26.5.16

THE VICTORY DIVIDEND RESOURCE CURSE.

I'm going to do some simple word substitution in Michael T. Klare's Oil World in Chaos and the Desperate Plight of the Petro-States.
Pity the poor petro-states United States. Once so wealthy from oil sales being able to export everywhere that they could finance wars, mega-projects, and domestic social peace simultaneously, some of them are now beset by the punditry fears internal strife or are on the brink of collapse as oil prices trade balances remain at ruinously low levels. Unlike other countries, which largely finance their governments through [income and consumption] taxation, petro-states rely that United States relied on their oil and natural gas tariff revenues.
It's not perfect, but close enough as a first approximation.

For the moment, the mediating institutions and the Enlightenment traditions of the United States are stronger than their counterparts in Mr Klare's dysfunctional three (Nigeria, Saudi Arabia, and Venezuela.)

Deconstruct at your peril.

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