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Iran: Follow the Money

A post by Maynard

If anyone wonders why Iran throws these saber-rattling tantrums at regular intervals, keep in mind that it's a moneymaking process. Anything that threatens to disrupt the global oil supply — such as a conflict involving Iran — causes an immediate jump in the price of crude oil. Last summer the price reached a peak of $80 a barrel. This fell over time to a January low of slightly above $50. Now it's spiked back up to $65. This is money in the bank, and a lot of it, for Mr. Ahmadinejad and his merry band of cutthroats. Don't think they don't know it.

Iran needs the money. You may be surprised to learn that there's a gas shortage in Iran. The Iranians may be enriching uranium and swimming in crude oil, but they can't refine gasoline. The electorate demands cheap gas, so the government imports it and sells it at a loss. This, combined with other free-spending programs, is pushing Iran towards insolvency. If this goes on, the government will be forced to ration gas or raise domestic prices. Neither option is politically acceptable.

(People all over the world expect free goodies from the government. This seems to be a unifying theme of humanity.)

So why did Iran grab those British marines? Because, in the view of the Iranian government, a crisis creates more pluses than minuses. The oil revenues will swell, and punitive measures will be minimal.

Note Tammy's earlier post of Newt Gingrich's suggestion that Iran's supply of refined oil be threatened. If the Iranians truly believed their belligerence would provoke that response, they would likely find an excuse to quietly back down.

On the other hand, the economic weakness of Iran may provide the leverage to eventually bring down its government without raising the level of conflict. I'm not optimistic on this point, but I won't rule out the possibility.

Posted by Maynard · March 31, 2007 02:35 PM · Permalink
Maynard Post | Tyrants | War on Radical Islam

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Comments

Newt was right. Give them a period of time and let the bombing of the refinery commence.

Posted by: Lib85 [TypeKey Profile Page] at March 31, 2007 04:40 PM

This whole thing is driving me nuts. More strongly worded letters, and even a condemnation from Bush, all of which mean nothing. No country has ever listened to any of those 'strongly worded letters' (SWL), so why would Iran comply? The recent history would be enough, one would think, to understand that the Government of Iran has not one care what the world thinks of it, and it also understands that there will be NO cost to Iran for these actions. Iran never paid a price for holding our citizens in 1979-1980, why the heck would they think this would be any different?

Are we really doomed to continue on this path? Is there not anyone strong enough to stand firm, and bring us all together, first as a Nation, then as Humans, and denounce what radical islamists are doing? Or all we all so fat, dumb, and happy in our own lives that we actually don't care?

Posted by: Stonemason [TypeKey Profile Page] at March 31, 2007 04:44 PM

Our President has spent the last 2.2 years playing Jimmy carter. From supporting ethanol to condeming the Danes and lauding the terrorists 13 months ago. He will continue to lie and talk tough but everyon knows that like Jimmy he will do nothing.
Churchhill did not bother with the LoN when talking about crushing the Socialist Labor Party. Once PM he just went out a did it - with a lot of "Blood, sweat, and tears"!
Remember in Oct last year Bush said Rummy would be Sec Def til 09! Bush lies and the whole world knows it and ignores him.
If we were going to do anything postiive the time was 8 days ago. It is way too late now; outiside of all out war.

Posted by: Rod [TypeKey Profile Page] at March 31, 2007 06:32 PM

Passivity breeds contempt. Inaction or silence connotes guilt or cowardice. Either way, the beasts are emboldened. The Fall of Western Civilization occurs right before our eyes.

Posted by: helpunderdog [TypeKey Profile Page] at April 1, 2007 09:22 AM

Tammy you are100% right on Iran,they know that their pitiful government is teetering on the brink of revolution by their own people.We only get to see the radical masses that roam in the streets shouting death to anything that will turn one of our liberal cameras on to film them.I truly believe that takeing out their only refinery or at least telling them that's about to happen will definately change the minds of the so called leaders and if it does'nt then the action should be initiated at full speed.

We are no longer in a position to take threats idlely,we must take a proactive stance again on foreign matters that concern the freedoms of peace loving peoples around the world and any country that openly speaks of the annillation of another country such as Iran's policy towards Israel must be held accountable for their threats by the world community and if the U.N. will not condemn and take action then it is left up to us the good old U.S.A. to settle the matter the old fashioned patriotic way.

By the way sorry to here about Sadie,she was a beautiful animal and I know you miss here alot,just remember that grief is our way of showing the ones we lose that we will always care and remember them forever.will be giving something to the kitty,your radio show is the best for both intelligent and humorous topic,thanxs for stimulating me on the way home from work everyday ."YOU GO GIRL"!

Posted by: Big star [TypeKey Profile Page] at April 1, 2007 01:36 PM

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