Something about this Danziger cartoon pinged my liberal radar, and when I asked some associates about it, one of them immediately picked up on the point. But I decided to leave it alone in that sense. After all, Danziger is a bright mind and a gifted cartoonist.
Jeff Danziger, June 30, 2008
Nonetheless, a question still nags at me. Five points to anyone who can spot the issue, and another five (and much gratitude) to anyone who can explain the point to me. I suppose I could write Mr. Danziger and ask, but it’s more fun this way. What am I missing?
There is something to be said for the obvious, although we can be sure there is somewhere an economist, politician, or pundit willing to explain why the prescription suggested by Michael T. Klare, writing for the Toronto Star would not be a particularly effective palliative for the spiraling costs of oil:
… the Bush administration’s greatest contribution to rising oil prices is its steady stream of threats to attack Iran, if it does not back down on the nuclear issue. The Iranians have made it plain that they would retaliate by attempting to block the flow of Gulf oil and otherwise cause turmoil in the energy market. Most analysts assume, therefore, that an encounter will produce a global oil shortage and prices well over $200 per barrel. It is not surprising, then, that every threat by Bush/Cheney (or their counterparts in Israel) has triggered a sharp rise in prices. This is where speculators enter the picture. Believing that a U.S.-Iranian clash is at least 50 per cent likely, some investors are buying futures in oil at $140, $150 or more per barrel, thinking they’ll make a killing if there’s an attack and prices zoom past $200.
It follows, then, that while the hike in prices is due largely to ever-increasing demand chasing insufficiently expanding supply, the Bush administration’s energy policies have greatly intensified the problem. By seeking to preserve an oil-based energy system at any cost, and by adding to the “fear factor” in international speculation through its bungled invasion of Iraq and bellicose statements on Iran, it has made a bad problem much worse ….
…. And if this administration truly wanted to spare Americans further pain at the pump, there is one thing it could do that would have an immediate effect: declare that military force is not an acceptable option in the struggle with Iran. Such a declaration would take the wind out of the sails of speculators and set the course for a drop in prices.