Moon of Alabama Brecht quote
May 17, 2008
The Delusional Addict

Here is a story on delusional addicts who believe they have leverage towards their drug dealers.

Democrats in the U.S. Senate have threatened to withhold military supplies from Saudi Arabia and its neighbors unless they pump more oil.

"We have a strategic partnership with the Saudis, but it seems to me a partnership works two ways," Sen. Byron L. Dorgan, D-N.D., chairman of the Democratic Policy Committee, said at a news conference Thursday. "The Saudis want to purchase sophisticated weapons from our country. … They should understand there are certain things we need from them as well."
US Dems threaten Saudis with arms cutoff, April 26, 2008

Russia’s state arms exporter Rosoboronexport is preparing a $4 billion arms contract with Saudi Arabia, the Gazeta daily reported on Tuesday.

Experts say the helicopter contract alone is worth around $2 billion.
Russia eyes $4 bln arms contract with Saudis, May 13, 2008

The Senators introduced a resolution of disapproval on the arms sale as President Bush prepared to head for Saudi Arabia, partly on a mission to contain runaway oil prices.
Senators Threaten Saudi Arms Deal Over Oil Prices, May 13, 2008

Russia has won a 4-billion-dollar contract with Saudi Arabia in a competition with the USA and France.

It became known that a half of the contract accounts for 100 Mil helicopters (mainly, Mi-17 and Mi-35). Half a billion dollars accounts for 150 T-90C tanks. The contract also includes 20 middle-haul air defense systems Buk-M2E and several hundreds of BMP-3 infantry combat vehicles.
Russia forces USA out from its traditional arms markets, May 16, 2008

Saudi Arabia, the world’s largest oil exporter, rebuffed a call Friday by President George W. Bush to pump more crude for a second time this year, saying it would only boost supplies to meet customer needs.


Oil traded in New York is forecast to rise to an average $148 a barrel next year, Goldman Sachs analysts said in a report Friday, citing supply constraints as the cause.
Saudis rebuff U.S. call to pump more oil, May 16, 2008

Why does no ‘western’ media mention the Russian-Saudi deal?

Comments

b,
What a great post.
I am not sure that we are in the middle east just because they have oil, but it is certainly a large part of it.
Keep up the good work.

Posted by: bucky1 | May 17 2008 11:50 utc | 1

I find it rather odd that the Saudis would buy Russian arms, I understood that the Saudis bought arms from the US because they were got leaned on to do so by the US government to support the defense industry. Am I to assume that the Russians are doing the same thing or is it that the Saudis actually believe those helicopters and tanks are needed?
Dorgan is owned by AIPAC and has had many other harebrained ideas in the past. He was also responsible for banning BIC lighters from being carried on board aircraft.

Posted by: dan of steele | May 17 2008 12:05 utc | 2

Well, hit the Saudis if you care to. But what’s driving up prices the most now is unregulated speculation. That’s how we beat post-Katrina price with no Katrina and no comparable surge in consumption. Every time Bush mentions Iran, Oil goes up another $1.00 a barrel. The consumer is being triple fucked by the Bush administration, OPEC and raw capitalistic greed. Do I see another bubble forming?

Posted by: Diogenes | May 17 2008 12:24 utc | 3

I agree with Diogenes, speculation is the main reason oil is high. It shouldn’t be any higher than $60-80 per barrel. If that. There plenty of oil. The US buys most of its oil from Chavez, Mexico and Canada. Creating a world oil market and electronic trading that is unregulated is running up prices.
Regional markets for oil would be best like Texas sweet crude, North Sea Brent, etc. It only cost $3-4 to pump a barrel of Saudi oil. Hedge fund and speculating Exchange Traded Funds are driving up prices in pure speculative fashion.
Oil will come down. Brazil just discovered 40 billion barrels, 4 billion barrels were just assured by USGS in the Bakkin formation at the Montana/North Dakota border with as much as 40 billion barrels recoverable with better technology.
Also, a New Yorks Times article referred to by Learsy at Huff states the Saudi field actually contain 750 billion to 1 trillion barrels because technology allows greater recovery of hard to get oil. That all said, there is no shortage besides market manipulation.
Should we be looking for alternatives to fossil fuel? Absolutely. We must reduce our dependence on oil and reduce pollution. I have been for years by using more efficient lite bulbs, appliances, better gas mileage cars, etc. But the US is sorely behind the rest of the world who have dealt with high gas prices for years. Maybe high prices will force some change.
As far as Dorgan, he is a little weird, but hes more for the little guy than most senators.

Posted by: jdp | May 17 2008 13:13 utc | 4

Congress is posturing for public consumption. The defense industry and their lobbyists will allow no such bill to pass.
If only they would! Saudi would finally break with the U.S. and move towards Russia, China….and Iran. A move likely to happen anyway. Saudi arms purchases were only a means to repatriate America’s lost petrodollars anyway.

Posted by: Lysander | May 17 2008 14:00 utc | 5

Notice the difference in b’s posted headline “Saudis rebuff U.S. call to pump more oil” and this one:

WASHINGTON (Reuters) – President George W. Bush walked away from a meeting with Saudi King Abdullah on Friday with a prize he has been seeking for months: a commitment from the world’s big oil exporter to boost output.

Saudi Arabia move to boost output by a modest 300,000 barrels per day, or 3.3 percent, in an attempt to head off an oil price shockwave that is disrupting the global economy, experts said.

Bush gets oil but no credit for jawboning Saudis
A reader could get the impression that the Saudis did this just for Bush and nothing to do with the rise in World demand:

In China, the government recently entrenched its subsidy program – which could cost as much as $87-billion (U.S.) – in order to end its frequent bouts of embarrassing fuel shortages in time for this summer’s Olympic Games.

The new realities of record oil

Chinese demand for imported diesel is expected to rise sharply in June after this week’s earthquake disrupted gas supplies to major cities and as companies build stockpiles ahead of the summer Olympics.

China’s new car sales climbed 18 percent to 2.46 million in the first four months of year, with a new car sold almost every five seconds.

Weak dollar and supply worries push oil to fresh high of $128
All hail George W Bush the saviour, for rescueing the Chinese market.

Posted by: Sa, | May 17 2008 15:13 utc | 6

me above left off the m

Posted by: Sam | May 17 2008 15:17 utc | 7

on the average, somewhere between 20 to 40% (reasonable guess) of the price of a barrel of foreign crude-oil ends up in the pockets of the multinational oil majors (Exxon, Shell, Chevron, Elf, Agip …). Next the refineries make a clear profit of anywhere from 17% to 25%. Both industries are currently experiencing unprecedented good times. But whats really changed structurally, in the last 20 years or so is the growing influence of oil traders. Oil trading companies today are increasingly involved in exploration, production, refining, vessel-ownership as well as physical and paper trading. Mostly in the international arena where they are virtually unregulated. Interestingly, many of the investment banks on Wall Street have jumped into physical trading too.
on the other hand theres no evidence that OPEC or any of its member countries has been doing anything whatsoever to jack up the price of oil.
and on oil markets (futures/spots/…) there are enough buyers (refineries) and sellers (oil producing companies) out there to sustain a futures market that responds adequately to supply and demand. And if theres really a need for paper-traders (for liquidity), why are paper-traders allowed to trade in volumes far in excess of the actual amount of physical product available ?
And unlike the housing market which corrects itself when speculators walk away as soon as regular home-owners stop buying, spontaneous corrections in a market for a high consumption staple such as oil are a different matter.

Posted by: jony_b_cool | May 17 2008 18:39 utc | 8

Speaking of delusional addicts, I could barely contain myself after reading the following:
Bumbling China steals our Independence (day)!

An explosion that destroyed 20 fireworks warehouses in China three months ago will probably dim night skies in the United States this Fourth of July.
Fireworks vendors said that because of the shortage, fireworks such as bottle rockets, ladyfingers and Roman candles, and mortars used in professional displays, will be hard to get, meaning many of the usual pyrotechnic extravaganzas across the country may be curtailed or canceled.
“Everybody in the industry is scared to death that their orders aren’t going to get here in time,” said Ken Sprague, president of Hamburg Fireworks Display in Lancaster, Ohio, which choreographs fireworks shows throughout the Midwest.

America where denial is not only a river in Washington, but the whole of the culture, ‘The Hospital of incurables’ as Octavio Paz wrote in ‘An Erotic Beyond: Sade’. I can’t help but enjoy a slice of Schadenfreude Pie about the potential of poor little America having it’s holiday dampened. And I can say that, I’m from here.
We are a sick, sick society. As sick as it’s secrets.
Addicts, with typical addicts behaviors, and all the degradation, dehumanization, mental illness that comes with it.
Paz, in regards to Freud writes, “…in the United States, we have forgotten his ( Freud’s ) critique of civilization and have reduced his teachings to a method for adjusting the ill to social life. [We] accept the therapist and ignore the philosopher and the poet.
Further, Paz writes, again w/regards to Freud, the oscillations in his (Dr. Freud’s thoughts explain but do not justify the simplications. Against certain neglect: a mutation — their are certain psycho-analysis’s, such as Eric Fromm, who recently has attempted to bridge psycho-analysis and socialism. By eliminating the the critique of civilization from psycho-analysis, many of Freud’s disciples take as a supposition that the institutions that rule us are healthy, that they represent a norm to which the individual must be adjusted.
Psycho-analysis thus changes from a means of liberation to an instrument of oppression. Freud describes values as chimeras: now illusions have become real, and desires illusions.
Fromm quite rightly states that to adjust patients to a sick and rotten civilization does not make them well, but aggravates their illness.
All this does not even mention nor touches on the American poor whom were drafted in the ‘economic draft’, the ones coming home with ptsd and other soul abuse by these war criminals and an aloof society whom would have them integrate their moral wounds of being used in crimes against humanity.
Anyway, my laughter turned into hysterical laughter wrt the link at how unsane we have become. And the sadness but most of all irony of a dim 4th of July.

Posted by: Uncle $cam | May 18 2008 6:38 utc | 9

Uncle, enjoyed your trip down the psychoanlytic memory lane. Its fascinating, not to say highly apposite, to regard the ills of our society and its leaders ffrom the psychotherapeutic pov.
As to the deluded addict and the oil, we have only begun to see the implictions of the denial syndrome in attemtpting to protect this habit. Fact is, in the short run, we and the addict must stay hooked. Withdrawl in the short term is not an option since our infrastructure is pertroleum based. Its not a matter of some unpleasant withdrawal and then we emerge on the other side, “clean and sober”. In the short run, the other side is collapse.
So we’ll be seeing and hearing, al la the Dorgans, even more desperate and irrational attempts not to confront the harsh realities of our addiction and the toll its taken and will continue to take on the moral well being our country.
I saw a revealing set of statistics the other day about significant upticks in ridership that transit systems in some large metros, i.e., those with the capability to provide alternative means of transport/commute, are experiencing. Now that is pretty amazing to anyone who understands how resistent to economic disincentives transit usage has been since the ’50’s. I suspect its the combiation of gas prices and economic downturn that’s operating.

Posted by: DonS | May 18 2008 15:40 utc | 10

ONE LONE RACOON
We went into the city last night to visit some old friends, in
a town I used to ramble around thirty years ago on foot. It took
most of the time getting there in that last mile at the offramp,
backed out onto the freeway, waiting our turn at Human Paradise.
The surface roads that I remembered walking were there, sort of,
concrete-barrier-rail canyons now, like cattle chutes, pavement
shattered, spall signs of impact like shell holes, car body parts,
thick road grime, odd artifacts of human detritus, faceless, numb.
We tried to wend our way to their house, the way I used to walk.
Those by-ways were all freewayed now, boxed in by condo canyons,
deep in shadows, no sightlines, no points of reference, we ended
up in another part of town, turned around, roadkill not dead yet.
Their neighborhood, perched on a sunny, tree lined hill off an
1800’s cable car commercial boulevard, has become KeyWest-ized,
Waikiki-ized, coffee shops back to back with wine warehouses and
trendy restaurants, big garrish signs, streetlights and traffic.
We drove down a crowded aisle of parked cars, one open lane wide,
searching for their house, where oh where, just cars everywhere,
so many cars! At one point we were face to face with another one,
each of us stuck without a gap by the curb to pull out of the way.
We gulped a Costco dinner and Three Buck Chuck, then headed out
to the theatre, dropped off while our host drove around for ten
minutes looking for parking. What used to be a walking boulevard
faced on a sea of cars, pale-faces straight ahead, roar of metal.
The show was a four-act play, a modern dance of jerky movements and
staccato electronic buzz, an acoustic orchestra playing sounds I’d
never heard unplugged instruments make, dance/movie montage homage to
war, closing with a Blue Man -nee- Lilo Stitch, so epilepticly happy.
We looked for a place afterward to grab a coffee. Everyone sitting
with their mug-up, staring into their wifi laptop, everyone buzzed,
jazzed up, a Saturday night, leaden-faced, glumly golom, searching
for connection in a pale flickering glow of two-dimensional pixels.
The freeway home was wide open, skyscrapers disappearing suddenly,
gray box canyons opening up, billboards and offramp retails grown
few, then just tall trees, darkness and pavement, smoothly humming.
I cracked the window at our home offramp, and smelled new-mown hay.
Still, the birds haven’t come back this year. The mornings dawn
bright, and calm … and silent. No bees, no birds, just the sun
rising higher each day, burning down, heat record already broken,
and one lonely racoon, his tail torn off by dogs, begging for food.
“Remember oil is on the move, and you should buy it at any price!”

Posted by: Abetter Lief | May 18 2008 16:37 utc | 11

Great post, Uncle, @9
“…to adjust patients to a sick and rotten civilization does not make them well, but aggravates their illness.”
A dim 4th of July becomes a metaphor at this point.
An old pal of mine has been running a fireworks stand for years, a seasonal way to earn a living; and he tells me what a big deal it is to the rural folks, a seemingly necessary cultural moment for them. These are America’s poor, less well educated, “low information voters” (as some political blogs are now calling them). They’ve never heard of Paz or any South American poets. This is the raw material of Independence Day in America’s Outback. These folks will buy on credit or spend the last money they have in order to celebrate with fireworks.
Only people who know what’s going on, can feel sick about “the rockets’ red glare…and bombs bursting in air.” Times are growing tougher, though; and the falling of the US dollar makes fireworks bought from the Chinese increasingly expensive. The small retailers (like my friend) are looking at the end of the road and the Poor House, at some point. The 20 Chinese warehouses’ explosion just brings this home all the quicker.
The drug ads on TV remind Americans of what can happen to the better informed among them, who think too much. Try Abilify; and there’s an attractive young woman with a medicated smile, being welcomed back into the world of more accepted addictions. The first steps we must take toward getting better, it would seem, would be to stop aggravating the illness by adapting to a brutal system, and to stop masking the sypmtoms caused by our American obsessions.

Posted by: Copeland | May 18 2008 18:21 utc | 12

Awww, poor raccoon ;-(
Thanks for that Mr. Abetter Lief, I love reading powerful stuff like that and it’s lessons… and thanks also to the rest of you guys, that’s why I come here, biblio-therapy as it were.

Posted by: Uncle $cam | May 18 2008 19:30 utc | 13

We Americans are like home schoolers getting abstinence-only hygiene education, and b is like the loose girl who shows us how the parts fit when we get all confused.
Competitive arms procurement is very slick as a thumb in the eye for Uncle Sam. The Saudi’s armed forces are vestigial, though. If this were to really, really get out of hand, then we might see the technical assistance contracts start to get affected, like CACI’s or BAH’s (or Carlyle or whatever BAH is called now) because that’s where they put the spooks. If they poke out our eyes and ears, the shit will hit the fan.

Posted by: …—.. | May 18 2008 21:29 utc | 14

try taking this and call me in the morning

Posted by: anna missed | May 18 2008 22:08 utc | 15