Obama initially rejected sending troops to Iraq after ISIS/ISIL went on a tear thru northern Iraq but since then has been taking a series of steps to give the US a bigger and bigger military role in Iraq.
June 14: Obama says no US troops to Iraq. In the latest escalation of the US response on July 3 US Defense Secretary Chuck Hagel said Green Berets are headed for Erbil in the Kurdish zone.
Why? My guess: To protect oil production. Suppose the Sunni Jihadists got into southern Iraq and seriously disrupted oil production. What would happen? Skyrocketing global oil prices and a recession. Almost all US recessions since World War II have been preceded by an oil price shock.
Jihadists can mess up Syria and get less attention from Washington DC because Syria has hardly any oil. But in Iraq the Kurds and the Shia Arabs have oil. The oil must flow!
What I want to know: Will the Shias in the oil region of Saudi Arabia ever rebel? That would cause a deep world recession.
|Share |||By Randall Parker at 2014 July 03 11:31 PM China Economy|