Geopolitical Imbalances
A state’s great power status resides in the flow of cheap oil, argues Michael Klare, author of the newly published Rising Powers, Shrinking Planet: The New Geopolitics of Energy. With oil prices hitting another high of $123 this week, and predictions of it hitting $200 over the next two years, the overall impact on American ability to project power, the dollar’s solvency, and its domestic economy may have devastating effects. Another result could be a profound geopolitical shift. In fact we are already seeing it. The rise of India and China, the reemergence of Russia, and a more independent EU are all coming at a time where American power is at best stagnant and at worse shrinking. As Klare notes, “By now, we are transferring such staggering sums yearly to foreign oil producers, who are using it to gobble up valuable American assets, that, whether we know ..read more
