Wednesday, December 17, 2008

One Benefit To All Of Us

I read an article that Dick Morris posted on his website ( about the recent collapse in the world economy; more specifically, about the drop in oil prices. This is putting great strain on some of our enemies around the world. He goes on to break down how the downward freefall of oil prices is crippling many of these economies. Well, it could not happen to a better group of people.

We all know that most dictators hold power through a combination of fear and handouts. Fear is a wonderful way to keep people in line. However, it works much better when you can appease the majority of the population with handouts (sound familar-if not wait a year and you will know what I mean). The collapse in the economies is putting dictators in Iran and Venezuela in grave jeopardy of losing power. There is a stirring within their countries which could create an overthrowing of the government. To me, this is a wonderful idea that might be warranted in this country (lighten up! it was a joke..maybe).

Russia is experiencing similar circumstances. These oil dependent nations are now faced with receiving $20-$40 less a barrel than they planned on. At the same time, production is having to be slashed since global demand is still plummeting. This really warms my heart. Today, we say the price drop 8% in spite of OPEC announcing a cut of 4.5 million barrels a day. Again, it couldn't happen to a finer bunch of people.

We are too beholden to terrorist nations which hate us. Our dependence on foreign oil causes us to fund their initiatives which they use against us. Notice how all the terrorist caught in the last 10 years were from the Middle East. While it might purely be a coincidennce, it is not likely. That area is a hotbed for terror and Anti-American beliefs. Giving them $700 billion per year so that we can drive around in SUVs getting 14 mpg is ridiculous. At least now that figure is cut to $300 billion and going lower. A drawn out recession could totally cripple some of those nations, which survive solely on oil. I, for one, hope our government is not going to offer them a bailout.

Economies go up and they go down. I remember the outrage in the 80s when the Japanese were buying up everything in sight. They invested in anything they could get their hands on. If it had a famous address attached to it, bet the ranch some Japanese company owned it. I remember the tipping point when they bought Rockfeller Center in New York. Everyone watched the lighting of the Christmas (screw off you secular bastards; it's Christmas) tree knowing everything around it was owned by the "hated" Japanese.

Fast forward 20 years. The Japanese economy crashed and is mired in a decades long recession. They cut interest rates to zero (now you know where we got that idea from) to no avail (a sign for us that we won't heed). They had to sell or walk away from all their holdings. Now, proportionly speaking, the Japanese own very little within the United States.

Today, it is the Arabs who are the purchasers. They had all the money from the incredible oil run over the last couple of decades. Well, that is all coming to a crashing halt. We are going to see a repeat of the Japanese; they will have to liquidate their holdings to support things back home. Of course, then we will have to find another suitor to purchase our country. Perhaps one of these days American assets will actually be owned by Americans.

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