PINR - Escalating Conflict in the Middle East Could Spark a Global Recession

I just read the PINR dispatch for 7/31. It's: PINR - Escalating Conflict in the Middle East Could Spark a Global Recession Grim reading...basically it touches on the very real possibility of further escalation in the current Israeli / Hezbollah conflict. Namely the author of the piece, Jephraim P. Gundzik analyses the potential economic effects if Syria (and by default Iran) get pulled into the conflict. Involved directly and militarily and or economically to be more precise. Iran could raise the price of oil and cause us great harm...as Gundzik pointed out it wouldn't take but a 20% reduction to severely impact the price per barrel. This would certainly benefit Russia (getting more money per barrel sold), since they continue to move towards an entirely nationalized energy industry. With their increased profits, they can funnel more money into arming and developing their proxies like Syria and Iran.

Well this reading got me worried enough to write my congressman and senator. I would encourage anyone who reads this to do the same. We the people have got to get involved and start to make our voices heard.

Here's the text of the letter I wrote to Wayne Allard and Tom Tancredo:

Mr. Allard and Mr. Tancredo,

I am concerned about the escalating violence in the Middle East and it's potential economic effect on the USA. My intent in writing is to stress the importance of energy independence to the survival (economic and general) of the USA and the continued growth of our nation, our people, and the human race. I think we are diametrically opposed to the ideologies arrayed against us in the world and we need to take steps, and precautions to ensure our continuation and hopefully our prosperity.

It has been reported and I believe the current conflict in Lebanon was basically manufactured by Iran - though I'm sure Hezbollah hardly needed any prompting to act against Israel. It might be more accurate to say Iran let go of the leash and Hezbollah tore into Israel like a mad pit bull. The point is Iran pulled their strings and Iran is diplomatically very close to Russia and has many trade agreements with them - especially oil, refined gas and other energies...

Who is to say that Iran won't ultimately be drawn into this conflict and if they are drawn in, it will be logical for them to cut back their oil production and blow up the cost per barrel on crude. This benefits Russia as the price per barrel goes up and they continue to make a killing...especially since they have nationalized all of the major oil and energy companies recently. Who is to say Russia isn't pulling (or pushing) Iran into acting. Feeding Ahmadinejad's ego and fantasies and manipulating his actions would not be very difficult. Hezbollah and Ahmadinejad see eye to eye as far as Israel is concerned. It certainly wouldn't take much prodding by Ahmadinejad to get the group (whose charter is the elimination of Israel) to launch some rockets and kidnap some soldiers...

Also of note is Iran's sudden coziness with Venezuela. Chavez is no friend of the USA and while we don't necessarily rely on the Middle Eastern oil to satisfy our continental energy needs, we certainly need Venezuelan oil on the market to keep our hemisphere's economy running.

We need to be more self-sufficient and need to start planning for the future when the other shoe finally drops. I would like to see more drilling in America. Whether it be ANWR, off shore, shale oil here in Colorado, or methane gas on the Atlantic shelf, we just need more programs providing our own energy while more technological and long-range solutions are researched.

Related, but on a different note, I would like to increase trade with nations like Brazil who are less dependant on oil and who can't be blackmailed by tin pot dictatorships who control the majority of the worlds' oil.

At home, there should be more tax cuts and tax incentives on green companies and green technologies. They're expensive, but no more expensive than funding the next round of rich extremists bent on destroying America. Shale oil isn't more expensive than the current price per barrel, and our economy can survive and grow with the current price. I don't know how much more our economy can take and continue to grow, but at current prices, it's still trending up.

Technology like molecular manufacturing can even eliminate our reliance upon international suppliers of goods lots of drawbacks and probably a little extreme(like hanging a picture with a sledgehammer) but still it's provocative and somebody's going to let this genie out sooner rather than later, so it may as well be us.

Events in the world are picking up pace, and the road ahead looks like it could be ugly. I want to know that there are plans for a strong energy bill and actions being taken. I would like to know what you are doing to help us deal with the current crisis and what's on the table for the future.

Thanks and best regards.

Ya gotta start somewhere...what's the alternative? Apathy? Death? The first step is raising awareness (not creating awareness like the man-made global warming folks)and that's the job of "we the people" to be aware and knowledgeable and to use that knowledge to work the system and form a consensus. We take that consensus and make law and policy through our representatives. After all, we elected them, their job hinges on our votes.