Geopolitical Power through Commodities
The impact of the Russia-Ukraine war, or more importantly, the varied international response to it, has been changing the global balance of power. The supply of energy and food became jeopardized globally, and this danger may not only persist for years to come, but escalate to the point where we do have a series of global crises. Short-sighted domestic policies only serve to further exacerbate the issue.
The impact of the Russia-Ukraine war, or more importantly, the varied international response to it, has been changing the global balance of power. The global definition of "have" and "have not" is beginning to change. A "have" country would be one that had a highly educated society and workforce, had upscale industries and a sophisticated financial system, and incorporated the use of advanced technology. Today such a definition is nothing without also referencing access to sufficient natural resources and raw materials.
The Russia-Ukraine war could have resulted in a peaceful settlement within months of its commencement. Peace negotiations were already underway and had the potential for success, but eventually the priority shifted. The European Union (EU) led by the U.S. and U.K., ultimately decided that Russia should be punished and its economy be effectively destroyed, in order to change its behavior. This goal has not worked out as expected. The supply of energy and food became jeopardized globally, and this danger may not only persist for years to come, but escalate to the point where we do have a series of global crises.
Ironically however, strong climate change initiatives are still underway, directed at reducing the use of traditional energy sources but also targeting agriculture. These actions will only make the supply of various essential commodities worse. There are currently no viable energy replacements in sufficient quantity to substitute for fossil fuels, yet the mentality is predominantly, "let us get rid of fossil fuels first, and we will figure the rest out later" as though some unforeseen technological advances will solve the problem in a matter of months. Solar panels for example, will not produce sufficient energy in the northern hemisphere, where strong sunshine is only available during the summer months.
In the latter half of the 20th century, we would look with amazement if not ridicule, at the Chinese whose primary form of transportation in cities such as Beijing being the bicycle, while we in the western hemisphere had gas powered vehicles. Today, China has gas powered vehicles while many western nations may one day be pushed to bicycles, as gas-powered vehicles are gradually being banned through legislation, we will no longer access to traditional energy sources, and electric vehicles will become unreliable as our electrical grid is overwhelmed and produces blackouts. Our food supplies will also be limited as farmers will no longer have access to diesel to run farm equipment, if not already put out of business due to legislation attacking various forms of gas emissions.
Many have forgotten the value of commodities and these are now becoming more expensive, as the EU in particular is beginning to see. Food and sources of energy are important. No country has an endless supply of money to continue buying from others when not produced at home. Countries that supply commodities under today's environment will prosper tremendously. These commodity producing nations will be able to exercise greater political power on the world stage and more substantially direct the course of events.
Check out our video: "The Western World's Disconnect from Reality". You will find the link in the description below.