Date:  03-14-12
Host:  George Noory
Guests:  James R. Norman
Journalist  James R. Norman argued that the U.S. and its allies use the price of  oil as an economic weapon. The oil economic war against the Soviet Union  worked so well in the 1980s, that this strategy is now being employed  against "our other big geopolitical enemy," China, which currently  imports more oil than the US, and is much less able to pay for it, he  outlined. The thinking in Washington is, it's going to slow things down  for China, and could put a crack in their political system, he  continued. Other aspects of the economic war the US is waging with China  are on the front page of the paper almost every day-- with fights over  trade actions, interest rates, and currency levels, he noted.
The  whole Chinese business model is based on predatory trade practices, and  that's why the world is ganging up on them, Norman said, adding that  China is facing large amounts of unemployment and social unrest, and  their banks are sitting on huge assets of non-performing loans. Norman  estimated that the actual cost of oil is between $10- $20 a barrel, but  when US citizens shell out $4 a gallon at the pump, it's collateral  damage or the price we pay to engage in an economic rather than physical  war with China.
Companies like Goldman Sachs, Merrill Lynch, and  Morgan Stanley are the economic warfare equivalent of a carrier battle  group, because they are able to project power-- that's why financial  restrictions were lessened for them, he explained. Morgan also touched  on geopolitical/economic situations in such places as Russia, Europe,  Iran, Venezuela, and Syria.