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Behold the Rise of Energy-Based Fascism (Part II)

By Michael T. Klare, Tomdispatch.com. Posted January 20, 2007.


What lies in our future may well be a blend of conflicts between rising and declining energy superpowers and a state-protected nuclear renaissance.
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This is part II of Michael Klare's two-part series. Go here to read part I.

Not "Islamo-fascism" but "Energo-fascism" -- the heavily militarized global struggle over diminishing supplies of energy -- will dominate world affairs (and darken the lives of ordinary citizens) in the decades to come. This is so because top government officials globally are increasingly unwilling to rely on market forces to satisfy national energy needs and are instead assuming direct responsibility for the procurement, delivery, and allocation of energy supplies. The leaders of the major powers are ever more prepared to use force when deemed necessary to overcome any resistance to their energy priorities. In the case of the United States, this has required the conversion of our armed forces into a global oil-protection service; two other significant expressions of emerging Energo-fascism are: the arrival of Russia as an "energy superpower" and the repressive implications of plans to rely on nuclear power.

Energy Haves and Have-nots

With global demand for energy constantly rising and supplies contracting (or at least failing to keep pace), the world is being ever more sharply divided into two classes of nations: the energy haves and have-nots. The haves are the nations with sufficient domestic reserves (some combination of oil, gas, coal, hydro-power, uranium, and alternative sources of energy) to satisfy their own requirements and be able to export to other countries; the have-nots lack such reserves and must make up the deficit with expensive imports or suffer the consequences.

From 1950 to 2000, when energy was plentiful and cheap, the distinction did not seem so obvious as long as the have-nots possessed other forms of power: immense wealth (like Japan); nuclear weapons (like Britain and France); or powerful friends (like the NATO and Warsaw Pact countries). Needless to say, for poor countries possessing none of these assets, being a have-not state was a burden even then, contributing mightily to the debt crisis that still afflicts many of them. Today, these other measures of power have come to seem less important and the distinction between energy haves and have-nots correspondingly more significant -- even for wealthy and powerful countries like the United States and Japan.

Surprisingly, there are very few energy haves in the world today. Most notable among these privileged few are Australia, Canada, Iran, Kazakhstan, Kuwait, Nigeria, Qatar, Russia, Saudi Arabia, Venezuela, Iran, Iraq (if it were ever free of conflict), and a few others. These countries are in an envious position because they do not have to pay stratospheric prices for imported oil and natural gas and their ruling elites can demand all sorts of benefits -- political, economic, diplomatic, and military -- from the foreign leaders who come calling to procure copious quantities of their energy products. Indeed, they can engage in the delicious game of playing one foreign leader against another, as Kazakhstan's President, Nursultan Nazarbayev -- a regular guest in Washington and Beijing -- has become so adept at doing.

Pushed even further, this pursuit of favors can lead to a quest for political domination -- with the sale of vital oil and natural gas supplies made contingent on the recipient's acquiescing to certain political demands set forth by the seller. No country has embraced this strategy with greater vigor or enthusiasm than Vladimir Putin's Russia.

The Rising Energy Superpower

At the end of the Cold War, it appeared as if Russia was a forlorn, wasted ex-superpower, impoverished in spirit, treasure, and influence. For years, it was treated with disdain by American officials. Its leaders were forced to swallow humiliating agreements like the expansion of NATO to Moscow's former satellites in Eastern Europe and the abrogation of the Anti-Ballistic Missile Treaty. To many in Washington, it must have seemed as if Russia was little more than a relic of history, a has-been never again slated to play a significant role in world affairs.

Today, Moscow, not Washington, seems to be enjoying the last laugh. With control over Eurasia's largest reserves of natural gas and coal as well as enormous supplies of petroleum and uranium, Russia is the new top dog -- an energy superpower rather than a military one, but a superpower nonetheless.

First, a look at the big picture. Russia is the absolute king of natural gas producers. According to BP (the former British Petroleum), it alone possesses 1.7 quadrillion cubic feet of proven gas reserves, or 27% of the total world supply. This is even more significant than it might appear because Europe and the former USSR rely on natural gas for a larger share of their total energy -- 34% -- than any other region of the world. (In North America, where oil is the dominant fuel, natural gas accounts for only 25% of the total.) Because Russia is by far the leading supplier of Eurasia's gas, it enjoys a position of supply dominance unmatched by any energy provider -- except Saudi Arabia in the petroleum field. Even in that realm, Russia is the planet's second leading producer, falling just 1.4 million barrels short of Saudi Arabia's 11.0 million barrels per day at the start of 2006. Russia also possesses the world's second largest reserves of coal (after the United States) and is a major consumer of nuclear energy, with 31 operational reactors.


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Michael T. Klare is a professor of peace and world security studies at Hampshire College in Amherst, Mass., and the author of Blood and Oil: The Dangers and Consequences of America's Growing Petroleum Dependency.

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Klare paints this Energy-based Fascism as a State problem, but it's a global elite Empire problem.
Posted by: amacd on Jan 20, 2007 8:33 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Klare concludes with, "All the phenomena discussed in this two-part series --(snip)-- are expressions of a single, overarching trend: the tendency of states to extend their control over every aspect of energy production, procurement, transportation, and allocation."

Everything that Klare notes leading up to his projection of an new level of energy-based fascism is exactly correct, and Klare's projections would be exactly correct if this were the 20th century. In fact, conflicting elite rulers in each of the major nation-states of the 20th century would be very comfortable with Klare;s analysis --- because they actually played out this awful game in the 20th century.

But now in the 21st century, the 'great game' for oil, energy, military power and survival will be played differently than the nation-state oil-wars (and fascism) of the 20th century.

In the 21st century there will be no conflicting political elites, using their respective nation-states and militaries to battle for scarce oil and survival. The one point that Klare misses is that the 21st century is the first century of "globalization" ---- the globalization of a unified corporate elite Empire.

While the competing overt Empires of Britain, Germany, Japan, Russia (and the veiled empire of the USA) fought two world wars, and a cold war, over the right to monopolise oil in the 20th century, the new 21st century solution of "globalization" is a 'solution' of the corporate, financial ELITE if no one has noticed!

The rules of 'globalization' (as some of the portestors in Seattle noticed) have nothing to do with incorporating humna issues of employment, welfare, environmentla justice and the like --- but have everything to do, and only focus on agreements about capital flow, 'free' trade, consistant corporate laws, and absence of individual 'nation-state' regulations. In other words, the only progress and enforcable measures related to 'globalization' are those promugated, entrenched,a dn enforcable in the interests of a global capitalist elite Empire, precisely over the objections and citizen interests of 'nation-states'.

No, unfortuately, Klare's projections are right on-target as far as they go ----- but the end point of his projected energy-based fascism is no longer the 20th century nation-states (regardless of their claimed interests for their citizens) ---- it is to be a global corporate elite Empire of the 21st century that has learned to bury their separate elite interests and join together in now burying anything else that get's in the way of their common elite interest.

When Bush said of Putin, "I looked into his soul and knew we could do business", that is exactly what Bush really meant ----- "you are a brother elite, and we can do global business together, without a thought of our peon citizens."

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It was a dark and stormy night...
Posted by: thoughtcriminal on Jan 21, 2007 9:55 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Carter was kicked out for even mentioning renewables - the oil empire would not support even half-hearted measures aimed at weaning the world off of fossil fuels. The deals that had been arranged with the Saudis after the early 70's oil shock, in which oil sales would be in dollars and those dollars would be reinvested in the US economy (petrodollar recycling, of which the BCCI scandal was just a part) set the stage. The story is told in John Perkins "Confessions of an Economic Hitman" as well as in Dan Briody's "The Iron Triangle" - and Michael Klare has also discussed the issue of Saudi arms purchases from US contractors and contracts with US engineering and oil firms (Bechtel and Halliburton-KBR). A lot of people became 'fabulously wealthy' - but now the chickens have come home to roost.

You can only rob Peter to pay Paul for so long...we could have been running our entire economy on domestic fossil fuel production coupled with a variety of renewable energy strategies, including solar electricty and solar heating, wind power, biofuels, all coupled with highly energy-efficient technology, those technologies were completely buried and choked off the moment Reagan walked into the White House.

You see, with renewables the commodity issue is changed - for solar and wind, the commodities are the solar panels and wind turbines - and unlike sales of SUV's and diesel generators, the fuel for solar and wind is free - so the commodity sales drop.

Commodity traders were cheering after the 9/11 attacks on the WTC because gold went through the roof; they were cheering on the invasion of Iraq because oil would go through the roof; and guess who the main backers of an attack on Iran are? These cash flows sustain the global corporate empire... but it's a dead-end street; a juggernaut charging over a cliff.

Ethanol is slightly different; it's an agricultural commodity, which is why the global empire (Woolsey, etc.) is, in some sense, supporting it's develpment - but only if ethanol production remains tied to fossil fuel use - they are certainly not supporting sustainable ethanol production free from petrochemicals and fossil fuels.

We need a change of such drastic proportions that it is at, first glance, very daunting. However, it must be done, especially when you consider the looming threat of global warming. As Michael Klare points out, nuclear power is no solution whatsoever. In fact, the centralized control of nuclear power (i.e. the ability to throw the switch and shut down electricity for entire countries) is probably why the empire managers are so thrilled by it - and look at General Electric - their stock is up 12% after Bush cut the deal with the Indian government on nuclear production - you know that was a kickback to GE, who will be selling India the reactors.

Banning foreign oil and gas imports entirely would be the rational thing to do - and all that cash could be used to build the renewable energy infrastructure, and to do more research into sustainable agricultural production and cheaper and more efficient solar power.

One other thing - while there are no 'good guys' in the global oil struggle, notice the the 'unrest' in Chechnya was almost certainly supported by the Bush-Saudi axis, which has been behind a lot of the 'global Islamic terrorism' ever since Reagan took power and they began funding the Afghani mujahedeen 'freedom fighters' - (it actually goes back far earlier, to CIA support for the "Muslim Brotherhood" as a bulwark against communist influence in the Middle East in the 60's) but (as usual) they lost control over the monsters they created, such as Saddam Hussein and Osama bin Laden.

We need to acknowledge the idiocy of attempting to maintain a global American-British empire, and really (for real, this time) focus on energy independence based on renewables.

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Please help me to understand...
Posted by: Sojourner on Jan 21, 2007 10:08 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
...So, is Klare's prime suspect for an example of his version of fascism, Putin, doing something that is harmful for the Russian people?

Is Putin doing something that every head of state shouldn't be doing--employing the state's resources to advance the interests of that state?

Cannot all of Klare's horrified comments about potential targets for terrorists apply nearly equally as well to existing facilities--ports, existing reactor sites, refineries, infrastructure, etc., etc--as to his imagined conditions for centralized energy in the future?

Is he paid by Big Oil and Big Energy to promote continued private exploitation of energy resources? If not, they're getting lots of free advocacy from him.

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All Jewish-Russian Oil Elites Have Fled or are Fleeing Russia -- they're under seige now!
Posted by: Aufklaerung_Baboon on Jan 21, 2007 11:49 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
What this article won't tell you is that many of the elites controlling YUKOS and other massive Russian oil companies were very international minded Russian Jews, most them now having fled to Israel, the UK, or the U.S. The ones that couldn't or didn't flee are currently in prison, or are under close surveillance by Putin's government. This is just an example of Russians taking their resources and country back from a greedy elite -- the class struggle of the 21st Century.

The arrest of Mikhail Khodorkovsky was partly motivated by anti-Jewish (yet pro-Russian) sentiment, but you won't hear much about that in the mainstream media. Nor will the media tell you that when Knodorkovsky was going down he transferred his share of YUKOS to a good ol' Rothschild, London banker Jacob Rothschild (another member of 'the tribe'). Arrested oil tycoon passed shares to banker


Nor will you hear much about Russian Jew Leonid Nevzlin (Leonid Nevzlin). Subsequent to Khodorkovsky's arrest, Leonid Nevzlin gained a controlling stake in Yukos when Khodorkovsky handed him a 60 percent share in the holding company that controlled the firm; he then CEO for a while after Khodorkovsky had been detained. Nevzlin is himself now wanted in Russia and has since fled to Israel; he has close ties to the U.S. as well, and is wanted in Russia for questioning as a suspect for the poisoning death of Alexander Litvinenko (the radiation poisoning death that's been all over the news). Israel refuses to deport him to Russia for questioning because, you know, he's an internationally powerful and VERY rich oil industrialist.

And what about Boris Berezovsky (Boris Berezovsky), another Russian Jew that has been involved in corporate oil scandals in Russia. He's currently in 'exile' in the UK. During the 1990s he acquired stakes in several oil properties that he organized into Sibneft, paying a fraction of the companies' book values. Berezovsky established a bank to finance his operations and acquired several news media holdings as well. These media holdings provided essential support for Yeltsin's re-election in 1996.

And Roman Abramovich? Just another Jewish-Russian oil billionaire with highly questionable (i.e. monopolistic) business practices, a man with close ties to the U.S. & UK and the other international oil elites residing in those countries -- Roman Abramovich.

Remember, this about the RUSSIAN PEOPLE taking back THEIR resources and tax funds from a greedy, cannabilistic elite that was defrauding the government of tens of billions in taxes a year. Many of these oil companies are now technically bankrupt because they owe the Russian government billions in back taxes, though they of course keep on running since they have been taken over by the state now. The de-privatization of these monolithic corporations was for the good of the people, for the distribution of this oil wealth to the state and workers and citizens rather than a few dozen leading members of the companies.

Many times in recent years, any people that opposed the monopolistic practices of these Jewish-Russian economic elites were killed, poisoned, assassinated, or othwise died under 'mysterious circumstances.' This includes some journalists and others that have made recent headlines because of their ruthless killings. Anyone that dare spoke up was often silenced via murder. This is still happening in Russia and other places in the former USSR, even to this very day. But the people and the government are doing what they can to take their country back from the very few people that make obscene and illegal profits from what should be state property.

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