Guest guest Posted February 4, 2011 Report Share Posted February 4, 2011 This backs up what was saying in an earlier post, and I must say that this is one of those times when I wish people would pay more attention to what writes. The situation in Egypt, Yemen, Jordan, and (maybe this weekend) Syria, and possibly Algeria are very serious and affect all of us in very significant ways. Let's get oil out of the way first. Why? Because most people do not understand what an " oil shortage " means, and I am tired of people's ignorance. As far as oil is concerned, most people think " Oh no! Gas is going to go up, and there will be lines at the pump! " Or, " Airplane tickets will cost more! " And maybe they have some vague idea that the price of goods will go up because they understand that shipping will cost more due to fuel. But they forget that oil is used in asphalt, fertilizer, and plastic, and even food itself. If you are reading this, the mouse you use to click on this entry is made of plastic, which is made with oil. Oil as a commodity is used everywhere, and in unexpected places. There are plenty of RESERVES of oil, but when the SUPPLY is cut off, and demand remains the same, or gets higher, prices go up everywhere. Much of the inflation we have witnessed since 1950s or so can be attributed JUST to the price of oil going up at a rate that EXCEEDS the rate of inflation. What's held BACK inflation up until recently were things like automation and cheap labor replacing labor costs, more efficient manufacturing processes, a LOWERING of the price of other commodities necessary to manufacture products with. ( can tell you that the price of lumber has fallen, for example, and even with past housing booms, its pricing, on the whole, hasn't kept pace with adjusted inflationary dollars. The media is telling you that Egypt drills oil, but is not a significant exporter of oil. Speaking as an energy investor, that is not entirely correct. With the exception of Saudi Arabia, most Middle Eastern countries are exporting the same amount of oil as Egypt is, and taken as a whole, the number is significant. If Egypt falls, in and of itself, any loss of exports would not mean much, but if the whole Middle East fell, the major oil producers in the world would be Canada and Venezuela. We know the political situation in Venezuela is not that great, and Canada is putting most of their efforts into " making hay while the sun shines " which means they are trying to squeeze every drop of oil out of their oil sands while the cost of oil is high, and they are charging a pretty penny for it. My point is that if you're going to whine about high gas prices at the pump, shut your yap. Everything will go up in price if the Middle East falls. Given the shakey economy, which is far worse off than our governments will admit to, this could cause a very deep economic crisis which it will take years to recover from. And all that stems only from a pending OIL problem. Secondly, if the Suez Canal shuts down, it means goods shipped from the Orient or from our west cost to Europe will have to travel an extra six thousand miles to get there. That costs money to begin with, but given the price of oil if oil is being cut off world wide, the price increase will rise exponentially, not by a small percentage. Third, there is the problem of having a bunch of states with radical people in it surrounding Israel. All of the rest of the world will have to decide what to do if these radical states converge on Israel and attempt to wipe it out. According to World Bank 2009 figures, Israel has roughly 7.5 million people living in it. And the world's governments would need to decide if they wanted to gather up their militaries and go against Morocco, Alegeria, Tunisia, Libya, Egypt, Yemen, Oman, The United Arab Emerates, Iran, Iraq, Jordan, Saudi Arabia, Syria, half of Sudan, and maybe even Turkey, and of course Afghanistan, not to mention some of the balkan states and former Soviet countries which may tilt toward radicalism. Or we could just let those 7.5 million people die, and before you go thinking we wouldn't do it, remember that we let an estimated 6 million Jews die in WWII not to mention 6 million other German captives, and no one bothered to stop Stalin's Slaughter, or Turkey's massacre, or the Rawandan massacre. Then you need to think of the religious implications here. Three of the world's major religions consider Jerusalem their holiest city. If the world's governments did nothing to save Jerusalem, you'd risk uprisings in those countries as well. A secondary consideration with regard to Jerusalem are end times prophecies. Whether you believe them or not is not the issue. Whether OTHER people believe them or not IS the issue, because if they do, and they believe they " see " the end times approaching, they will either do all they can to prevent it, or all they can to force it to happen, and that in itself will create chaos. There are other reasons to be concerned about the Egyptian situation, but one thing is worth stating: This situation is atypical. It's not a case of one tinpot regime coming into the gunsites of its citizenry. It's a case of possible " revolution " over a whole region. Arguably, the last time we've seen such a thing was when communism swept over eastern Europe and over China, Indochina, parts of Africa, and South America. Many other countries which we have always considered Democratic still incorporate elements of Socialism into their governments to this day, but because we've been born into such political and economic systems, we don't notice the effects. The second thing which makes this situation atypical is that this is not a sweeping revolution brought on by the nations' leaders, but by the people themselves. In other words, instead of having a few dictators embrace communism and foist it on a billion and a half people around the world, we have hundreds of millions of people clamouring for forms of radical governments which can topple world economic markets and by proxy political systems. How to solve the problem? Ironically, it would be better for all the dictators in office to stay there as Mubarak is proposing he himself do, and then slowly transition to a new government that would meet the needs of the majority of the population. But it's unlikely that such a thing will happen in every case for the simple reason that eventually, these movements will have leaders which will incite the people to push for change now, without the people knowing that the change will be radical. We are on the cusp of seeing very violent activity in Egypt tonight, and if many deaths occur in the next day or two, that may be all it takes to cross the point of no return. Administrator http://www.ynetnews.com/articles/0,7340,L-4023840,00.html Muslim Brotherhood: Israel failing to honor peace with Egypt Published: 02.04.11, 07:31 / Israel News share Mohamed Morsy, a spokesman for the Muslim Brotherhood movement in Egypt, says Israel is failing to honor its peace treaty with his country. Asked by CNN whether his movement would honor the treaty, he responded that it would be up to the Egyptian parliament to decide. He added that the Muslim Brotherhood " are not against the Jews. We are against Zionism. " (Yitzhak Benhorin, Washington) Quote Link to comment Share on other sites More sharing options...
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