Wednesday, March 19, 2014

BATTLE OF THE TITANS OVER UKRAINE

There is a “battle of the titans” taking place in the World. This last couple of weeks the Ukraine has been the focus. The immediate response to that statement is probably to assume that the United States and to Russia are the two titans. If that is so, you are wrong; the two titans are organized sovereign governments verses business or corporation conglomerates. These corporation conglomerates are not well defined but the political power or influence gathered under this title is universally recognized. The world does not elect anyone or any corporation or business entity to this group nor can they elect to join this group; they are members because they exist. Perhaps a name such as ‘business titan’ for this amalgamation would be more appropriate. Let me explain.

I was looking at a map of the Ukraine in respect to gas pipelines running through Ukraine (Google: Image of gas pipeline in Ukraine) and confirmed what had been hinted at in the news; Crimea is not the target of Russia, aggression, but the Ukraine is! Crimea produces a little gas but Ukraine is not only “a” hub of gas pipelines, but is “the” hub from Russia and from the region.  Europe is at the receiving end; he, who controls the pipelines, controls the resource.  

I have written a paragraph summarizing the extent of this “business titan” in respect to oil. Oil company associations with people, the second titan, is implied but is not real; the people have no control over them. This paragraph points out that oil companies controlled by boards of directors or oligarchs are in control. The body politic of countries, the other “great titan” has little to do with any of this, even though the names of specific governments are involved. Who can vote for an oil company board of director member?

Chevron formed Tengizchevroil with the government of Kazakhstan to develop an oil field partnered with Russia’s Lukoil to build a 900-mile long pipeline to transport the oil to the Black Sea port of Novorossiysk then a group of oil companies including BP, Lukoil and Unocal partnered with the State Oil Company of Azerbaijan (SOCAR) to form a consortium called Azerbaijan International Operating Company to develop three offshore oil fields. SOCAR has also collaborated with the National Iranian Oil Company (NIOC), Lukoil and BP Amoco in the Shah-Deniz gas project, which was established without U.S. participation due to the Iranian involvement. 

Oil companies negotiate at the diplomatic level with lesser governments when they have to with the caveat that oil companies are most often in such a controlling position the word ‘negotiate’ has no meaning; essentially they own the government. That is not true in the United States, England, Germany, and Russia for example.    

Historically, this is most clear in the middle east and in South and Central America. The government and the industry kept people ignorant of what they were doing or, because oil had been a major source of energy, and vital to our well-being, when they did know they shrugged at what oil companies were doing around the world. Things changed, as Tom Friedman pointed out in his 2005 book, communications has made The World is Flat, there are people in nations all around the world now fighting to retain the power of the people: Venezuela, Ukraine, and Iran, for example. This is an argument that has rattled about the hall of Congress since the beginning of our nation; who is ultimately in control of government. Our government, along with several other governments has condoned the exploitation of the natural resources of lesser nation around the world. It had been a bipartisan effort for centuries but recently, since about 1980, it has become more polarized; Democrats/liberals stand with the small “down trodden” countries while Republican/conservatives stand with multinational corporations. The relatively recent Supreme Court Citizens United decision has “turned the corner” on the people as a titan, putting the Republican party at the mercy of big business, thus the Courts corruption of democracy took a huge step in creating an unmanageable “business interest titan”; allowing them the equivalent of sovereign status.

At this point, my argument takes an unexpected twist. When we limit the discussion to one commodity, we get the impression we have an “oil dictatorship”. That is not true; the “business titan” is all business interests together but that amalgamation can still be a dictatorship. Dictators in their rush of greed jeopardize their own wellbeing, which is their one weakness. To suggest where all of this is taking us, we have to back up and first look at what is “good for all businesses”. For example, deregulation contributes to maximizing profits. Company responsibility toward employee health and safety is very expensive. Worker pensions cost “companies” money; therefore, decrease their profits. Education cost money so depend on foreign training. Industry must keep wages at a minimum to maximize profits—this is the heart of Reaganomics third world society. After looking at what is good for business, we hope the giant “counter titan”, called people power, comes into play, but the question is, can it, and if so how. There seems to be no answer. The last time this happened, the people left their homelands and colonized America. That option is no longer available.    


Consider all of this in light of the current Ukraine situation. Arguments about a countries status in respect to NATO membership are headline grabbing but the reality is governments of sovereign nations have been subjugated more and more to the “oil business titan”. Among nations in this category, we see Germany struggling with itself. Angela Merkel, Chancellor of Germany, needs to buy gas energy, which is available from Russia via the Ukraine, their current source. President Obama is faced with the possibility of armed intervention in Ukraine but Merkel will not cooperated with the “ether you do what we say or we will blow you up” attitude of a vocal faction in Washington D.C. toward Russia, or even cooperate in Obama imposing severe sanctions on Putin’s Russia. The worldwide business titan does not want to interrupt the flow of all business profits just because of oil. They will not allow Obama to do what is morally right for the people of the Ukraine and stop Putin’s efforts to re-grow Russia for the sake of country and glory when it will cost them big dollars. Obama knows that Putin is hiding behind the mammoth business titan façade knowing that it will protect him from military harm from the United States. The Republican Party operatives also know Obama is a brilliant and peace loving man and will not allow them to goad him into a foolish war; they know he is not like a vain prideful George W Bush. Of course, Obama knows his hands are tied and that the Republican can join Putin in attacking him with all their most condemning rhetoric; feckless, coward, and weak foreign policy charges without fear of him starting a foolish far away war that has already been lost. By the way, did you read how the conservative media praised Putin for his bravery and leadership; they are great patriots the trouble is that their loyalty is to the wrong titan, by that I mean it not loyalty to the people. 

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