Middle East Oil Producers “Played” World Powers After the 1956 Suez Canal Conflict!

Middle East Oil Producers Played World Powers after the Suez Conflict.

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Some say: “World economy will fall if revolts spread to South Arabia,”

Knowing Obama’s Rule I’ve Lived Under for 2+ years, It Is Possible.

What they are saying may well be the best resultant Conclusion.

February 25, 2010


The following direct quote is from page 78 of my first book ‘Tectonic Chaos,’ which
I wrote in 1976.

“The ten horns of Revelation 13:1 are ten Arab nations who will form the nucleus of the final kingdom, and the ten crowns are the power of the kings that will rile them. For years we have pictured the typical Arab as a scrawny little fellow on a camel in the desert with a comic expression on his face. This viewpoint is quickly changing. Oil is replacing the U.S. dollar in international importance – and soon ten Arab nations will have gained economic control of much of the earth’s wealth. We will not try to stop them because of the Soviet Union – and the Soviet Union will not try to stop them because of us and Red China. The world power block will block itself as the Arab nations prosper in our midst.”

End 1976 Quote

Well, it happened, and great fluctuations in oil prices, which are now controlled to a great extent by Islamic nations, are dramatically influencing an already weak world economy

I doubt if the rising price of oil will cause the world economy to collapse, but they will weaken it further, even after it eventually stabilizes.

Begin Excerpt from Bloomberg via World News

Oil-Price Swings Double as Unrest Spreads Before Saudi Talks

By Grant Smith and Lananh Nguyen

Feb 21, 2011 11:11 AM

Feb. 18 (Bloomberg) — John Sfakianakis, chief economist at Banque Saudi Fransi, discusses the impact of civil unrest in parts of the Middle East on the price of oil. He speaks from Riyadh with Linzie Janis on Bloomberg Television’s “Global Connection.” (Source: Bloomberg)

Feb. 17 (Bloomberg) — Mark Gilman, an analyst at Benchmark Co., and David Lubin, chief emerging markets economist at Citigroup Inc., talk about unrest in the Middle East and the impact on the oil market, and the outlook for Exxon Mobil Corp. They speak with Tom Keene on Bloomberg Television’s “Surveillance Midday.” (Source: Bloomberg)

Oil-price swings have doubled this year as unrest spreads through the Middle East, source of one- third of global crude supply, hampering producer and consumer efforts to stabilize the world’s biggest commodity market.

As officials from more than 90 nations including Saudi Arabian Oil Minister Ali al-Naimi and U.S. Deputy Energy Secretary Daniel Poneman gather in Riyadh tomorrow to seek ways of curbing fluctuations, oil’s 20-day historical volatility has risen to 29.4, according to data compiled by Bloomberg.

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It was at 12.6, an all-time low, at the end of December.

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U.S. futures for April jumped as much as 4.5 percent today as violence spread in Libya, holder of Africa’s biggest crude reserves.

Oil has risen to a two-year high, with Brent crude prices in London exceeding $105 a barrel today, as the Middle East turmoil stoked concern that shipments from the region may be disrupted. Libyan leader Muammar Qaddafi’s son warned yesterday that a civil war would risk the country’s oil wealth as security forces attacked protesters, killing more than 200, according to New York-based Human Rights Watch. Nations including Iran and Bahrain are cracking down on opposition groups demanding change amid upheaval that’s toppled leaders in Egypt and Tunisia.

“Prices gyrate wildly with each new headline,” said Mike Fitzpatrick, Energy Overview editor in New York, and a former futures broker at MF Global. “If more moderate and friendly-to- the-West governments like Jordan or Bahrain topple, $100 may not be so ridiculous as it seemed only a few days ago.”

Libyan Oil Production

Shokri Ghanem, chairman of Libya’s National Oil Corp

The following three paragraph quotes were extracted from Wikipedia:

The Suez Crisis, also referred to as the Tripartite Aggression, w


as a war fought by Britain, France, and Israel against Egypt beginning on 29 October 1956.

The attack followed Egypt’s decision of 26 July 1956 to nationalize the Suez Canal, after the withdrawal of an offer by Britain and the United States to fund the building of the Aswan Dam, which was partly in response to Egypt recognizing the People’s Republic of China during the height of tensions between China and Taiwan. Britain and France were also strongly opposed to Nasser’s plan to annex the Sudan.

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Israel feared that Egypt intended to launch an attack against it in March or April 1957 with Soviet support.

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From the British, French and Israeli perspective the crisis had begun on 26 July, and the actual military operation was simply their response to it.

The three allies, especially Israel, were mainly successful in attaining their immediate military objectives, but pressure from the United States and the USSR at the United Nations and elsewhere forced them to withdraw. As a result of the political pressure Britain and France failed in their political and strategic aim of controlling the canal. Israel fulfilled some of its objectives, such as attaining freedom of navigation through the Straits of Tiran. As a result of the conflict, the UNEF would police the Egyptian-Israeli border to prevent both sides from recommencing hostilities.

Begin Excerpt from the Jerusalem Post

‘World economy will fall if revolts spread to S. Arabia’


02/24/2011 04:47

Israeli security expert Gal Luft tells ‘Post’ that military intervention won’t help, stresses importance of breaking oil’s monopoly on transport.

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“If something like we have seen in Egypt or Libya happens in Saudi Arabia, we’re talking about a catastrophic scenario that will bring a global economic meltdown.”

Talking to Gal Luft about security and the effect of oil on

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the global economy is not for the faint of heart. The executive director of the Washington-based think tank the Institute for the Analysis of Global Security spoke to The Jerusalem Post on Wednesday during the fourth annual Eilat-Eilot Renewable Energy Conference, in a 45-minute conversation that described the petroleum tightrope on which the world’s economies are teetering.

“The world needs to wake up to the fact that if a country like Saudi Arabia follows the same path we’ve seen in Egypt, Tunisia and Libya, it would be a very, very dangerous situation for every economy in the world – the rich and poor alike,” said Luft. “The first thing that will happen is, the poor people of the world will starve; there will be no oil to distribute food in places like Africa.

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Then all the world markets will collapse.”

He noted that “every single recession since World War I except for one has been preceded by an oil crisis.

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When there is an oil crisis, very shortly after, you see a major recession.

The reason that the situation now is so delicate is that we just had a recession. When you have a recession on top of a recession, it’s like a heart attack on a heart attack – you are too weak, you can’t handle it.”

According to Luft, “if we get another oil shock, it can roll back all of the economic recovery we’ve had. Then you will see millions of people losing their jobs around the world.”

To make matters worse, Luft said he didn’t believe that a hypothetical Western-led military intervention to secure Saudi Arabia’s oil fields would help matters.

“Let’s say the US sends the military to take over Saudi Arabia. The oil fields in Saudi Arabia are in the eastern, mostly Shi’ite province next to Iran, so the Iranians will start an intifada there. They’d blow up the fields, they’d blow up the pipelines, they’d boobytrap everything there and you’ll see a situation like Iraq or Afghanistan, just in the world’ s riche

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st oil province,” he said.

“These are very, very dangerous, catastrophic scenarios, so I don’t think sending the military over will make us any safer economically.

It’s very easy to take over an area militarily. It doesn’t mean you can maintain economic activity in the same place.”

If the world’s oil supply is threatened, security issues for Israel would only worsen, Luft added.

“The flipside is that [in such a scenario,] the very same countries we’re trying to weaken, like Iran, would strengthen. What you would see is a historic transfer of wealth from the world’s poorest people to the world’s richest people. Because people in Africa will have to buy oil for the same price that everybody else does; they don’t get a discount for being poor.”

Luft, who is also the co-founder of the Set America Free Coalition – an alliance of national security, environmental, labor and religious groups promoting ways to reduce America’s dependence on foreign oil – said the most crucial necessity was to break oil’s monopoly on the world’s transportation systems.his, he said, could help end the current situation wherein we “base our entire future and prosperity and way of life on a group of dictatorships that might collapse in a matter of a few days.”

“The transportati on sector, which underlies the global ec

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onomy, runs on oil. Your food, your clothes, everything is dependent on oil. We’re all treading on very thin ice if we think about this, like a turkey before Thanksgiving.

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Everything is good, you’re getting your food and you’re happy, and then you wake up and it’s Thanksgiving and life gets very unhappy.”

Luft said the United States must pass laws that would require every new car sold in America be a “flexible fuel” car, arguing that “if you’re running out of oil, then it’s folly to continue to put cars on the road that can only run on oil.”

Luft mentioned conclusions drawn in his book, Turning Oil into Salt: Energy Independence Through Fuel Choice, which describes how salt went from being one of the world’s top commodities to just another resource.

“Salt used to be one of the world’s most prestigious commodities because it had a monopoly on food refrigeration,” he explained. “Then we invented canning, and later refrigeration, and that’s it, you no longer needed to send soldiers to defend salt mines.

Salt became boring. Hopefully the same will happen with oil, making it just another commodity stripped of its strategic power.”

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