Tuesday, October 19, 2010

The Great Game

I strongly suggest you read Charles Hugh Smith's recent blog post on Oil, China and his reading of Global Geopolitics:

The Great Game: Geopolitics and Oil
Geopolitics is not called The Great Game without reason. The game of dominating the world's resources, nation-states and alliances is like a combination of Go and chess, with the threat of military conquest or defeat always hovering over the statecraft and financial game...

I recommend the article for two reasons. One, because I think it is a cogent analysis of how power really works (and because I agree with him on the expectations of a coming collapse in oil prices - a "head fake" that few are expecting) and because it reveals quite a number of silver linings in the stormclouds that seem to crowd the horizon.

We often dwell on the absurdities and negative aspects of the USA's current position in the world. Mr. Smith's article is a good reminder that there is still a firm base upon which to build a better country once the Great Collapse reaches its howling end point.

1 comment:

David said...

Thanks for the tip to read Mr. Smith's column, it is thought-provoking.

Did I miss something, however? He astutely notes that the costs of America's "Hard Power" are borne by the rest of the world via dollar hegemony, but dollar hegemony seems dependent upon the open capital flows he suggests will be ended during the global financial crisis.

If that's true, then the only way to maintain 11 carrier battle groups and all the expensive crap that goes with them will be to ruin an already ruined U.S. Middle Class by dramatically raising already ruinous taxation.

To me, this is impossible. The Military Industrial Complex cannot both consume taxes, employ everyone, and those folks sustain the game by paying taxes. The MIC is not itself productive.

Mr. Smith posits a condition that is far more benign toward the USA than I think is likely.