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chefmike
12-20-2006, 09:26 AM
Saudi Realpolitik: Political Blackmail, Oil Price Extortion

Some two weeks ago, according to the New York Times, Saudi King Abdullah issued a warning to Vice President Cheney during his one day summoned visit to Saudi Arabia. His nation would provide financial support and aid to Iraqi Sunnis if the United States pulled its troops out of Iraq.

This report has been denied both by the Saudis and White House spokesman Tony Snow " that's not Saudi government policy".


But yet, what if it's true. We are dealing with interlocutors where duplicity is not an unknown feature of discourse. Only last month Nawaf Obaid a senior advisor to the Saudi Arabia's Ambassador to the US, Prince Turki al- Faisal wrote in the Washington Post quoting from a speech of al-Faisal's the month before:

"...since America came into Iraq uninvited it should not leave uninvited" (a personal aside- no mention of the fifteen Saudis that were on those three planes that set off these disastrous chain of events).

And then he went on: "If it does, one of the first consequences will be massive Saudi intervention to stop Iranian backed Shiites from butchering Sunnis. ... As the economic powerhouse of the Middle East, the birthplace of Islam and the de facto leader of the world's Sunni community...Saudi Arabia has both the means and responsibility to intervene."

Shortly thereafter Nawaf Obaid was summarily dismissed. Barely two weeks later Prince Turki al-Faisal resigned as ambassador to the US. Was candor their sin of commission?

If so it would be an exercise of blatant political blackmail threatening the American government with the following Hobson's choice:
A- Either you continue your presence in Iraq at the cost of the lives your soldiers, and at the cost of billions and billions in treasure, or
B- We the Saudis, will initiate policies that will all but guarantee a massive riposte by Iran and the descent of the region into a conflagration of war and savagery. It will certainly result in impaired access to, or possibly even destruction of the regions oil and gas infrastructure and push the world's economies into deep crisis.

This inferred threat and this scenario underlines the grave dilemma in which we find ourselves. Whether to stay in Iraq, and for how long, has become a matter of urgent debate for the American public. But clearly for the Saudis, it is in their vital interests that we stay.

Yet in their immutable fashion of "heads I win, tails you lose" the Saudis have taken it upon themselves at this key moment to take the lead within OPEC initiating the first series of OPEC production cuts in 2 ½ years in order to further ratchet up the price of oil. This at the very beginning of the winter heating season and with the price of oil already some 300% higher then at the start of the Iraq invasion. Thereby, according to the International Energy Agency providing "cold comfort" for a risk prone global economy. Before their decision our Energy Secretary Sam Bodman together with the head of the International Energy Agency Claude Mandril called on OPEC (read Saudi Arabia, its leading player) to wait until next year before deciding on further production cuts. Their call fell on deaf ears. Thus, to use an old saw, while we are engaged in Iraq, looking after interests that include those that are of fundamental importance to the Saudis, they are happily stabbing us and the rest of the world's economies in the back.

As a pointed aside, only this past week Saudi Arabia successfully bought the British government. Britain's Serious Fraud Office decided to drop a corruption probe into a transaction (BAE System's Al Yamamah arms deal) with Saudi Arabia. The Saudis had threatened to pull out of L6Bn negotiation, substitue French jets for British fighter jets unless the probe was brought to an end. With Tony Blair's blessing, Attorney General Lord Goldsmith announced he was dropping the probe. He added that the decision had been made in the wider public interest, which had to be balanced against the rule of law.

Are we far behind? It would be highly interesting to shine a bright light on the interface between our elected officials, our government agencies and the moneyed influence of the Saudis, beyond the Bush White House and the Baker law firm. Saudi Arabia's current relationship with the US could perhaps be best described, "ask not what we can do for you, but rather what you can do for us". And it is time that changed.

http://www.huffingtonpost.com/raymond-j-learsy/saudi-realpolitik-politi_b_36578.html

Caleigh
12-20-2006, 05:25 PM
Headline should read:

BRITISH BOW TO BLACKMAIL

"Britain's Serious Fraud Office decided to drop a corruption probe into a transaction (BAE System's Al Yamamah arms deal) with Saudi Arabia. The Saudis had threatened to pull out of L6Bn negotiation, substitue French jets for British fighter jets unless the probe was brought to an end. With Tony Blair's blessing, Attorney General Lord Goldsmith announced he was dropping the probe. He added that the decision had been made in the wider public interest, which had to be balanced against the rule of law. "

bucatini70
12-22-2006, 04:58 PM
this is just normal politics you really cannot expect all the other countries in the world to act the way you want can you? If the world made sense then there would be no middle east conflict....other governments will continue to keep conflict for their own best interest what possible benefit is there to them to stop conflict? play the blame game all you want peace is not on any countries agenda in the middle east and a few other spots in the world

chefmike
12-23-2006, 11:13 PM
More from the learned RJ Learsy, whose bio follows this column...

Dick Cheney and King Abdullah Take a Meeting

In a rather remarkable article in the New York Times on December 22nd "Bickering Saudis Struggle for an Answer to Iran's Rising Influence in the Middle East" the following was reported, and I quote:

"A member of the Saudi royal family with knowledge of the discussions between Mr. Cheney and King Abdullah said the king had presented Mr.
Cheney with a plan to raise oil production to force down the price, in hopes of causing economic turmoil for Iran without becoming directly involved"

One can only imagine the tenor of the conversation but let me try:

King Abdullah: Dick, thank you for coming. I hope I didn't upset your weekend plans.

VP Cheney: No, not at all Your Highness. I am always happy to accommodate your schedule.

King Abdullah: Dick, I am very worried about what's happening in Iraq and all this talk about your pulling out.

VP Cheney: We are very concerned as well about what is happening there and especially about the mischief being caused by the Iranians.

King Abdullah: We have very grave concerns about the Iranians but we have a plan.

VP Cheney: How interesting Your Highness, and what would that be?

King Abdullah: Well you see the economy in Iran is in dire straits. The only thing keeping their economy functioning are their oil revenues. We have a plan to pump enough oil to force down the world price of oil and thereby cause economic turmoil for the Iranian government.

VP Cheney: Excuse me, you would do what?

King Abdullah: Hurt the Iranians by collapsing the price of oil.

VP Cheney: Hmm, Your Highness. You could do that? But I thought the price of oil was determined by the invisible hand of the free market. I'm shocked!

King Abdullah: Well, I know that's what we try to tell everyone and we have been so very pleasantly surprised how well our message has been received.

VP Cheney: Your Highness, I respectfully ask that you consider such a step very carefully. It will not only be the Iranians who would suffer.You see President George comes from Texas and I from a state called Wyoming, that's just south of Canada. We have a lot of friends and supporters in our home states in the oil biz and when all is said and done they are our first allegiance, after all they helped us get where we are. We have a saying back home "you scratch my back and I'll scratch yours". -You get it Your Highness, well that's great!- . A lot of our folks would be very upset with us if they learned we were party to anything that brought down the price of oil.

So far they've been really happy.

King Abdullah: Oh, I didn't think of that. Let me reflect on it. Meanwhile what about this I hear of your taking your troops out of Iraq?

VP Cheney:Your Highness: Let me put your mind at rest. We are seriously contemplating a surge.

King Abdullah: "Surge"? What does that mean?

VP Cheney: You know, that's a good question. I'm not sure I really know but when I get back to Washington I'll fill you in, Your Highness.

King Abdullah: Thank you, Dick.

http://www.huffingtonpost.com/raymond-j-learsy/dick-cheney-and-king-abdu_b_37014.html

Raymond J. Learsy is the author of the book Over a Barrel: Breaking the Middle East Oil Cartel. A graduate of the Wharton School, he made his life in the fast-paced, risk-filled world of commodities trading, beginning in 1959. In 1963, he started his own firm and over twenty years expanded from the U.S. into Canada, the United Kingdom, Luxembourg, Brazil, and Pakistan, trading in an array of bulk raw materials and commodities, shipping to customers worldwide. In the 1980s, he shifted gears as a private investor, from 1982 to 1988, served as a Reagan appointee to the National Endowment for the Arts. Currently, he is a member of the Woodrow Wilson International Center for Scholars. Learsy's richly-informed analysis of the international oil trade, OPEC, and its impact on the American and world economy has been featured in the National Review Online and the New York Times. He currently resides in Connecticut, and can be reached at triduane@aol.com.