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Thursday, February 24, 2011

New World War?

Are we at the precipice of a new world war? Look at the places that are facing unrest just at this day and time.
  • Algeria-riots, food shortages, unemployment
  • Egypt-riots, food shortages, unemployment, Mubarak out
  • Libya-riots, food shortages, unemployment, Gaddafi firing on protesters
  • Tunisia -riots, food shortages, unemployment
  • Yeman-riots, food shortages, unemployment
  • Sudan-riots, food shortages, unemployment
  • Jordan-riots
  • Pakistan-riots, unemployment
  • Iraq-Taliban,unemployment,suicide bombers
  • Iran-riots, unemployment
  • Pakistan-riots, food shortages, unemployment
  • India-riots, food shortages, unemployment
  • Bahrain-riots, food shortages, unemployment
  • Somalia-riots, food shortages, unemployment
  • Greece-riots, unemployment
  • Italy-riots, unemployment
  • Spain-riots, unemployment
  • Portugal-riots, unemployment
Do you see the pattern here? The question is why is there so much unemployment? You have an area that is mostly controlled by Dictators, Kings, Governments that do not rely on free markets but either dictate every process or put such heavy rules and regulations on all business, that they stifle growth. Then you have the influence of religion. It makes a mix that restricts behavior to the point where it is almost impossible for an entrepeneur. Finally you have an area of the world that has never been completely stable and with outside agitators you have the very great risk of triggering violent conflict.

This means that the Gulf of Aden, the Gulf of Oman, the Straits of Hormuz, the Suez Canal, and even the Mediterranean are all at risk. Where does this leave shipping in the area? We already have ships being hijacked and people being killed off the eastern coast of Africa. What does this mean to the cost of oil and even shipping?

 Algeria is facing the same dangers that Libya is going through. What happens if Algeria falls? We get 1/7 of our oil from Algeria. If it falls, the price of oil will probably sky rocket. The Guardian says that it "is using it's powerful security forces to prevent rioting". What happens if they start doing what Libya is doing, and firing on their own people.

It is not only the loss of oil that we have to worry about, though. With unrest in Libya, Egypt, Tunisia, Yeman, and Sudan, all dealing with major unrest and upheaval, you have both Northern Africa and the Middle East involved in conflict. Will it spread to the rest of Africa? Much of it is already unstable. What about further into Indonesia and the rest of Asia?
We already have most of the Mediterranean involved,what is the risk that it will spread further north into Europe?

Algeria braces for more protests | World news |

A World Craving Oil Is Stirred by Anxiety -

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