Tag: Oil

A War in Venezuela Will Include China

By Daniel Szewc | Poland

With the confirmation that the Venezuelan police force, under the control of Nicolás Maduro, has started shooting at protesters, the situation in Venezuela has only gotten tenser. This is all happening in the midst of the POTUS, Donald Trump, recognizing Venezuelan opposition leader Juan Guaido as the country’s legitimate president, albeit an interim one. Not only are Maduro’s interests even more at stake now, but the People’s Republic of China’s are also facing a conflict in the region.

The nations of Brazil, Paraguay, Canada, and Colombia have all, within 24 hours, recognized Juan Guaido as the Interim President of Venezuela. This lack of balance of recognition in contrast to power may be the cause of the escalation of violence in the streets of Caracas.

According to Bloomberg, the Chinese government has agreed to extend Nicolás Maduro’s credit line by $5 billion USD. This given sword, as usual in the Eastern dragon’s case, has two edges: Venezuela is obliged to sell China it’s most valuable resource, oil, at a very cheap price. A huge manufacturing economy, China relies on oil for its production of goods, without which their fast-growing economy would fall into ruins.

If the American government decides to intervene in favor of it’s preferred side of Venezuela’s political scene, then a proxy war between China, which majorly invested in Maduro’s army, and the USA is extremely likely to occur. China will be anything but reluctant to give up its neo-colonial acquisition.

Even though this conflict is unlikely to spread outside of North and South America, the ensuing famine and mass migration is sure to destabilize the whole region, as well as possibly hit the United States.


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Privatizing Mass Transit Could Solve the Global Gas Crisis

By Indri Schaelicke | United States

With oil and gas supplies dwindling, it is more imperative than ever that we cut back fuel consumption. For years, experts have been encouraging the populace to find ways to scale back. Easy ways to achieve this include carpooling, keeping vehicles up to standards that maximize fuel efficiency, walking, biking, and using mass transit. Public transportation infrastructure has greatly improved since the dawn of the concept. However, like any publicly funded program, public transportation suffers from several major issues.

Continue reading “Privatizing Mass Transit Could Solve the Global Gas Crisis”

Iran vs The World

By Joshua D. Glawson | United States

From its inception in 550 B.C., the Persian Empire reigned with fervor and might. The Persians carved out their territory that would expand across major parts of Eurasia, keeping the Greeks at bay, as well as other nations in pursuit of their own place in history. Ever since the first establishment of the Persian Nation-State, they have had to fight off other nations and were influenced by them. The biggest change first occurred in 637 A.D. when Persia fell into the hands of the nomadic Arabs at the Battle of Kadisiya which is close to the Euphrates River. Once the Arabs took hold of the Persian Empire, they brought with them Islam and Arabic, which forever changed the Persian language and religion casting out most Zoroastrian practices. Zoroastrianism was not only the main Persian religion of choice, but it is often considered the first monotheistic religion of the world. After a long period of delegation, finding peace under the new regime and identity of the Persian Empire, in 1722 Afghan rebels had a degree of conflict with the Persian Empire, and they pursued the capturing of Isfahan. This seizing of a major city led the way for Russia and Turkey to also plunder their way through Persia, and by 1724 the Russians and Turks split the spoils among their militaries and elite.

By the 1800s to mid-1900s, the British and Americans had tight economic and personal relations with Persia. Although the British and Americans were both there to better petroleum and crude business in their favor, it was only the Brits that were seen as adversaries while the Americans were generally seen in favor by the Persian people. This was surely well-established when many Americans who were living in Persia in the early 1900s fought along the Persians’ and their rights in the Persian Constitutional Revolution from 1905 to 1911.

As quoted in the book, All the Shah’s Men, one person wrote, “…The American contribution to the improvement and, it was felt, the dignity of our impoverished, strife-torn country had gone far beyond their small numbers…Without attempting to force their way of life on people or convert us to their religion, they had learned Persian and started schools, hospitals, and medical dispensaries all over…” They went on to say, “The dedication of these exemplary men and women was not the only reason many Iranians admired the United States. American officials had spoken out to defend Iran’s rights. The United States sharply criticized the 1919 Anglo-Persian Agreement through which Britain acquired colonial powers in Iran.”

“That same year at Versailles, President Woodrow Wilson was the only world leader who supported Iran’s unsuccessful claim for monetary compensation from Britain and Russia for the effects of their occupation during World War I. In the mid-1920s an American envoy in Tehran was able to report that ‘Persians of all classes still have unbounded confidence in America.'” Of course, needless to say, it was also the US President, Woodrow Wilson, who would, unfortunately, lead America out of a more non-interventionist leaning foreign policy, into a hawkish mentality of a pursuit of war and control in the world from WWI to his constant concern for control over the Middle East. To this day, his policies plague American politics creating countless numbers of problems for the US and the world in an onslaught of political blowback.

In 1935, with relations with and influence from Nazi Germany, Persia’s name was changed to ‘Iran.’ This was a cognate of the word ‘Aryan,’ as the Nazis were in pursuit of the origins of the actual Aryan nation of people, and Persia’s leader, Reza Shah, wanted to establish good relations with the growing German powers. Not only was this a means of changing the direction of the Persian nation, but it was also a way of aligning with the Nazis against the British and Russians who had plundered their land for well over a century. This allegiance to Nazi Germany would prove tragic for Iran in WWII, as in 1941, the Anglo-Soviet Allies invaded and ensured the Nazis could not keep reign over the region.

With growing tensions over the following ten years from the British setting up the Anglo-Persian Oil Company also in 1935, Persians’ boiling tempers over increased economic struggles, and the ongoing introduction and implementation of Socialism, after also being struck left and right by the British, Americans, Russians, Turks, Afghans, and others, Iran voted to nationalize the Anglo-Persian Oil Company. The name was then changed to the National Iranian Oil Company. This, then, led to Mohammad Reza Shah officially signing the 1951 declaration that the State was the sole owner of the company, and put Mossadegh as Iran’s Prime Minister.

Mossadegh’s office prompted news outlets around the world to respond and criticize from various perspectives. The British press criticized Mossadegh for being like Robespierre, very Socialistic in a negative way, after Iran essentially stole the company rights. While the US, on the other hand, praised Mossadegh for being like Thomas Jefferson freeing Iran from the British as Jefferson helped to free America from the British. Although, the British interpretation of the events was probably more accurate than the Americans’, both the British and the US colluded together in 1953 to overthrow Mossadegh and return the Shah.

In 1953, the CIA and Britain’s M16 staged a coup in Iran to overthrow Mossadegh because it was clearly evident that he was attempting to allow the Soviets into Iran instead of the Western Allies. The US policy at the time, the Truman Doctrine, stated that the US would come to the aid and defense of any people threatened by Communism. Mossadegh’s introduction of disorder within Iran was eventually the downfall of the Shah and allowed Socialists and Communists to infiltrate Iran ever since.

Iran has been continuously influenced by the outside world in that it has lost most of its military capabilities coming from the 5th largest military power in the world and then losing most of it all by the early 1980s after the Iran-Iraq war. Iran now continues to seek to create nuclear weaponry in order to better negotiate their place in the world and to possibly end many of the sanctions put on them by the US. The US and Iran used to have very good relations and diplomacy prior to the end of the Shah’s reign.

Today, Iranian leaders continue to utilize Diversionary War Theory “which states that leaders who are threatened by domestic turmoil occasionally initiate an international conflict in order to shift the nation’s attention away from internal troubles.”  Many of the economic difficulties are not only due to the government seizing companies especially in the oil and natural gas industries, but also the sanctions brought on by the US. So, it is not as obvious that leaders in Iran are attempting to divert the attention of the economic struggles of Iran, rather there is some justification for their anger towards the US.

Iran’s justified anger with the US was initiated by the US’ infiltration and establishment of Mohammad Reza Shah and continued acts of aggression such as severe economic and travel sanctions, and completely encircling Iran with US military bases and battleships. Furthermore, since the US has now backed out of the Iranian Nuclear Deal that was being led by the Obama administration, Trump’s administration will most likely be reimplementing these heavy economic and travel sanctions, along with several others that are surely to assist in the near total destruction of Iran.

This, of course, is not to suggest that Iran is completely innocent. Iran has innumerable cases of human rights violations and a severally corrupt government which allows paying one’s way out of crimes and completely undermining the private sector as the Iranian government has the power to seize and control privately owned companies at near whim.

Overall, Iran has been shaped, influenced, benefited, and harmed by the international community from almost the beginning. The strife caused through interventionist policies of outside nations and States has also prompted internal domestic conflicts and turmoil for Iran. These instances of influence have led to destabilization and the pessimistic future for Iran. Although Iran has done everything they believed possible to leverage their negotiations by building nuclear weapons and attempting a Nuclear Deal with the US, unfortunately it has thus far failed. Iran’s past one hundred years has already been filled with chaos and confusion, surely the next one hundred will be the same as long as countries outside of Iran continue to intervene and act in hostility towards them; and if Iran continues to violate the rights of individuals within their borders, there is no hope for Iran as a country.


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Venezuela’s New Cryptocurrency Will be Held to an “Oil Standard”

By Owen Heimsoth | VENEZUELA

Earlier this month, President of Venezuela Nicolas Maduro announced his plans to launch a nationwide cryptocurrency called the “Petro” in a televised Christmas stream to the country.

Venezuela is another company crippled by socialism. Their citizens are starving. Their currency is one of the most inflated in the world. The average Venezuelan lost 19 pounds last year through their lack of food.

It is worth noting that about 44% of citizens are on the internet in Venezuela. They are known to have some of the slowest internet speeds in the world. This is due to their extremely poor infrastructure.

Maduro is saying that the creation of this cryptocurrency will be to circumvent financial sanctions.

Maduro said the Petro would help his country “advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade.”

Many leaders, including economist Angel Alvarado, have had their criticisms of this coin. Alvarado said, “It’s Maduro being a clown. This has no credibility.”

The Venezuelan President said that his coin is also to help fight in what he has called a financial “World War” that the US is waging upon him.

He has also promised that gold and diamonds will also be used as backing for the new cryptocurrency. He has made it known that one unit of the coin will be backed up by one barrel of oil. The price of one barrel of oil sits around $66 at the time of writing.

5.3 billion barrels of oil is actually not much for Venezuela. They are recognized to have the largest oil supply in the world at 297 billion barrels of oil. This number was from 2010 so it could be higher. It is still assumed that they still have the largest reserves.