Reuters examines oil prices: with an OPEC meeting imminent, crude prices have stabilized, as analysts expect to see the group agree to maintain its 'official output target stable around $70'.  Russia is surpassing Saudi Arabia in oil exports for the first time in the wake of OPEC production cuts.  'In no uncertain terms, Russia has been the biggest beneficiary of OPEC's sacrifice', says strategist Chris Weafer.  Saudi Arabian Oil Minister Ali al-Naimi believes that the current crude prices - between $68 and $73 a barrel - are acceptable for producers and customers alike.  Energy Minister Sergei Shmatko has met with Iraqi Prime Minister Nuri al-Maliki in an attempt to pursue Russia's aim of reviving Saddam Hussein era oil deals.  President Medvedev says that Russia must refuse requests for Ukraine to prepay natural gas transit fees, (with Kiev prepaying more than ...

From Megan Stack's article in the Los Angeles Times:"There's no future in Russia for pro-American policy," said Nikolai Zlobin, director of the Russia and Eurasia program at the World Security Institute in Washington. "You can build your whole career based on anti-American policy -- build a political career, become a famous journalist or public figure. But if you promote the idea of friendship with America, you'll be denounced immediately." The Cold War is a faded relic in American memory. Now there are Iran and North Korea to worry about; a few years ago, there was Saddam Hussein. And so it is perhaps easy to forget that, in Russia, the Cold War remains a poignant and powerful idea. Talk of current events often conveys the distinct sense that Russia is clinging to the idea of an American threat. If there is no hostility with the United States, the ...

Suddenly, and with little warning, geopolitical risk is back. With all the thundering force of an underground nuclear explosion, our heads are turned to the globe’s unstable flashpoints once again… Suddenly, and with little warning, geopolitical risk is back.

Not that it ever really left, of course. Preoccupied with a sea of financial troubles, the world had simply put it out of sight and out of mind for a while.

Now, with all the thundering force of an underground nuclear explosion, our heads are turned to the globe’s unstable flashpoints once again…

North Korea: “Look at Me”

In North Korea, the Kim Jong Il Regime has just conducted a fresh nuclear test (and fired three short-range missiles). “World leaders reacted with outrage,” according to CNN, in response to the unlawful test. The U.N. Security Council held a special emergency session to “condemn”

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By Peter D. Schiff
Guest Columnist
Money Morning

[Editor’s Note: Peter D. Schiff, Euro Pacific Capital Inc.’s president and chief global strategist, is a well-known author and commentator, and is a periodic contributor to Money Morning. Schiff is the author of two New York Times best sellers: “The Little Book of Bull Moves in Bear Markets,” and “How to Profit from the Coming Economic Collapse.” For a more-detailed analysis of the nation’s financial problems, and the inherent dangers that these problems pose for both the U.S. economy and for dollar-denominated investments, click here to download Euro Pacific’s new financial-research report, “The Collapsing Dollar: The Powerful Case for Investing in Foreign Securities.”

In the midst of an ongoing financial crisis that’s eradicated trillions of dollars in shareholder wealth, the profit search facing U.S. investors is tougher than ever. The uncertainty surrounding the economic-stimulus and …

Somebody out there in academia should really do a study of how various authoritarian states throughout history have continued to organize elections, despite a glaring lack of democracy.  For some, the election has always been an exercise in mockery - leaders such as Fidel Castro, Robert Mugabe, and Saddam Hussein always seemed to enjoy impossible margins of victory with over 90% of the vote in their favor.  Other countries, which may be described less as authoritarian and more like adjective-laden democracies, practice a much more subtle manipulation of the process - often focused on barring any competition and other measures to skew the level playing field - and end up with more reasonable, yet always predictable, margins of victory.Hugo Chavez's regime in Venezuela, for example, may have mastered ...

Here I provide some more background on the relation between oil price increases and economic recessions.

When I first began working on my Ph.D. dissertation in 1980, I was intrigued by the fact that the oil embargo of 1973-74 and the collapse in Iranian oil production after the revolution in 1978 were both followed by global recessions. But when I called attention to the fact there had been a sharp increase in the price of oil prior to 6 of the 7 postwar U.S. recessions up to that point, the general response was one of skepticism.

By the time I was presenting evidence of this relation at various seminars in 1981-82, the Iran-Iraq War had produced yet another shock to world oil markets and the NBER declared that the U.S. experienced a new recession immediately on the heels of the previous downturn, meaning that the evidence had now become that

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The latest Economist has an interesting piece on Iraq’s growing private sector, which may have all the potential in the world, but is untested, and also exists on shaky political and social ground. “Under Saddam Hussein’s dictatorship, the state controlled everything from interest rates to jobs at the bloated state-owned enterprises (SOEs) that dominated the economy.” However, since the regime’s fall, production in many of these enterprises has fallen to 10% of capacity or less. The task now is “to find companies and investors to put capital and know-how into Iraq’s SOEs and private firms” and get the economy running again.

The scheme has already notched up a few successes. Take Iskandiriyah, a manufacturing town. The Task Force arrived in late 2006 to restart the many factories once run by two SOEs there. Today they are producing machine parts, trailers and machinery for the oil

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...is repudiation of the no-nothing-ness of the past. From Bloomberg:

Dec. 7 (Bloomberg) -- President-elect Barack Obama said the nation owes its military veterans "a sacred trust" and named retired four-star General Eric Shinseki to make the U.S. Department of Veterans Affairs "a 21st century" system.

"No one will ever doubt that this former Army chief of staff has the courage to stand up for our troops and our veterans," Obama said at a press conference in Chicago, held on the anniversary of the 1941 attack on Pearl Harbor. "No one will ever question whether he will fight hard enough to make sure that they have the support that they need."

Shortly before the 2003 U.S. invasion to oust Iraqi dictator Saddam Hussein, Shinseki told Congress it would take several hundred thousand troops to stabilize postwar Iraq, more than then-Secretary of Defense Donald Rumsfeld had estimated.

Rumsfeld roundly rejected Shinseki's

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One way for the US economy to escape its doldrums will be for the country to expand its exports. Everyone’s great American hero, President Ronald Reagan, knew that.

Declassified US government documents show that in the 1980s while Iraq’s Saddam Hussein was involved in the genocide against his country’s Kurdish population (using poison gas), the US opposed punishing Iraq with a trade embargo.

The reason was simple. It was cultivating Iraq as an ally against Iran and as a market for US farm exports.

According to the documents, the Reagan administration “got carried away with their own propaganda. They began to believe that Saddam Hussein could be a reliable partner.”

Kinda makes you wonder if Osama bin Laden were to come out of hiding and start his own country if the US wouldn’t try to, once again, be his friend… make him a trading partner.

Source:

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This is an excerpt from an interview with the French Mid-East scholar Gilles Kepel: Q. What is your advice for the next president of the United States? A. After Iraq, it is clear that American military might is no longer a sufficient gateway to power. America has to work with its allies. That is one of the great lessons of a post-neocon world. A few years ago, Condoleezza Rice said that in the Middle East, the Americans will do the cooking and the Europeans can do the dishes. Can you imagine the national shame for the French, who are so keen on gastronomy, to have America — the nation of McDonald's — insist that they will do the cooking? That was hard to swallow. But in all seriousness, Europe needs to get back in the kitchen. America ...