Daily Report

Low oil price: calm before the storm?

We've long maintained that global oil prices are not determined by scarcity or even the laws of supply and demand so much as by politics—the price rises or falls in response to war or comparative stability in the Middle East. Oil fields don't have to actually go up in flames—the mere fear that this will happen is sufficient to drive up the price: it is about perception. We've also noted that the global petro-oligarchs are hoping to reap a windfall from the multiple global crises, plugging the North American energy boom as a key to security and low prices. But ultimately, high prices are needed to fuel continued expansion of the industry, whether in North America, the Arctic, Persian Gulf or Caspian Basin. So, to an extent, the global price is manipulated—we are alternately told that energy self-sufficiency is reducing reliance on unstable global markets, and that instability threatens our "way of life" so we had better loosen burdensome environmental restraints on new exploitation. At the moment, we are on the first part of the cycle: After an initial price shock when ISIS seized northern Iraq, prices have now stabilized, and we are being told it is thanks to domestic fracking and tar-sands oil. Soon enough (just you wait) they will be surging up again, especially if (as seems all too likely) the Middle East continues to escalate. This much is admitted in a Sept. 15 National Public Radio report, "With Turmoil Roiling Abroad, Why Aren't Oil Prices Bubbling Up?"...

Chile: who's behind the bombing spree?

Fourteen people were injured, four of them seriously, when a homemade bomb exploded at 2 PM on Sept. 8 in a shopping center restaurant at the busy Escuela Miltar subway station in Santiago, the Chilean capital. In response, President Michelle Bachelet, a Socialist Party of Chile (PS) leader who began her second term on March 11, held a special security meeting in the La Moneda palace on Sept. 9; she called for increased vigilance and for modifications to the Antiterrorist Law, a measure passed during the 1973-1990 dictatorship of Gen. Augusto Pinochet. The bombing came shortly before the 41st anniversary of the Sept. 11, 1973 coup in which Pinochet's military overthrew Socialist president Salvador Allende Gossens.

Guatemala: bishop's killer runs prison ring

On Sept. 3 the United Nations-sponsored International Commission Against Impunity in Guatemala (CICIG) announced that a joint operation with Guatemala's Public Ministry and Governance Ministry had captured seven members of a criminal network that took bribes to arrange transfers for prisoners; the ring also supplied prisoners with cell phones, special food, conjugal visits and other benefits. According to the authorities, the network's leaders were Penitentiary System Director Edgar Camargo Liere and a prisoner, Byron Miguel Lima Oliva, who is serving a 20-year term for carrying out the April 26, 1998 murder of Catholic bishop Juan José Gerardi Conedera, a well-known human rights campaigner. A total of 14 people are charged with participating in the bribery ring, but apparently not all had been captured as of Sept. 3. (CICIG, Sept. 3)

Peru: guards union leader brutally beaten

Luis Cárdenas Velásquez, the secretary general of a union representing Peruvian employees of the Spanish security firm Prosegur Compañía de Seguridad, was assaulted near his home early on the morning of Aug. 22 as he was on his way to work. The assailant beat Cárdenas' head with a rock and then fled in a car which had been kept waiting a block away with the motor running. Nothing was stolen. Cárdenas reported the attack to the authorities and received four stitches at a hospital. A month earlier pamphlets were circulated among Prosegur staff accusing Cárdenas of stealing union funds. Management denied responsibility for the pamphlets and for similar anti-union pamphlets that have been reported at Prosegur sites in Colombia. The company has subsidiaries in a total of eight Latin American countries, including Argentina, Brazil, Chile, Mexico, Paraguay and Uruguay.

Haiti: UN mission reduced; opposition grows

United Nations (UN) secretary general Ban Ki-moon plans to continue the United Nations Stabilization Mission in Haiti (MINUSTAH) one more year but wishes to cut it significantly, according to a report that the military and police mission's current head, the Trinidadian diplomat Sandra Honoré, presented to the UN Security Council on Sept. 11. Secretary General Ban recommended extending MINUSTAH for another year when its mandate ends on Oct. 15. However, the military component would be reduced to 2,370 soldiers by June 2015; currently the mission has 5,021 soldiers and 2,601 police agents, along with nearly 2,000 civilian employees and volunteers. Honoré said the Haitian National Police (PNH), which now has 10,963 agents, would be able to take over many of MINUSTAH's functions. She admitted that "[t[he reinforcement of the national police needs to be accompanied by measures for accelerating the reform of the justice system to support the construction of institutions and to improve local governance." (AlterPresse, Haiti, Sept. 12)

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China factor in the fight against ISIS

We've noted that Iran is a de facto member of the Great Power convergence against ISIS, but the Islamic Republic wasn't invited to today's summit in Paris, where leaders of some 30 nations pledged to support Iraq in its fight against the so-called "Islamic State" by "any means necessary, including appropriate military assistance, in line with the needs expressed by the Iraqi authorities, in accordance with international law and without jeopardizing civilian security." However, the two principal US imperial rivals were there: Russia and China. Of course we can take the reference to "civilian security" with a grain of salt, and the final statement made no mention of Syria—the stickiest question in the ISIS dilemma. (AFP via Lebanon Daily Star, Sept. 16) China's interest in the issue was crystalized over the weekend by the arrest in Indonesia of two ethnic Uighurs on suspicion of ties to ISIS. The two were detained in Central Sulawesi province, said to be a "major hotbed of militancy," in a sweep of suspected ISIS recruits. They had allegedly procured false passports in Thailand, and were in possession of literature and other paraphernalia with ISIS insignia. (SCMP, Sept. 15)

China: writer detained for articles critical of official

Chinese writer Huang Zerong, 81, known also by his pen name Tie Liu, was detained by Chinese authorities Sept. 14 for allegedly publishing articles critical of Communist Party propaganda chief Liu Yunshan (Brookings backgrounder). According to the Hong Kong-based South China Morning Post, the 81-year-old writer was criminally detained on charges of 'picking quarrels and provoking trouble.'" Huang spent 23 years in prison after being labeled a "rightist" by the Chinese regime during Mao Zedong's crackdown on liberals. His name was later cleared by the Communist Party in 1980.

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