The recent headlines talk of a dramatic collapse of the Russian Ruble against the dollar and euro. World oil prices today hover around $57 dollars a barrel. Late August they were over $100. OPEC ministers refuse to act to stabilize prices. The Russian rouble is forced to halt trading in mid-December. Then the US Congress votes yet a new round of economic sanctions against Russia which await President Obama’s signature. When we examine all of this more closely it reveals the strategic great confusion of western elites, especially American Oligarchs frantically trying to find ways to hold their grip on global power.
I sometimes use the very descriptive adjective “stupid” to speak about the actions of people we are accustomed to think of as anything but stupid. Malevolent, evil, satanic even, you say, but not stupid. Yet more and more I find the description stupid the most appropriate. It is in fact their stupidity in being incapable, in their addiction to power, of seeing the larger global consequences of their tactics or strategies.
If we define intelligence as the ability to grasp the interconnectedness of everything in our universe, then we can call stupid those who, despite their vast resources and access to the best minds, are incapable of considering anything outside their tunnel vision narrow world.
Cold War worked from 1946-1990 to stabilize their imperial grip on global power over Western Europe, the Third World, Japan and Asia. The end of that Cold War has seen the dramatic erosion of our power as new upstarts like China and Russia and even Iran assert their sovereign rights in the world, we can imagine their thinking: “Well, then let’s go back to what worked then. Let’s start a new Cold War or even, step by step, a new unconventional global war to retain our American Century, our Project for a New American Century,” as Dick Cheney and friends call it.
They now try a rerun of their 1986 Saudi oil price collapse strategy to topple Putin, Maduro in Venezuela and Iran according to informed reports from reliable Washington researcher Wayne Madsen.
In 1986, Vice President George H.W. Bush, father of George W., together with Secretary of State George Schultz and others convinced Riyadh, as John Kerry did in his September 2014 meeting with Saudi King Abdullah, to run a “reverse oil shock” that had the effect of toppling the over-stretched Soviet Union. It worked in 1986, why not in 2014? Is the thinking of some in Washington.
CIA role and oil price suicide
According to Madsen, who is a former NSA employee with good connections in different factions of Washington intelligence community, it was CIA chief John Brennan and CIA operatives inside the Saudi Aramco state oil company who devised a diabolical strategy of getting the Saudis, along with Kuwait, to flood the world markets with crude and let Wall Street banks like Goldman Sachs, JPMorgan Chase and Citigroup do the rest of the dirty work with leveraged derivative short futures on crude.
While I cannot confirm Madsen’s assertion that the Saudi flooding perforce will necessarily last another five years after which Saudi production will collapse because the US CIA convinced Aramco against the advice of oil engineers at Schlumberger and other foreign oil services companies not to use salt water injection, that Brennan, who by some who know him has been described as a “knuckle dragger,” was poised to implement the Saudi strategy as an anti-Putin move is entirely plausible.
Only one problem. The brilliant strategy is ultimately stupid because it is collapsing the US domestic oil industry and hundreds of billions of dollars of planned energy investment globally along with lowering Russian oil dollar revenues and the ruble.
F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”