For the normally anodyne OilPrice to run an article, Obama Fiddles While Iraq Burns, that is openly frustrated with US conduct suggests that there is considerable consternation in the oil industry about the lack of a coherent policy in Iraq. One school of thought has been that the US wanted a breakup, but history like the dissolution of Yugoslavia shows that they are ugly, bloody affairs that hurt the population and infrastructure. Both are bad for business, such as drilling for and refining oil, which was apparent reason we occupied Iraq in the first place.
I’ve discussed with Lambert the difficult of coming up with a coherent rationale for the US stance towards Iraq. The only one I can come up with is that the neocons have convinced themselves that chaos in Iraq creates more options for the US, and as the world’s only superpower, we’ll find a way to take advantage of the situation. Readers of this blog will recognize this is troublingly similar to the way banks generate risk, because it’s profitable for them, even if they break the system.