Wednesday, February 23, 2011

Peace in the middle east?

Are we really about to see peace in the middle east?  I doubt it, but it seems that the people of middle eastern countries are finally standing up for themselves and demanding equal rights.  It makes sense that this all starts now.  With the technological advances that are in place, they can see how people live in already established governments, and then compare that to there current situation.  What makes us better than them?  Absolutely nothing, they are people to.  They just have a disadvantage because of where they were born. 
Us that are born in the U.S.A. are spoiled, and we have high expectations of privileged lives.  People in middle eastern countries don't have those same feelings.  They are starting to stand up and fight for their rights though, which is the first step in progress.  Democratic rule in the middle east would be good for the U.S.A. in multiple ways.  We can get cheaper oil, and we can exploit those people into their industrial age. 
Right now oil is going up, which in return is causing the price of gasoline to increase as well.  This rise is because of the unrest that is happening in the middle east right now, specifically Libya, which is the 18th largest oil producing country in the world.  When all of the unrest settles though, and we are left with peace, the production will return to normal levels, and the price of oil will drop, which then in return will allow the price of gasoline to drop.  Here is why I think peace will cause cheaper gas here though.  Without a greedy dictator lining his pockets with the money from oil production, the money will be used on different aspects for improving the lives of people in those countries.  That is more expensive than lining the pockets of one man, so those countries will need to produce more oil, to get more money to handle all of the community projects.  If the supply of oil increases, but demand stays the same, then that will cause the price to drop. 
Now about there industrial ages.  I'm not sure of the current production capacity of countries in the middle east, but if we promised to create jobs that will stimulate growth in there country then the production will increase.  Essentially if we can convince 2 or 3 of these countries to produce textile goods, that will decrease our dependency on China.  Without being dependent on China for cheap goods, that will decrease our current trade deficit.  As long as China is our largest trade partner we will always have a trade deficit because they peg the Yuan to the Dollar and don't let it float naturally.  This is done on purpose by the leaders of the Chinese government so that they can become the largest exporter in the world.  So if we don't have to depend on China for cheap textiles, and we can get other countries were we will have a greater influence over, that will decrease the cost of imports.  Decreasing the cost of imports will lower our trade deficit, which is good.  It will also decrease the growth of China, which will stall there growth because they won't have as much revenue flowing in. 
Everything that is happening in the middle east is making life more expensive now, but in the end it will be for the greater good of the world, and the people of the U.S.A.  We just need to figure out which one of these countries we can turn into a mutant China.  One that we can control, and won't peg there currency to the Dollar.

Thanks for Reading,
Dustin Dominiak

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