Iran’s Own Oil Nightmare!

Barack Obama’s promise to negotiate with Iran once seemed like a dubious idea to Thomas Friedman—pre-conditions or not, the US had no leverage. But every thing’s changed now that the price of oil is at $57 and falling, writes the New York Times columnist. Once the mullahs went on a “domestic subsidy binge” to quell dissent, but now galloping inflation and high unemployment can’t be swept under the Persian carpet.

“After all,” writes Friedman, “it was the collapse of global oil prices in the early 1990s that brought down the Soviet Union. And Iran today is looking very Soviet to me.”

It is amazing just what the price of oil can do to/for a country. It can drive a world economic power back into the Stone Age, and it can elevate a country with barley enough running water to hydrate themselves into bullies. Iran used oil subsidies as the velvet glove. If they have to use the iron fist there are too many in that country that would rather see a bloody revolution than another generation starve at the hands of the Iranian leaders.

Back in the States, $60 oil looks great considering nothing else seems to be working. Bailouts, rate cuts, political intervention; nothing is getting this economy moving. I just couldn’t imagine what the economy in the U.S. would look like if oil was still at $150!