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We’ve Come A Long Way
News From Around the World
Thursday, February 17, 2011
Ed DeShields

When dealing with the former Soviet Union the United States’ strategy was containment.  History has taught us that a policy of containment is a failed idea and it can tell us a lot about where the world is headed today.

The ultimate goal of tyrants, today or yesterday, is to build a global revolution therefore enabling the tyrant’s longevity.  In the 1980’s it was Ronald Reagan fighting a Russian tyranical revolution.  In 2011, it is a Facebook revolution. 

Ronald Reagan initiated a policy of confronting tyrants; the most well known example being the Soviet Union.  Reagan reversed the traditional "détente" policy of the 1970s and advocated a radical agenda to challenge the Soviets with four strategic approaches; economically, politically, militarily, and psychologically. Unlike today, Reagan didn’t intend to simply coexist with the Soviets, but knew he must defeat them. 

Most important in his strategy was a war of money. Reagan devised a plan to bankrupt the Soviet Union.  He made the dollar a weapon for against the Soviets. He used oil through a partnership with Saudi Arabia.  Because the Soviet Union's hard currency came from a single source: its mineral wealth of oil and gas, Reagan was able to strong-arm the Saudis into tripling oil production, cutting prices by fifty percent and starving the Russian economy of the cash it needed from its main export -- oil.

Today the story is reversed.  

But before we go any further, let me provide you a broad view of just some of the Muslim Oil producers around the world. 

Let’s start, in alphabetical order, with Algeria, Azerbaijan, Bahrain, Brunei, Cameron, Chad and Cote d’Ivoire.  And then let us go to Egypt, Indonesia, Iran, Iraq, Kazakhstan, Kuwait and Libya.  And then let us cross over to Malaysia, Mauritania, Nigeria, Oman, Qatar, Saudi Arabia, Sudan, Syria and Tunisia.  And let us then conclude with Turkey, Turkmenistan, United Arab Republic, Uzbekistan and Yemen.  

What do you think?  Are you shocked?  Twenty-eight countries altogether: some small, some big; some in Asia, some in Africa that produce over half of the world’s oil. At the same time, don’t forget the respective roles of some of these countries in terms of their role in tyrants and revolution occurring as we speak. 

These countries threaten to starve the U.S. of its need for cash by curtailing their purchases of U.S. Treasury Debt and by increasing U.S. debt by raising oil prices – thereby starving the U.S. of the cash it now despeately needs.   These countries will one day move to a basket of currencies among themselves and abandon the dollar to the dust bin thereby finishing their war of money on the U.S.    

The world has changed since Ronald Reagan.  Today there is no appetite to fight because our current politicans have lost their nerve.  Reagan's game plan had been to only meet with the Soviets on his terms, when the power had shifted in America's favor.

Today that power has shifted the other way; towards a whole new re-ordered world ruled by oil and governed by tyrants determined to become the new masters of the world.

About Ed DeShields

Last article: Could Growth and Prosperity Collapse the Middle East?

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