-Caveat Lector-   <A HREF="http://www.ctrl.org/">
</A> -Cui Bono?-

from:
http://www.americandispatches.com/
Click Here: <A HREF="http://www.americandispatches.com/">American Dispatches</
A>
-----
Latest News
February 25, 2000
Is the presidential campaign a factor in surging oil prices?

The Clinton administration is baffled by the role of Kuwait in driving up oil
prices to the $30-a-barrel range, a near threefold increase. The price hike
is creating inflationary pressures that could lead the Federal Reserve Board
to raise interest rates again and threaten the long-running bulls on Wall
Street.

Noting Kuwait's key role in boosting prices, one American oil expert
complained to The New York Times that Kuwait's behavior was strange given the
fact that the United States went to war nine years ago to free Kuwait from
Iraqi occupation.

"That's gratitude for you," groused the expert. [NYT, Feb. 24, 2000]

But there is a different way of assessing where Kuwait might be placing its
gratitude. After all, it was President George Bush who led the coalition that
decimated the Iraqi military force and restored the sheikh and other members
of Kuwait's royal family to their luxurious mansions.
Kuwait's royal family could be demonstrating its gratitude to the Bush
family. Kuwait's actions could undercut the Clinton-Gore economic successes
and could contribute to a more restless U.S. electorate in November.

After a summer of sharply higher gasoline prices and months of declining
stock portfolios, the American voters might not be as eager to see the
continuation of Clinton-Gore policies as they might be otherwise. Vice
President Gore would have to explain a suddenly beleaguered U.S. economy.

Clearly, Bush's eldest son, Texas Gov. George W. Bush, would stand to gain,
if he is the Republican nominee in the fall.

But, it should added, there is no evidence that any intermediary from the
Bush family has encouraged these Kuwaiti-led oil price hikes or that the
Kuwaitis consciously are trying to influence the November elections.

Meanwhile, the Clinton administration has moved to counter the oil-price
threat. On Thursday, Energy Secretary Bill Richardson convinced the Kuwaitis
to soften their hard-line position, at least slightly. But whether the
Kuwaitis will acquiesce to higher oil production -- and somewhat lower prices
-- is still unclear.

In another oil-related move, the Clinton administration is considering easing
economic sanctions on Iraq. The administration justifies this possible
relaxation on humanitarian grounds. But the step would let Iraq release more
oil into the world market and take some of the pressure off international oil
prices.

What is clear is that the "Great Game" of Middle Eastern oil politics is
never too far removed from the hardball game of power politics in the West.

------------------------------------------------------------------------
For solid investigative journalism that you won't see anywhere else, check
out:

For a double-take on media and democracy, check out the American Review,
edited by Jane W. Prettyman, formerly at (the old) Esquire Magazine.
-----
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