A great summation of the recent history of these three subjects.
Gold Oil and War by B. Parady 25 January 2003 07:04 UTC
The obvious drive of oil and gold to higher prices under the flowering drum song of war, suggests some fundamental economic issues that have threaded through society for at least the last couple of centuries.
Let's start it simply with the founding of California. This one is easy, but the annexation of California to the US was precipitated by the gold rush and what it meant to the US government.
Now let's switch over to the Franco-Prussian war. What was that all about? Some credit France for initiating it to capture the coal fields of the Saar. As it ended, the Prussians annexed the coal rich region of Alsace Lorraine (Lothuringia if you are German) as a key strategic spoil. Interestingly enough, this region was one of the first major oil producing regions, and is the home of Schlumberger, the giant oil services firm.
OK, still no oil, but in the 19th century, the next best thing was coal. After all it provided all that modern petroleum drilling provides: gas, coal oil, chemical stock, and fuel.
Next shift over to the Northern hemisphere. Here we start out with the development of the Panama canal. What is the US looking for here? Coaling stations for the navy, and we get Guantanamo as a tiny spoil, along with Guam and the Philippines.
Later the US goes out and plunks down cash for Samoa and the Virgin Islands as coaling stations for our expanding navy.
Next shift over to the far east and Japan. Roll in the big boys for the first little naval discussion in the Russo-Japanese war. Here we have Port Arthur coaling station being taken by the Japanese along with the coal rich Sakhalin Island.
Now we have set the table with the modern navy and the dreadnought. Britain has developed a ship that needs oil, though they did have coal bunkers on some. The oil was much quicker for fueling and refueling. Britain has a problem here. No natural resources, just like Japan. What to do?
First off, they need to get the gold, so Boers need to go. Filthy beggars.
Germany of course wants to be modern like Britain, but this makes Britain very nervous, and off we go. The French of course want Saar and Alsace-Lorraine again, and now let's party. Hey after all we have the Boer gold to pay for all the party favors.
OK, so they work this out. Some of the biggest oil strikes occur under the dominion of the Hun's greatest ally, Turkey, then possessor of the Arabian peninsula. Well, what has to happen is that France needs its toys, and Britain needs to get its trinkets, so we all need to assemble under the Christmas tree in Versailles, while Wilson, the college president, is trying to push his 14 points on anyone silly enough to care.
So after the War, the UK gets Iraq and Kuwait, along with concessions in Saudi Arabia, and dominion over Aden, Qatar, Musqat and Oman; the French get the oil fields of Alsace and a couple fueling stations. So far fun stuff.
Now, guess who is up to bat? Japan. They like the idea of coal, so Manchuria seems like a great idea. Though with the modern navy, stoking coal is not a whole lot of fun. It is awfully dirty work and it is smelly. Makes a mess out of white naval uniforms.
What to do? Oil is the obvious answer, but gosh darn Japan is a small set of islands. Ok, Ok, let's look around on the map. Yes, I see it, the Dutch East Indies and the discoveries of Royal Dutch-Shell in 1903. What are the Dutch going to do with oil anyway. They got no navy and they are a lousy small country. Time to push these pantywaists out of the way.
But wait, what is between the Dutch East Indies and Japan? Small problem - the US held Philippines. Ok, negotiate with the US to get access to the oil then everything will be fine. The US sees this and Roosevelt hits the roof. He sees the coming domination of the South Pacific by Japan and puts a stop to this nonsense and issues an ultimatum which the Japanese cannot abide.
Party time again, now in Hawaii (no disrespect to those who were injured or fallen, please allow me to make this horrible contrast) with lots of fireworks, along with the Philippines, Singapore, and Indonesia.
If you want to see the role of gold in W.W.II, just look at the hideous scavenging of bodies for dental and ornamental gold by Hitler's minions.
This brings us to the present. There is a crisis in gold or currencies, and a crisis in oil -- the two are not necessarily separable. With cheap supplies running out, the western economies are running out of gas literally.
We are seeing the drums of war offshore of China in the forcible takeover of the Spratleys from the Philippines and Vietnam, merely for the sake of oil rights.
The crisis comes when the OPEC members flip from supplying enough oil cheaply to keep the western economies humming along, to stiffing the west through exorbitant prices. We are seeing the beginnings of the outright political use of oil in Venezuela. Where this will lead is anyone's guess. None of my notions are very pleasant at this point.
Bottom line, the major world wars in recent history, have involved oil, and needed gold to finance them -- paper just seems to burn up in battle.
What were Vietnam and Korea about? I have no idea, other than simple aggression for aggression's sake, and it needing a counter. I guess I could see Korea get involved with Iraq, and Pakistan just for the jollies based on their past actions. China and Japan are bigger enigmas needing both oil and gold to extend their economies.
