One step at a time
Posted by aogWednesday, 30 April 2003 at 11:25 TrackBack Ping URL
So the US is finally pulling out of the Saudi entity. Contrary to the nay sayers it looks likes President Bush is moving in his slow but deliberate way toward cutting the Saudi entity loose. I suspect that there will now be complaints that Bush is giving in to the Caliphascists by leaving, but I don't find that complaint compelling. We should do what is in our best interests regardless of whether it is an objective of the Caliphascists.

Something to think about is that, with Iraq in the US corner, any disruption of oil flow from the Saudi Entity is likely to impact Europe far more than the US. This is mitigated by the fact that oil is fungible so disruption anywhere raises the prices everywhere. However, it's not even clear how much that would be a problem since Iraq will likely be producing at an increased rate anyway. In fact, one might wonder if a disruption of the Saudi Entity isn't part of the plan. It would hurt an enemy nation while allowing Iraq (a now friendly nation) to pump out at a maximum rate without a drop in price. Otherwise there's a strong potential for an oil glut. Overall, despite the allure of low oil prices, I believe that overall we benefit most by moderate and steady oil prices.