revenue from $400 million in
1950 to less than $2 million in 1952. A Dwight Eisenhower-approved
first ever CIA coup followed in 1953. It toppled the Mossadegh
government, returned Shah Reza Pahlavi to power, and began his 26 year
tyrannical rule that, by all accounts, was as repressive as Saddam's
and far less socially accommodative.
McQuaig called the coup "a defining moment in the Middle East." It
"became a powerful rallying point for anti-Western nationalism. It was
embodied in Gamal Abdel Nasser in Egypt whose advocacy of Arab
sovereignty and willingness to defy the West made him a hero throughout
the region. It also arose in Iran in the 1970s that resulted in the
1979 revolution. It deposed the Shah, installed fundamentalist Islamic
rule in his place, and sparked an anti-Western fundamentalist movement
across the region.
McQuaig also traced how oil was discovered early in the last century in
the Middle East with the international oil cartel moving in to
capitalize on it. She detailed the wheeling and dealing that went on
with oil giants jousting among themselves and with rulers of the
countries whose oil they wanted favorable terms on to exploit. These
powerful companies mostly worked in collusion carving up world oil
markets and fixing prices among themselves to their advantage.
McQuaig described how three of the giants, Shell, BP and Exxon, met at
Achnacarry Castle, Scotland in late summer, 1928 to end price
competition and stabilize world markets. Their leaders "hammer(ed) out
an agreement in writing that set the course for the international oil
order for decades to come," lasting through the early 1970s. It was not
to compete, but rather to set quotas, maintain existing market shares,
cooperate in sharing facilities, and avoid surplus production to keep
prices stable.
They brought in Texaco, Gulf, Mobil and Atlantic to tighten their grip
on world markets and eliminate competitors by acquiring them. The idea
was to assure world production grew at a steady pace, and oil shortages
and gluts were avoided. The cartel was in charge reaping enormous
profits from their cozy arrangement. It was especially lucrative in the
Middle East where oil is easily accessible and production costs very
low. It's hard believe looking back to when Saudi oil sold for $1.80 a
barrel, but easy to understand with production costs in the Kingdom at
just 8 or 9 cents leaving over $1.70 profit with most of it going to
the giants.
Things began changing when Libya's King Idris "was the first to figure
out how to avoid becoming yet another powerless country in the oil
companies' harem." He began using independents outside the cartel.
Current Libyan leader Mu'ammer al Qaddafi took power in 1969 and upped
the anti further demanding a 40 cent increase in the country's share of
the revenue. He got it and broke the cartel's power to control the oil
game. At the same time, he rewrote the rules in place to that time. As
McQuaig put it: the "aura of (cartel) invincibility was shattered.
Inside the harem, things would never be the same again."
The Harem Takes On the Sisters - The Rise of OPEC
The "Libyan breakthrough" turned out to be prologue for 5 original oil
producing member nations (that became 11) to assert control of their
own resources through OPEC that was founded in 1960 but had no
effective power until the 1970s. McQuaig reviewed its history
explaining it "was the brainchild of two men - Juan Pablo Perez Alfonzo
in Venezuela and Abdullah Tariki in Saudi Arabia. Alfonzo was given
responsibility for his country's oil affairs after 1945 and set
"guidlines (to redefine) the traditional (one-way) colonial
relationship" the oil cartel had with his country. A 1948 military coup
disrupted his plans until he reemerged as oil minister under a newly
elected government with much more ambitious plans in mind. His idea was
for oil producing states to control the international market for their
essential product, and why not. It's their oil. The idea was simple.
Individually, the countries were weak, but together they had collective
strength.
Abdullah Tariki had similar ideas in Saudi Arabia. He opposed the oil
cartel believing oil producing nations should control their own destiny
and assert their sovereign rights. Tariki was highly educated and his
country's only university trained oil geologist. He became minister of
oil affairs for the country's eastern province that was the location of
the cartel's Aramco important Ghawar oil field operations. In that
capacity, he saw how little revenue Saudis retained, compared to the
oil giants, and, as a result, wanted to change the rules. How? By
having Arab oil states unite to assert their collective strength.
McQuaig noted, Tariki understood the advantage of making "common cause
with Venezuela." He wanted and got a secret gentlemen's agreement
between the two countries in 1958 that "constituted the first seed of
the creation of OPEC" that was later born in Baghdad in September, 1960
with five original members having 80% of oil exports among them - Saudi
Arabia, Venezuela, Iran, Iraq and Kuwait.
It was a beginning but not as auspicious as conceived as in March, 1962
Tariki lost his job as Saudi oil minister. It was after King Faisal
decided to tilt more toward Washington and adopt more Aramco favorable
oil policies as the way to do it. Tariki was out, and the more
accommodating Sheikh Zahi Yamani was in. McQuaig described him as a
"charming, urbane, thirty-two year old lawyer....who loved New York and
Western culture," and enjoyed lots of it in his new job. Alfonzo in
Venezuela lost his job as well, and OPEC would never live up to his
vision for it. However, McQuaig explained "it would soon at least
ensure that its members were admitted to the feast."
Things then changed dramatically in 1973. Supplies were tight, and the
notion that oil producing nations should control their own resources
gained prominence in the Middle East. Industry nationalizations began
occurring, and in October, 1973 OPEC nations demanded much higher
prices. They got them at a time of anger over the West's support for
what became known as the "Yom Kippur War." Egypt and Syria fought it
against Israel between October 6 - 26 and almost won, save for the help
from America that turned Israeli defeat into victory. People old enough
to remember recall the energy crunch and long gas lines when prices
rose from $3 dollars a barrel in steps to $11.65 and Saudi Arabia cut
off shipments to the US until March, 1974.
Angst and rising prices in America affected politics in Washington, but
the oil companies loved it. Industry profits rose "beyond anything
they'd seen in the previous thirty years (raising the speculation) what
role the companies" may have had orchestrating the whole scheme that
benefitted them and oil producing states hugely at the expense of oil
consuming nations. As borne out later, they played an important role.
In the face of recession, demand fell and production was adjusted down
to meet it while keeping prices high. They're now around $70 a barrel
that in 1973 dollars would only be in the mid-teens and would have to
hit $100 a barrel to match the $38 dollar price in 1980.
McQuaig noted, all in all, "as pressure tactics go, the (1973 - 74) oil
embargo was pretty mild (and long) gas lines may have been annoying,
but nobody died in them." Of greater significance was where the extra
revenue ended up. It was in "the wrong part of the world" with it
rising from $22 billion in 1973 over fourfold to $90 billion the
following year and far higher after the huge additional price hikes
following the 1979 Iranian Revolution. It made oil producing states
rich but got them to recycle much of their surplus back into Western
investments, and in the case of Saudi Arabia, in particular, into huge
dollar purchases of US weapons as well.
McQuaig then explained OPEC's reformist zeal waned after Saudi King
Faisal's 1975 death that had "far-reaching consequences for both OPEC
and the world." New Saudi King Fahd tilted toward a "special
relationship" with Washington and became accommodating on the amount of
oil it would produce to please his powerful ally responsible for his
security. It meant OPEC's power as a unified force was gone.
King of the Vandals
In 428 AD, the title belonged to Geiseric the Lame (or Genseric) who
ruled for 50 years and transformed his Germanic tribe into a major
Mediterranean power after he invaded North Africa to pillage and
plunder. A more notable predator, Alexander the Great, did it a century
earlier and others like the Ottomans, Mussolini and Hitler took their
turns later on. Fast forward to today and you get the picture about a
modern-day plunderer doing the same thing for much greater stakes than
Genseric or Alexander could have imagined.
For the past three decades, Washington's attitude toward the Middle
East hardened with some in the capitol believing America has a
birthright to the region's oil, and we'll send in the Marines any time
we choose to claim it. So we have, but with consequences partly
anticipated in a 1975 US Congressional Research Service study assessing
the difficulties of occupying the region for its resources. McQuaig
explained it concluded "seizing oil installations intact, securing them
(possibly for years), operating them without the owners' assistance,
and guaranteeing safe passage overseas of supplies and petroleum
products....would be possible only if there were minimal damage to oil
installations and no Soviet armed intervention" intervened, and no
armed resistance now.
At first, the strategy was to arm and rely on local powers, like Iran
under the Shah and Saudi Arabia, to serve as proxy forces along with
neighboring Turkey and Israel. Chomsky notes these nations were to be
what Nixon called our "cops on the beat - the local gendarmes" to keep
order in the neighborhood. We still have them mainly in Israel and
Turkey, but after the 1979 Iranian Revolution the decision was taken to
assume a more direct role in managing our regional interests that moved
us "a step closer to establishing...military control over the area."
The Carter Doctrine, noted above, threw down the gauntlet in 1980. It
led to the establishment of the Rapid Deployment (flexible, quick
response) Force (RFD) that became the US Central Command (CENTCOM) in
1983, focused mainly on the oil rich Middle East.
McQuaig also reviewed the rise of Saddam Hussein in Iraq. It began with
a violent Baathist party coup in 1963. Saddam took part in it that led
to his assuming power in 1968. He was a nationalist unwilling to sell
out Iraqi sovereignty to Western interests making him a target from the
start. The lord and master of the universe tolerates no outliers, and
Saddam was a considerable one. He began nationalizing Iraq's oil fields
in 1972 and finished doing it in 1975. The oil cartel saw this as "an
unpardonable crime" requiring action that was delayed by the Iran -
Iraq war of the 1980s. The Reagan administration saw an opportunity and
used Saddam against its greater Iranian enemy hoping they'd both
destroy each other, and we'd step in and pick up the pieces.
Once the war ended in 1988, things changed and plans were drawn for
Saddam's removal that resulted in the 1991 Gulf war, 12 years of hugely
destructive economic sanctions, and the March, 2003 invasion and
occupation. US control of the region's oil as the goal was already
explained above because it has the mother lode amount of world supply,
and by 2010 Muslim states will have about 95% of remaining light oil.
Bush administration belligerency has now raised the stakes. It
increased Muslim anger against the West, Washington in particular. If
it continues growing, the longer term odds are that America's grip on
the region will slip and could end up lost.
It's hurtling that way today as the prospect of war with Iran looms
that may be a nuclear one. If it happens, it may engulf the whole
region and entire Muslim world. CIA's assessment of the prospect is
blunt. If the US attacks Iran, Southern Shia Iraq will light up like a
candle and explode uncontrollably throughout the country. It will also
affect the Shia oil rich part of Saudi Arabia producing a tsunami of
Shia rage everywhere that may unite the entire Muslim world in fierce
resistance to America that would have very dire consequences when it
comes to oil and the interests of Big Oil giants that prefer peaceful
negotiations to open confrontation they fear will make them big losers
in the end. That's the state of things today thanks to a modern day
Genseric. He lasted 50 years. Mr. Bush may not finish out his term in
office with growing cries for his head.
Vroooooom
It's McQuaig's last word on the subject referring to Americans insane
belief we have a birthright to drive hugely gas-guzzling "18-wheelers
that accelerate like racing cars" and shove the world out of our way
doing it. She focuses on Bush administration policies in the wake of
the 9/11 attack. It changed everything but left the most important
issues unaddressed. There's little debate over how centrally important
oil is that government and industry focus on but the major media
ignore. Controlling world supplies tops the list of strategic aims
starting in the Middle East and headquartered in the richest of prizes
in Iraq. There's no chance whatever we'd be there if the country's main
export was olives instead of oil. Then there are nonsensical issues of
removing a dangerous dictator and bringing democracy to the region in
the form of a humanitarian intervention. Unmentioned is America does no
such interventions, and our aim is to subvert democracy, not bring or
support it. That's how the rules of imperial management work.
There are further vital issues unaddressed and unmentionable in public
as well. What's the real motive behind America's "war on terrorism"
that's quite different from the fictional media account we've gotten
since it was launched right after the 9/11 attack. Few in the West know
"Enemy Number One" bin Ladin was a CIA asset (not an agent) recruited
through Pakistan's ISI to fight the Soviets in Afghanistan in the
1980s, and the idea one sickly man in a cave outwitted the entire $40 -
$50 billion-a-year American intelligence establishment is preposterous.
He and Al-Queda have been assets ever since. They're used to scare the
public to death and provide a pretext for the Bush administration's
permanent war on the world and against the homeland. It's in the form
of hugely bloated military budgets and adventurism, oppressive police
state laws and loss of civil liberties, the greatest ever wealth
transfer in history from the public to the rich, and the systematic
dismantling of what remains of an imperfect social state Americans were
once proud of nonetheless. That's all sacrificed for the greater aim of
unchallengeable world dominance and an unrestrained use of military
power maintaining it. It's all for the sake of making the world safe
for capital and limitless amounts of energy resources needed to make it
hum and grow.
We know incontrovertibly the Afghan and Iraq wars were planned well in
advance of September 11, 2001 to kick things off. We were practically
signaled they were coming in 1998 by the Project for a New American
Century schemers. They stated their wishes for a revolutionary hard
line transformation of the nation that would be long in coming "absent
some catastrophic and catalyzing event - like a new Pearl Harbor" that,
low and behold, happened that fateful day. The "shock and awe" on
Afghanistan began four weeks later, moved to Iraq in March, 2003, never
stopped, and now everyone's paying for it and targeted if we get in the
way.
The danger today is greater than ever as the Bush regime may have more
ominous schemes in mind to bail itself out of its disastrous Middle
East adventure. It may even be extreme enough to be unthinkable - using
another major terror attack some analysts and DHS Secretary Chertoff
think is inevitable as a pretext to declare martial law in the name of
national security and end a functioning democracy as we know it.
Consider that compared to our claimed birthright to control and consume
limitless amounts of the world's dwindling resources and emit enough
greenhouse gases to destroy it way in the future that's someone else's
problem. McQuaig concluded her important book explaining that
"efficiency is our god (but) when it comes to the engine of the modern
economy - energy" - efficiency is discarded. Workable solutions abound
at least effective enough to mitigate our wasteful consumption habits,
but volunteer methods to achieve them won't work. Mandating them along
with convincing the public they're important is the only approach that
can succeed and will if implemented. If they are, the savings will be
dramatic and enormous.
If not, we face an eventual ecological calamity too dire to imagine. In
addition, they'll be huge economic costs according to one analyst
McQuaig cited. He believed it could cost America 1 - 2% of GDP annually
and the world $1 trillion a year at least and likely much more. And it
will only get worse in the out years. Global warming is far and away
the single greatest environmental threat to the planet, second only to
a nuclear winter. Rich and poor alike will be victims because "We're
all in the big greenhouse together." It's the moral and survival
challenge of our age with no time to waste implementing a solution.
Everyone's future depends on it as does ending our resource wars that
will destroy us if we don't. "It's (all about) the Crude, Dude," and we
better not forget it.
Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.
Also visit his web site at sjlendman.blogspot.com and listen to the
Steve Lendman News and Information Hour on The MicroEffect.com
Saturdays at noon US central time.