TJP

Staying in Iraq: Fool’s Pride?

By Byron A. Ellis – June 09, 2008

McCain is right; the major issue of the 2008 election is Iraq, because the invasion of Iraq is inextricable linked to higher crude oil prices and thus, it is a major contributor to the adverse performance of the US economy.

As long as crude oil futures are operational, gas price hikes will only subside when the conflict in Iraq has been stabilized.

However, unlike the previous election, voters today are fully aware of the impact the Iraq invasion has on their personal income.

McCain acknowledged that he has little understanding of economics. As a result, he perceives Iraq in terms of American pride, winning or loosing the war.

Most Americans, however, perceive the invasion as a deception; a monumental blunder which has adversely affected their personal budget. They recognize that a higher percentage of their budgetary outlays are now allocated to gasoline consumption. Moreover, that the cost of other household necessities have also risen as a result of crude oil increases.

Therefore, McCain’s position on staying the course in Iraq is untenable. Staying the course in Iraq will lead to higher crude oil prices and, eventually, a collapse of the US and world economy.

It is ironic that the inappropriate response to 9-11 has set in motion adverse economic forces that are likely to cripple the US economy.

Last Friday, Israel’s prime minister, Ehud Olmert, indicated that Israel and the US (meaning the Bush administration) are of one mind over the possibility of military intervention against Tehran’s nuclear program. As a result, crude oil traders bid up the price of crude by approximately $10.00 per barrel; some would want the public to believe that the rise was due to demand exceeding supply.

The Republicans, the Bush administration and refinery executives have tried their best to decouple the rise in crude oil prices from regional instability induced by the Iraq invasion. And, as long as they misidentify the root cause of the crude oil price hikes, they will not be able to reverse the rise in prices.

One can assume that either they are clueless, or they understand the consequences of higher crude oil prices, but pride constrains them identifying the true cause and implementing correct solutions. The latter appears to be the case, since McCain and the administration often repeat the pride in victory mantra.

Clearly, though if the cost of pride, staying in Iraq, raises the price of crude oil above $150 per barrel, it is fool’s pride.

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