The ethics of oil in a time of turmoil

"Only a few weeks ago, instability in the House of Saud seemed inconceivable. But the generational divide that is driving regional protests is perhaps greatest in Saudi Arabia. Nearly half of its people are 18 or younger, and 40 per cent of Saudis aged 20 to 24 are unemployed. At the other end of the divide, the country’s top three rulers are aged 76 to 83. Saudi activists want jobs, democracy and greater rights for women. Through Facebook, they are calling for a “day of rage” on March 11.

No wonder U.S. President Barack Obama’s congratulatory speech after the overthrow of Egypt’s Hosni Mubarak was so poorly received in the Saudi capital of Riyadh. And when American diplomats threatened to end U.S. financial support for the Egyptian military if it intervened to support Mr. Mubarak, the Saudis immediately offered to replace that financing – a notable schism in the long-standing close relationship between Saudi Arabia and the United States. With countries producing nine million barrels of oil a day facing instability, any serious disruption to Saudi Arabia’s 11 million barrels would send oil prices to stratospheric heights. Already high food prices would follow suit, pushing the world into unthinkable economic and political turmoil.

The West needs to avoid this nightmare scenario, even if it means compromising democratic ideology with the reality of preventing global economic meltdown."


Note EU-Digest:  compromising democratic ideology to prevent global economic meltdown? what nonsense - that is what we have been doing all the time and look what happened.  It is precisely what we should not be doing.  

In this context it was interesting to hear financial reporters and analysts on CNBC this evening promoting a no-fly-zone above Libya. They based their assessments on the fact that even though it would cost the US Government and its "partners" about eight billion dollars a year to implement a no-fly-zone above Libya, the drop in oil prices as a result of this no-fly-zone could make Wall Street more money in one day than what  would be  invested into this no-fly-zone for a full year. Obviously, self interest once again taken to great heights by our "compassionate" financial community.

Lets face it, the fact of the matter is that the financial community has no ethics and the problems the world is facing today are just about all of their making. The only way to make the financial industry understand is through their pocketbooks. So its not a question of the West having to avoid "Nightmare Scenarios", it is really about the financial industry having to make changes. Lets hope some event, maybe even this present Middle East crises, will bring them to their knees. Only than might they start showing some more  humility and compassion towards the people they serve.

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