Jump to content

Saudi Arabia runs our foreign policy


Recommended Posts

I don't know how. I don't know why. But they have for over a decade.

 

I don't know what they have on is. But we do their bidding.

 

It's sickening.

 

Well its probably more a matter of "strange bedfellows"...we have goals that dovetail (which is also why the Saudis and Israelis have more "friendly" ties behind the scenes as well).

Link to comment
Share on other sites

accept that Israel is not really even a sovereign state, but is owned and beholden to the US. Then proceed from there. Things will begin to make sense. Saudi does not run anything. It would be nice and cosy if we have them beholden to US. Just the enmity and divisiveness created in the ME by that is enough to make it worth pursuing.

Link to comment
Share on other sites

I don't know how. I don't know why. But they have for over a decade.

 

I don't know what they have on is. But we do their bidding.

 

It's sickening.

OIL!

 

Besides which Saudis have huge investment in the USA and a lot of impact in the Middle East. Much of our policy in the middle East has been about a mix of Saudi Arabia and Isreal. The rest of those folks....at best we just tolerate.

Link to comment
Share on other sites

This goes way back to 1973, when OPEC staged the Arab oil Embargo, as retaliation against the US for supporting Israel during the Yom Kipper War. The price of oil quadrupled, and the economy was in shambles, as the Arabs had found their new oil weapon.

 

Then, in 1979 we were flooded with Arab petrodollars, and oil prices skyrocketed again. Ever since then, we have been kissing the arab sheiks asses, so they don't cut us off entirely!

 

Yom Kippur War

On October 6, 1973, Syria and Egypt launched a surprise attack on Israel.[10] This new round in the Arab-Israeli conflict triggered a crisis already in the making; the price of oil was going to rise. The West could not continue to increase its energy consumption 5% annually, while also paying low oil prices, and selling inflation-priced goods to the petroleum producers in the developing Third World. This was stressed by the Shah of Iran, whose nation was the world's second-largest exporter of oil and a close ally of the United States in the Middle East at the time. "Of course [the world price of oil] is going to rise", the Shah told The New York Times in 1973. "Certainly! And how...; You [Western nations] increased the price of wheat you sell us by 300%, and the same for sugar and cement...; You buy our crude oil and sell it back to us, refined as petrochemicals, at a hundred times the price you've paid to us...; It's only fair that, from now on, you should pay more for oil. Let's say ten times more."[11]

On October 12, 1973, President Richard Nixon authorized Operation Nickel Grass, an overt strategic airlift to deliver weapons and supplies to Israel, after the Soviet Union began sending arms to Syria and Egypt.

Arab oil embargo

On October 16, 1973, OPEC announced a decision to raise the posted price of oil by 70%, to $5.11 a barrel.[12] The following day, oil ministers agreed to the embargo, a cut in production by five percent from September's output, and to continue to cut production over time in five percent increments until their economic and political objectives were met.[13] October 19, U.S. President Richard Nixon requested Congress to appropriate $2.2 billion in emergency aid to Israel, including $1.5 billion in outright grants. George Lenczowski notes, "Military supplies did not exhaust Nixon's eagerness to prevent Israel's collapse...This [$2.2 billion] decision triggered a collective OPEC response".[14] Libya immediately announced it would embargo all oil shipments to the United States.[15] Saudi Arabia and the other Arab oil-producing states quickly followed suit, joining the embargo on October 20, 1973.[16] At their meeting in Kuwait the OPEC oil-producing countries, proclaimed the oil boycott that provided for curbs on their oil exports to various consumer countries and a total embargo on oil deliveries to the United States as a "principal hostile country".[17] The embargo was thus variously extended to Western Europe and Japan.

Price increases were also imposed. Since short term oil demand is inelastic, demand falls little when the price is raised. Thus, oil prices had to be raised dramatically to reduce demand to the new, lower level of supply. Anticipating this, the market price for oil immediately rose substantially, from $3 per barrel to $12 per barrel.[18] The world financial system, which was already under pressure from the breakdown of the Bretton Woods agreement, was set on a path of recessions and high inflation that persisted until the early 1980s, with oil prices continuing to rise until 1986.

440px-Oil_price_chronology-june2007.gif
magnify-clip.png
The price of oil during the embargo. The graph is based on the nominal, not real, price of oil, and so overstates prices at the end. However, the effects of the Arab Oil Embargo are clear—it effectively doubled the real price of crude oil at the refinery level, and caused massive shortages in the U.S.

 

From wikipedia: Arab Oil Embargo

Link to comment
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...