Jim Cramer Blog

The world oil market is in crisis. The recent increased demand by companies such as China has really created a strain on the market. But, this strain has not hit the current market price of oil. It has put a strain on our foreign policy. Many of our decisions are mainly based on strategic advantages that will give us access to more oil. They are decisions that may continue to create turmoil in the Middle East. Think about it. If the Middle East ever gained any kind of stability, they would get together and create one Islamic state. This Islamic state would be a very developed economy (because of the oil) which would have more leverage with the West than anyone else in the world. If the West ever tried to get something that this Islamic state didn't want, all this new state would have to do would be to place an embargo on all oil leaving the region. If this would happen, all hell would break loose in the oil markets and 95% of the people on earth could not afford to drive or heat their homes. It would also kill the automotive and airline industries. Our economy would plummet. Is that why the US wages war with a developed nation with Iraq? Or, is that why the EU allows unflattering cartoon depictions of the prophet Mohammed to be published in large newpapers? Or, is that why the UN is addemately trying to block the nuclear program of Iran? If they would develop this technology, all that would happen is it would help the economy. It doesn't seem like it would be beneficial for Iran to wipe out Israel because they know we would thwart off any aggression towards Israel and not allow it to happen.