A Pump War?

The Russians have noticed. How could they not? They’ve seen this play before. The Russian newspaper Pravda published an article on April 3 with the headline, “Obama Wants Saudi Arabia to Destroy Russian Economy.” It said: “There is a precedent [for] such joint action that caused the collapse of the U.S.S.R. In 1985, the Kingdom dramatically increased oil production from 2 million to 10 million barrels per day, dropping the price from $32 to $10 per barrel. [The] U.S.S.R. began selling some batches at an even lower price, about $6 per barrel. Saudi Arabia [did not lose] anything, because when prices fell by 3.5 times [Saudi] production increased fivefold. The planned economy of the Soviet Union was not able to cope with falling export revenues, and this was one of the reasons for the collapse of the U.S.S.R.”

Indeed, the late Yegor Gaidar, who between 1991 and 1994 was Russia’s acting prime minister, observed in a Nov. 13, 2006, speech that: “The timeline of the collapse of the Soviet Union can be traced to Sept. 13, 1985. On this date, Sheikh Ahmed Zaki Yamani, the minister of oil of Saudi Arabia, declared that the monarchy had decided to alter its oil policy radically. The Saudis stopped protecting oil prices. … During the next six months, oil production in Saudi Arabia increased fourfold, while oil prices collapsed. … The Soviet Union lost approximately $20 billion per year, money without which the country simply could not survive.”

.. But have no doubt, this price falloff serves U.S. and Saudi strategic interests and it harms Russia and Iran. Oil export revenues account for about 60 percent of Iran’s government revenues and more than half of Russia’s.

Here There Is No Why: For ISIS, Slaughter Is an End in Itself

“I eyed a fine icicle outside the window, within hand’s reach. I opened the window and broke off the icicle but at once a large, heavy guard prowling outside brutally snatched it away from me. ‘Warum?’ I asked him in my poor German. ‘Hier ist kein warum,’ (there is no why here), he replied, pushing me inside with a shove.”

.. “Perhaps one cannot, what is more one must not, understand what happened, because to understand is almost to justify. Let me explain: ‘understanding’ a proposal or human behavior means to ‘contain’ it, contain its author, put oneself in his place, identify with him.” Levi, referring to Hitler, Himmler and the rest, goes on: “Perhaps it is desirable that their words (and also, unfortunately, their deeds) cannot be comprehensible to us. They are non-human words and deeds, really counter-human.”

.. This is an Arab Zero Hour. One other thing: In this fight, I would say, all means are good. The Soviet Union, an ideological rival, was a key ally of the United States in defeating Nazism. It is obvious which nation today can play that role against ISIS. Its name is Iran.

Why Khamenei was ambivalent about Rouhani’s US trip

Commentary: Iran’s Supreme Leader must appease extremists, but without scuttling his president’s diplomatic efforts

To juggle these political interests, Khamenei must carefully manage his own extremist supporters in two ways. First, he must demonstrate that he is their Supreme Leader, resolute and incapable of being bullied by threats from the U.S. and Israel. Second, if diplomacy fails to resolve the issues between Iran and the U.S., Khamenei must be able to claim that he had warned his followers about American untrustworthiness.