The USA imposed sanctions on Iran after the Shah was ousted. The result of those sanctions was that Iran's main export which is oil was stopped - at least the USA was not importing Iranian oil. Libya was charged with terrorism and trying build nuclear weapons - sanctions were imposed on it too. But Libya managed to bribe itself out of that mess.
Some years later Iraq and Iran were at war. Iraq needed money to fund its war - it bought the latest weapons the USA was willing to offer. As long as the war lasted- There was more Iraqi oil into the world market. There was oil glut- the price of oil crashed. The oil companies in the USA were the ones which suffered the most, which was unforgivable.
The oil glut was worse than an oil embargo. The oil embargo made the oil companies rich a glut made them poorer. The solution lay in a controlled flow of oil, particularly Iraq. Iraq suffered an oil for food system. It had to supply oil in return for food.
In 1998 both India and Pakistan conducted nuclear tests. The USA quickly imposed sanctions on both countries as a way to punish the two. What was forgotten by the policy makers was that these countries were the major suppliers of food to the world. The sanctions backfired when the stocks of food started dwindling. The USA had two options either sell whatever stock of food it had, for an increasingly higher price - or lift the sanctions against India and Pakistan so that food is supplied and the price of food comes down. The sanctions were lifted, but the damage had been done. Both countries had to recoup their losses - the price of food remained high. Food is a major export - instead of industrial goods and manufactured items. Pakistan exports, wheat, rice, sugar cane, a whole range of vegetables. Milk - dairy consumption is not as high as it is in the rest of the world. So sanctions against India and Pakistan was a terrible idea to start with.
Some years later a major flood hit Pakistan - this made the price of food rise, because major farm land was damaged.
As it was the world was barely able to survive as a result of high food prices - floods resulted in a major food crisis. In Arab countries governments were toppled, some even danger of going in that direction. People can live without oil -but not without food.
However the matter of oil is that oil companies not the countries are reaping obscene profits. The upheaval in Libya is a sign that the world has to choose between its people and the oil companies. In Iraq oil being stolen and being sold at a ridiculously high price.
Some years later Iraq and Iran were at war. Iraq needed money to fund its war - it bought the latest weapons the USA was willing to offer. As long as the war lasted- There was more Iraqi oil into the world market. There was oil glut- the price of oil crashed. The oil companies in the USA were the ones which suffered the most, which was unforgivable.
The oil glut was worse than an oil embargo. The oil embargo made the oil companies rich a glut made them poorer. The solution lay in a controlled flow of oil, particularly Iraq. Iraq suffered an oil for food system. It had to supply oil in return for food.
In 1998 both India and Pakistan conducted nuclear tests. The USA quickly imposed sanctions on both countries as a way to punish the two. What was forgotten by the policy makers was that these countries were the major suppliers of food to the world. The sanctions backfired when the stocks of food started dwindling. The USA had two options either sell whatever stock of food it had, for an increasingly higher price - or lift the sanctions against India and Pakistan so that food is supplied and the price of food comes down. The sanctions were lifted, but the damage had been done. Both countries had to recoup their losses - the price of food remained high. Food is a major export - instead of industrial goods and manufactured items. Pakistan exports, wheat, rice, sugar cane, a whole range of vegetables. Milk - dairy consumption is not as high as it is in the rest of the world. So sanctions against India and Pakistan was a terrible idea to start with.
Some years later a major flood hit Pakistan - this made the price of food rise, because major farm land was damaged.
As it was the world was barely able to survive as a result of high food prices - floods resulted in a major food crisis. In Arab countries governments were toppled, some even danger of going in that direction. People can live without oil -but not without food.
However the matter of oil is that oil companies not the countries are reaping obscene profits. The upheaval in Libya is a sign that the world has to choose between its people and the oil companies. In Iraq oil being stolen and being sold at a ridiculously high price.
Comments
The Intrinsic Value: Food Inflation Problem
Pakistan has other problems within it's borders, that were there long before the U.S. started the war On terror! Maybe if you people started to actually grow your own food instead of bending over five times a day you would be a lot better off !
How about those friendly people the Taliban! How nice they are Huh!
Stand up for yourselves for a change !