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Zeihan: The American Retreat, Part I: Oil
[Zeihan mail list]
In a pair of posts U.S. President Donald Trump asserted:
Diction and statistical issues aside, these tweets comprise the 92 most important words used by anyone in the past three decades. Trump just made clear the days of America protecting global shipping – particularly of oil shipping in the Middle East – are over.
| Or at least about to be seriously renegotiated: “This is what is costs us us to keep the world safe; what will you do to compensate us? We will no longer do it for free.” |
There is an easy argument to be made that the United States’ shale revolution will make the United States a net exporter of crude oil in the current calendar year, but to understand just how critical that is for the Americans we must first pick apart just how horrible that is for everyone else.
| Head to the link to read! |
End result? Today’s oil markets comprise the greatest concentration of risk in the most critical economic sector at the most vulnerable part of the global system and no one can do anything about it if the Americans leave.
And that’s just the beginning.
| Oil is not the only thing being shipped around the world. A goodly portion is either raw materials and finished goods being shipped to American customers or raw materials and finished goods being shipped from American suppliers. So the American Navy will not completely get out of the business of patrolling the sea lanes. |
Posted by: 3dc 2019-06-26 |
