Did you see that Russia has planted a rust-proof titanium flag on the seabed of the North Pole, about 4,200 metres below the surface of the water? Talk about a new cold war.
The Russians are laying claim to the vast mineral, oil, and gas reserves of the North Pole. Their effort to conquer and claim the Arctic did not impress the normally mild-mannered Canadians. “This isn't the 15th century. You can't go around the world and plant flags and say 'we're claiming this territory,’” said Canadian Foreign Minister Peter MacKay.
Maybe it is the 15th century, though. The global competition for scarce resources and tangible assets has reached a new phase. The popping of the US mortgage-lending bubble reminds people that metals and oil are more valuable than mortgages and CDOs. It wouldn’t surprise us at all to see more aggressive national claims made on off-shore oil and gas and minerals. This is bullish for prices, although bearish for geopolitical peace and harmony.
Dan Denning
The Daily Reckoning Australia
Do you think Russia should be able to claim the resources of the North Pole? Leave a message below.
P.S. to get The Daily Reckoning direct to your inbox sign up to our free e-mail newsletter or if you prefer to use RSS, subscribe to the Daily Reckoning RSS feed.
Related Articles:
- None Found
About the Author
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). He began his financial publishing career in 1997 and has covered financial markets form Baltimore, Paris, London and, beginning in 2005 Melbourne. He’s the editor of The Daily Reckoning Australia and the Publisher of Port Phillip Publishing.
Comment by P Coggan on 6 August 2007:
If it's bullish for prices (oil prices), how come WPL, OSH, and every other share price connected with oil is headed south?
Comment by Rice Farmer on 6 August 2007:
No, Russia should not be allowed to do so. But the US has laid claim to Iraq's oil. Nothing ever changes, and history repeats itself. The big players will grab whatever they can.
Comment by Jono on 7 August 2007:
If I had to choose between oil supplies in a violent, sectarian driven and heavily populated country in one of the worlds most volatile regions, which would require a massive ground invasion and create years of hostility and resentment abroad, or simply tapping into oil supplies at the bottom of an ocean, I know where I'd pick.
Comment by Vakhtang on 10 October 2007:
All new things are well forgotten ones
What is common in communism and capitalism?
What is common in dictatorship and democracy?
What is common in slavery and freedom?
People: same type, same behavior, same ambitions, same end-result – poor gets poorer and rich gets richer