WASHINGTON — Sky-high oil prices are keeping Iran’s government flush with revenue. But they are also contributing to Iran’s soaring inflation, President Mahmoud Ahmadinejad’s worst economic woe. Pain at the pump for consumers of oil-importing countries usually translates into political gain for authoritarian leaders in oil-rich countries who use oil rents to buy political support. As Thomas Friedman famously put it, “the price of oil and the pace of freedom always move in opposite directions.” “Iran is no exception,” said Farideh Farhi, a public policy scholar at the Woodrow Wilson International Center for Scholars in Washington. “But high oil prices [...]
HISTORICAL NOTE — Many of the 200,000 or so Germans who thronged the Tiergarten in Berlin to listen to Barack Obama may see him as another John F. Kennedy, but Obama didn’t yield to the same temptation of throwing a German phrase into his speech — and getting it slightly wrong. In 1963, when Kennedy spoke at the Berlin Wall, Berliners roared their approval when the president said he identified with them, even if his historic phrase “Ich bin ein Berliner” translates as “I am a doughnut.” What Kennedy meant to say was “Ich bin einer Berliner.” Twenty-four years later [...]
“If China is winning, the United States must be losing.” That is precisely the principle that many Americans see at work not only in the world, but also in the Middle East. China’s surging manufacturing capacity has contributed to the steep decline in manufacturing jobs in the United States. U.S. businessmen worry about the consequences of Chinese firms taking over U.S. firms such as Unocal and 3Com and scuttle the deals. U.S. bankers agonize over China’s massive current accounts surpluses and its huge dollar holdings. Many perceive China to be a military threat too, expanding its reach in the Pacific [...]
