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Tuesday, June 17, 2008

 

POLICY PEEK
By Ernesto F. Herrera
Will an Obama victory
bring down gas prices?

 
Democratic presidential candidate Sen. Barack Obama has promised to begin an immediate, gradual withdrawal of US combat troops from Iraq if he is elected president. And if you believe Ismael Hussein-Zadeh, a professor of economics at Drake University in Des Moines, Iowa, this very act would help stop the crippling increases in energy and food prices.

The professor does not endorse Sen. Obama but he does blame the US war on Iraq and Afghanistan for driving the prices of crude oil in his article titled, “Worried About the Price of Gas? End US Wars.”

A lot of reasons have been said to explain why oil prices continue to increase. People have blamed Opec. The US government urged it recently to boost production or else it would lift federal restrictions against opening up its oil and gas reserves on federal lands. There’s the idea of peak oil—that we reached that point of maximum global petroleum production after which can only follow terminal decline. There are the pipeline attacks in Nigeria. There’s the increasing demand for oil by India and China, whose economies have been growing rapidly.

Hussein-Zadeh says these are explanations that “deflect attention away from war as the main culprit for the skyrocketing energy prices—tend to blame secondary or marginally relevant factors: Opec, China and India for their increased demand for energy, or supply-demand imbalances in global markets.”

“Whatever the contributory role of these factors, the fact remains that the current oil price hikes started with the beginning of the Bush administration’s wars against Iraq and Afghanistan. Furthermore, a closer examination of these factors reveals that their roles in the current price inflation of oil have been negligible,” Hussein Zadeh said.

“Oil prices have gone from the mid $20 range in the fall of 2002 to $127 yesterday (it’s now at $135 plus per barrel)—a rise of $100/barrel in just over five years,” he said.

Hussein-Zadeh attributes those increases mainly to the US wars in Iraq and Afghanistan, and to the threats of war against Iran. “Soon after the invasions of Afghanistan and Iraq the price of oil began to escalate in tandem with the escalation of war and political turbulence in the Middle East . . . Anytime there is a renewed US military threat against Iran, fuel prices move up several notches.”

Hussein Zadeh also blames the US military campaign in Iraq and Afghanistan for the fall of the dollar since, he notes, the war has been costing the US government $200 billion a year, all in borrowed funds.

There is no other choice as far as Hussein-Zadeh is concerned. “The political-implications of this discussion are clear: to bring down the prices of fuel and food requires bringing home the troops. By lowering the energy costs of production and transportation this will help save our own and many other economies from the plagues of inflation and stagnation. It will bring relief to hundreds of millions worldwide who are burdened by crippling energy bills and the crushing costs of feeding their families.”

If Hussein-Zadeh is correct, if Obama wins the US presidency, and if he would be true to his word, we might see a better chance for cheaper oil. But those are big ‘ifs’, all of them.

Corrupt cops again

I’ve written about this in previous columns but I will not tire of it until something is satisfactorily done. Mayor Alfredo Lim of Manila recently asked the Philippine National Police to speed up the transfer to Mindanao of these notoriously corrupt cops who were recently charged with extortion, robbery, grave threats and physical injuries by a hotel chef who was a victim of their “hulidap” operation.

The corrupt cops—Senior Insp. Rolando Mendoza, Inspector Nelson Lagasca, SPO1 Nestor David, PO3 Wilson Gavino and PO2 Roderick Lopena—were recently suspended for 90 days without pay over the incident, in which they allegedly tried to extort money from Christian Kalaw, a chef at the Mandarin Hotel, who happened to be in the Vito Cruz/Pablo Ocampo area at the time this notorious mobile patrol unit was looking for victims. What happened to Kalaw is all over the Internet, and I recounted it in a previous column.

In short, Kalaw claimed the corrupt cops arrested him and tried to extort money from him, taking him to a nearby ATM. They tried to frame him for shabu possession. He refused to give them money and instead insisted on a drug test to clear his name. They took him to the parking lot of the Ospital ng Maynila, beat him up, forced him to swallow shabu, then demanded P200,000 for his release.

Mayor Lim wants them transferred immediately to Mindanao. But like I said, Mindanao deserves upright and efficient policemen just like Manila does. These corrupt cops don’t deserve to stay in their uniforms, not in Manila, not in Mindanao. Indeed, they deserve to be behind bars, to make citizens feel much safer.

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