We Can Bankrupt the Global Jihad

Saturday

After the "Arab Spring," Saudi Arabia gave its citizens a raise. Saudis citizens don't pay income taxes. Most of them don't even work. The Saudi government pays them, and to avoid the fate of the leaders in Egypt, Libya and elsewhere, the Saudis increased their citizens' pay and pensions. They committed future funds to these payoffs.

This has presented the counterjihad movement an opportunity to strike a decisive blow into the heart of the global jihad.

Jihadist projects are funded largely through Saudi Arabia and Iran, two OPEC nations. The Taliban is a Saudi oil-money project, for example. So is the Muslim Brotherhood and the OIC. Hezbollah is an Iranian oil-money project.

OPEC is a cartel formed of primarily Islamic countries. OPEC was founded for the purpose of raising world oil prices. Jihadist activities around the world have been on the rise because jihadist funding has been on the rise. The source of that funding is oil profits, which have been on the rise.

What keeps the whole thing functioning is oil's monopoly over the most important commodity on earth — transportation fuel.

In the 1980's, because the rising cost of oil, many new programs were started to create a freer fuel market. Brazil launched its ambitious ethanol program, many new ethanol distilleries were built in America, Roberta Nichols created a massive methanol experiment in California, etc. But in the mid-80's, OPEC flooded the world market with oil in order to drop world oil prices, which made all of these potentially-competitive fuels no longer competitive on price, which crashed Brazil's program, put half the U.S. ethanol facilities into bankruptcy, and prompted California to abandon its methanol experiment.

It was a classic monopolist move. It's the oldest trick in the monopolist's book: Drop your price to send the competition into bankruptcy.

Once their competitors were sufficiently crippled, OPEC started raising the world oil price again.

But competing fuels have recently begun to reappear. Brazil permanently changed to flex fuel vehicles (rather than ethanol-only vehicles) for example, which has protected them from OPEC's manipulations (when oil prices drop, drivers buy gasoline; when oil prices rise, drivers buy ethanol). Brazil's economy is booming.

In the United States there is a growing clamor to use methanol as a fuel, ideally in flex fuel vehicles. Methanol can be made inexpensively from America's abundant natural gas, and can be sold for half the cost of gasoline without any subsidies. If it was available as a fuel, people would buy methanol because it would save them a lot of money. But right now, it is not available as a fuel in the U.S. One bill now in Congress is trying to change that.

So let's say the bill passes into law and methanol becomes available, and people start using methanol for fuel. Gasoline would have to drop in price to compete, or it wouldn't sell. Everything would be wonderful. But...

Wouldn't OPEC just drop the world price of oil to crush this new competitor?

This is where things have changed in an important way. This is our new opportunity. Saudi Arabia controls what OPEC does. The Saudis are sitting on the easiest oil to produce in the world, and therefore theirs is the cheapest oil to produce. Because of this, they dictate what the rest of the OPEC nations will do. But if methanol becomes a fuel in America, Saudi Arabia (and the global jihad movement) will be between a rock and a hard place — and it could be the end of both OPEC and the third jihad.

If the Saudis decide to lower the world price of oil to make the U.S. lose interest in methanol, they would not make enough money to fulfill their commitments to pay off their subjects, who would probably rise up and throw the monarchy out. But if the Saudis keep the price of oil high, they would lose their income, because who would buy gasoline at $4.00 a gallon when methanol is available for half the price of an equivalent gallon? Not many.

Gal Luft, the co-director of the Institute for the Analysis of Global Security, wrote:

Since the beginning of the Arab Spring, Saudi King Abdullah almost doubled his Kingdom's budget, committing billions in subsidies, pensions and pay raises in an effort to keep his subjects from storming the palaces.

This expensive response effectively raised the price of oil needed for the Saudis to balance their budget from under $70 a barrel before 2011 to at least $110 a barrel by 2015.

When oil is $100 a barrel, gasoline is about $3.50 to $4.00 a gallon. Methanol can sell at about $2.00 an equivalent gallon. Oil would have to be $50 a barrel to compete.

In other words, what happened in the 1980's can no longer happen. Saudi Arabia can no longer afford to drop the price of oil low enough to eliminate the competition. If we introduce vigorous fuel competition now in America, it will be the end of oil's monopoly for good, and funding for the global jihad would evaporate as Saudi Arabia and Iran would be forced to struggle to simply stay afloat.

This is an unprecedented opportunity. And you can help make it happen: If you are an American, join the fuel competition revolution. Go to openfuelstandard.org and sign up for their updates and urge your Representative to co-sponsor the bill. If you are in any other country, let your fellow counterjihadists know about this bill and what it could mean for the world, and let everyone around the world urge Americans to pass this bill. The U.S. is the largest consumer of transportation fuel in the world. If fuel competition happens here, it will spread to other countries. And it will be the death knell of the third jihad.

8 comments:

Anonymous 7:09 AM  

Maybe methanol is a good choice. When we look seriously at alternate energy sourcwes we must be responsible enough to discern those sources that have a track record of failure and unsustainability and avoid them, i.e., "green" examples such as windmills, solar, and the disaster as in Japan of nuclear. It would also be unwise to not look at who will be profiting from the new fuels i.e., Communists and UN globalists who also seek destruction of The West-

Ben 2:53 PM  

I regret to inform you that you overlook one crucial factor: the doctrine of energy equivalence.

For more than a decade, our government has been operating on a doctrine which holds that the cost of a BTU should not vary between alternative fuels. If one fuel is cheaper, the government raises tases on it to bring it up to match the others.

KSA is running short of energy for domestic use, particularly electricity. At the same time, their oil fields are rapidly being depleted.

We can exploit their weakness by increasing domestic exploration and production, not by mythological alternative fuels.

Any solution requires removing the Socialists from Congress and the White House. Until we do that, we can do nothing.

Citizen Warrior 12:18 AM  

Ben, since right now you can buy CNG at $2.11 a gallon equivalent, clearly the government does not raise taxes to match the others.

Methanol is not a mythological alternative fuel. It is being used in over a million cars in China.

http://www.fuelfreedom.org/blog/the-u-s-and-china-on-methanol-two-roads-converge/

Until we remove socialists from Congress and the White House we can do nothing? That kind of pessimism and defeatism is not helpful to our purpose. Much can be done immediately.

Anonymous 4:46 AM  

CW, I not only agree with your most of your posts, i also appreciate your attitude of doing something positive rather than just wringing one's hands about the jihad threat.

Stay that way :)

Anonymous 9:12 AM  

CW wrote:
Until we remove socialists from Congress and the White House we can do nothing? That kind of pessimism and defeatism is not helpful to our purpose. Much can be done immediately.

Annon wrote:
CW not facing the truth means we can't get to the solution.
The UN was started by communists, is currently implementing a global plan for global conquest and spiritual unity. This includes embracing Islamic civilization and merging all cultures into a Babylonian utopia. Until we rid ourselves from the UN globalist/21 century socialists, we will not stop Islam, I agree with Ben.

However, the education must continue and CW does the best job on that.

We can exit the UN state by state, and exit Agenda 21 (21st century socialism, UNESCO secular humanism, Common Core and Islam) with one paragraph.

https://www.dropbox.com/s/memxphicligbxku/state%20withdrawl%20from%20the%20un.pdf

Why do we not do this? We are overrun with Alger Hiss communists in our government.

Walter Sieruk 8:23 AM  

If Islam is repsented as a tree then tree then the fruit of this tree are the many different Islamic terror groups. Such as al Qaeda, al Shababa, Anser al Islam, Hamas ,Hezbollah, PIJ, etc. many members of these groups put into practice the murderous violence of Islam’s militant jihadism, Sura 9:112. 47:4.. In the light of this the teachings of Jesus very much apply. For Jesus taught “Ye shall know them by their fruits. Do men gather grapes of thorns or figs of thistles ? Even so every good tree bringth forth good fruit; but a corrupt tree bringth forth evil fruit. A good tree bring forth good fruit.” After saying this Jesus told them what He told them when He said “By their fruits ye shall know them.” Matthew 7:16,17,18,20. [KJV] In conclusion, Islam is a corrupt tree and also a false religion.

Walter Sieruk 12:48 PM  

The murderous violence of the militant jihadism of Islam is based on the Quran.For example as in Sura 9:112. 47:4. An important question: is the Quran the Word of God or is it a fabrication of a Man. Thus, is the Quran the truth or a fiction and a hoax? The jihadists use many verses from the Quran as the Main source of justification for their violence, mayhem and murders. There, the question is clearly given on pages 145 through 157 in THE ISLAMIC INVASION by Robert Morey in which he wrote a section on the Quran with its self-contradictions. Just two of the many he cited are the following “The Quran differs on whether a day is a thousand years or fifty thousand years in God’s sight’ and “Who was first to believe? Abraham or Moses [Sura 6:14 versus 7:143]? The above is inconsistent and illogical. Further, Morey wrote about “The fact that Judaism and Christianity broke up into different sects was used in the Quran to prove that they are not of God [Suras 30:20-32. 42:13, 14]. Yet Islam has broken up into many warring sects and therefore cannot be true if the Quran is right.” Moreover, Morey in his book shows many more contradictions and absurdities in the Quran, there are and how Muhammad incorporated extra Biblical and Jewish folklore along with pre-Islamic Arabian myth and parts of Zoroastrian and Hindu stories into the Quran. Furthermore, the Muslims claim that “the Quran is the direct, literal word of God unmodified in any way by the Prophet who uttered them at the bidding of God.” Nevertheless, in the book UNVEILING ISLAM by Ergun Mehmet and Eethi Caner has shown that the Quran was modified in the following account on pages 45. “Muhammad felt the need to improve on the words of Allah, since he changed Allah’s wisdom for his own on several occasions. A hadith tells of the nonchalant emendations of Muhammad:’ On a number of occasions he [a scribe] had, with the Prophet’s consent changed the closing words of verses. For example, when the prophet had said ‘God is mighty and wise ‘ Adbollah b. Abi Sarh suggested writing down ‘Knowing and wise’ and the Prophet answered that there was no objection. Having observed a succession of changes of this type, Adbollah renounced Islam on the grounds that revelations, if from God could not be changed at the prompting of a scribe such as himself. After his apostasy he went to Mecca and joined the Qorayshites.’ Other writers reveal that later Muhammad and his people did go war with the Qorayshites and he personally killed Abdollah. Obviously Abdollah knew too much and Muhammad wanted Abdollah’s knowledge to die with him.” In conclusion, the Quran is not only a fiction, it’s also a hoax.

Anonymous 7:18 PM  

The time is also ripe for the building of Thorium Fuelled Reactors.
The principles have been known since the late 1940's, but Uranium as been the fuel of choice because of the nuclear weapons programme. Thorium does not produce by-products for the nuclear weapons programme.
India is developing Thorium Reactors because it cannot buy Uranium Yellowcake easily for its own reactors.
Uranium is expected to run out in 50-60 years, whilst Thorium could replace Uranium and there is enough of it to last 250 years+

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