All About a Prince named Erik

ALL ABOUT a Prince named Erik, 1. Who is Erik Prince? Mr Prince is a businessman and former U.S. Navy SEAL officer best known for founding the government services and security company Blackwater USA, now known as Academi. He is the brother of you should know who but let's focus on Mr Prince. Loads of political trajectories are pointed at Mr Prince amidst his proposal "to privatize the war." This surfaced following President Trump's increasing frustration that his national security team's strategy in Afghanistan isn't working. 

ALL ABOUT a Prince named Erik, 2. Let's define "privatize," verb, transfer (a business, industry, or service) from public to private ownership and control. That'd mean the government ceases to be the owner of the entity or business. The process in which a publicly-traded company is taken over by a few people is also called privatization. Meantime, if the US government spends for war or whatever we call military presence somewhere, that'd fall under Defense budget, which is essentially taxpayers money. Question: If the government's military spending is privatized, where'd we course what'd could be saved from the huge Defense budget? (I will discuss that later.) 

ALL ABOUT a Prince named Erik, 3. As they entered White House, Donald Trump proposed $639.1 billion Defense budget; Obama, $523.9 billion. Trump's tenure isn't over yet so we don't what'd be his term's total spending. To give you an idea, in FY 2015, Pentagon and related spending totaled $598 billion, about 54 percent of that fiscal year's discretionary budget. In 2017, President Obama proposed an increase of $2.2 billion over the base budget. So on and so forth. Lots of money, right? 
          I can probably say maybe some money went to the Federal Refugee Resettlement Program, which admitted a record 110,000 refugees in 2016. But FRSP is under the Department of Health. To give you an idea, hosting refugees cost U.S. taxpayers $8.8 billion in five years time, like $70,000+ a year per person. Think about your total annual salary, uh huh. But then government budget juggling is a fact so maybe some of those Defense billions went to refugee resettlement. 

ALL ABOUT a Prince named Erik, 4. Back to Mr Prince. His name and Blackwater USA first came up, or Erik kinda noise was comparatively louder, when Trump visited Saudi Arabia on the onset of Donald's presidency. Saudi Arabia, the OPEC stalwart and #1 producer of oil (before Russia rocks it) and most importantly, #1 exporter to the US. Think Aramco, based in Dhahran, which digs up the world's second-largest proven crude oil reserves. Now called Saudi Aramco, it was formerly Arabian-American Oil Company. 

         You may Google "oil in Middle East" and it'd take you to Getty time or far back to 1930s, and you'll read names like Karl Twitchell, Stephen Longrigg, and eventually California Arabian Standard Oil Company (CASOC), which leads to Texas Oil Company, CALTEX, and there we go to eventual marketing network in Africa and Asia. My point: US military is imperative out there. More importantly, Saudi Arabia and US' bilateral agreements have always been dovetailed with "arms etc for oil" since way back when. How'd that happen? I could mention first Communist "interference" in the region but that's not my topic, for now. 

ALL ABOUT a Prince named Erik, 5. Now this is the hitch as Trump visited the kingdom. Saudi Arabia has decided to diversify under Crown Prince Mohammad bin Salman. Such a trade diversification move is not a Saudi initiative. Rich Qatar has been doing that recently. And it's working. Damn, the Prince has been buying art recently. Not bad, right? Compared with buying arms. 
          Following the reminder of Arab Spring (started 2010), SA has been planning to lessen oil drilling and do other fun and profitable things since they already got the moolah anyways. Like, follow the Chinese example. Remember, Beijing bankers also advised Russian natural gas/oil magnates to diversify upon handing them loan/s. Anyhow, SA has been hinting of low oil production for years. Yes, Yemen and Syria are trouble areas but hey maybe foreign policy's war funding should be focused instead to other things and let private business dudes deal--while Washington blocks a possibility of 1978 oil crisis. We still gotta deal arms since that's what was written. 

ALL ABOUT a Prince named Erik, 6. Question: Are private arms dealers new in re government funding of war? No. For starters, let me just point you to these enterprising dudes, Efraim Diveroli and David Packouz, who received a US Army contract to supply munitions for the Afghan National Army worth approximately $300 million more than ten years ago. What makes Erik Prince different from Diveroli and Packouz? Not much. Only, Prince could be official, but those two guys, you may call them, dubious. 
          But then should I point you to history? Arms dealership by major businesses: Dassault Aviation, Sukhoi, Mikoyan, EADS, Leonardo, Thales Group, Lockheed Martin, Northrop Grumman to name a few. What makes Blackwater USA or Academi different from those? You see, once a bomb is dropped or a militia is funded, people out there who get hit aren't talking about who the Pepsi or Coke dropped them. They will point to America or Russia or China or any world power. A government's foreign policy. So why don't we focus on ending the war and instead deal lo meins or organic hummus? By pointing our guns (pun, okay?) at personalities and people, we are negating issues and policies. You may strike Trump or Prince out, but the system stays. As The Who shouts, "Meet the new boss, same as the old boss... We don't get fooled again!" 

ALL ABOUT a Prince named Erik, 7. Lastly, back to my previous question. If war-shenanigans are privatized, what do we do with whatever is saved from the Defense money? Easy. Fund FEMA or make it a department than just under Homeland Security. Improve veterans health benefits. Etc etcetera. But I am sure or almost sure that lotsa money will be directed towards two major trade routes: South China Sea and Strait of Hormuz. Washington has somehow silenced Pyongyang and Seoul is now chillin' with bros and sis across the 38th parallel border. But Iran is still you know being a butt. Iran may annex Saudi Arabia in re stewardship of OPEC. That is a concern. But maybe some money will be pitch as major leverage when Washington and Manila sit down for new bilateral summit in re military bases out there. Makes sense. Meantime, I'd rather chuck the Erik Prince talk and just instead talk about the real Prince. You know, "When Doves Cry"? 

THE WORLD THESE DAYS. Geopolitics by way of the US and China, and other role players. Part 2: Strait of Hormuz.

THE WORLD THESE DAYS. South China Sea on that side, and then Strait of Hormuz on this side. Hormuz. a strait between the Persian Gulf and the Gulf of Oman, is where petroleum/oil from mostly OPEC countries (especially Saudi Arabia) passes to the West. It provides the only sea passage from the Persian Gulf to the open ocean and is one of the world's most strategically important choke points. On the north coast lies Iran, and on the south coast the United Arab Emirates and Musandam, an exclave of Oman. About 20 percent of the world's petroleum (about 35 percent of the petroleum traded by sea) passes through the strait, making it a highly important strategic location for international trade. The narrow Strait is considered one of the most, if not the most strategic strait of water on the planet. Through its waters, in giant ocean-going tankers, passes much of the oil from Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the UAR. All those countries post huge headache to Washington. Except Iran. 

         What are other problems? Muslim extremism, especially one emanating from Yemen. Besides that, Saudi Arabia has been threatening slow production/export. Arms for oil has always been Washington's deal with the Kingdom, and although Obama upped Defense budget, it didn't really help. Trump upped Defense budget more but Donald wants to spread it out to the East as well. Why shake it? Syria is still unresolved and we need money for refugees? Meantime, we gotta earn money, too, right? So why deal with OPEC especially that Iran is maneuvering to take leadership from SA? Non-Muslim OPEC nation like Venezuela (3rd exporter to US) is embroiled in shit right now.
          But the real problem these days? Iran. Remember that 2011–12 dispute? The dispute arose on 27 December 2011, when Iranian Vice President Mohammad-Reza Rahimi threatened to close the Strait of Hormuz. You may dig in, google google, but you may just look into Washington support for Ba'athist Iraq during the Iran–Iraq War in 2003. The mutual animosity hasn't subsided, sadly. 

         Meantime, how important is a closure of the Strait of Hormuz to the US and its allies (hence gargantuan interests and investments there)? For one, disputes there would inflate oil prices, not only in the west, but in Asian countries such as Japan, India and South Korea. All three countries collectively account for 42 percent of Iranian oil exports (Japan 17 percent, South Korea 9 percent, and India 16 percent). But that's just Iran. What if Saudi Arabia relegates OPEC control to power in Tehran? OPEC crude oil pricing is still controlled by the US but with Iran rising, expect modifications of course. 

SO while Saudi Arabia eases up oil, and an impending "new" OPEC, led by Iran, isn't so friendly with Washington, as Venezuela sinks in internal strife, who to turn to? Canada. Canada has overtaken Saudi Arabia as #1 exporter of oil to the US, at Canada 4.02 million barrels a day (or 40 percent of US' total oil imports). And we don't have to ship via Strait of Hormuz, you just have to pipeline them. Mexico also sends oil to the US, some 7 percent, across the border but that wouldn't last. Nafta, right? Now are Trump and Justin Trudeau cool with each other? You tell me. What about the new Mexican president? Andrés Manuel López Obrador who won half of the nation's votes in a multiparty election? 

         This, while America needs the oversupply. Last year, the United States imported approximately 10.1 million barrels per day (MMb/d) of petroleum from about 84 countries. And it seems it isn't enough. That despite America's huge deposit and production (#3 in the world). Why do we need oil? We consume 20+ percent of global supply, plus if we need to jack up the factories and Trump trillion-dollar infra blueprint, keep the oil coming. What is the missing link? Russia, currently #1 producer of oil. BTW Russia entered WTO in 2012, so it can freely trade with the US and allies. 
         Some say the US is now #1 in oil production. It doesn't really matter. We still need to import till things somehow even up and the dollar regains strength as how it was before China emerged. But then the Liberal mindset will always fight homeland oil drilling since a cool environment is their prime political mantra these days. So where do we go? We will still drive the sedan, hybrid or SUV to score condoms on the next bend and tweet and post 24/7 and binge-watch hours and hours as Vegas Strip and Times Square frolics with electric magic nonstop forever. Don't forget we guzzle up oil the most than any other nation on earth, including the larger ones.  

         Just chill and enjoy. Price of gasoline is still around the US average of $2.40/gallon and unemployment is manageable at 4 percent. It helps to calm down and enjoy our privileged blessings while Raqqa burns in war and Myanmar wades in flood. We can help more of humanity if we take it easy and sustain peace than foment hatred just because we don't like one president's hairdo. Dig.