Milton Friedman's notion that "If you put the federal government in charge of the Sahara Desert, in five years there'd be a shortage of sand," has been borne out for decades in US energy policy. Sitting on top of the world's most prolific supply of oil, coal, and gas, every president since Richard Nixon has promised energy independence. The result: an energy dependence that led to the September 11 attack by Osama bin Laden.
With terrorism financed by oil revenues (Saudi Arabian, for the Sunni variety, and Iranian, for the Shiite variety), fretting terrorists evidently anticipated an oil shortage. Who could blame them? When the oil ran out, they would be left with sand. Disconcerted, therefore, by America's voracious energy appetite, bin Laden complained, "Muslims are starving to death and the United States is stealing their oil." That, and our military presence in the Arabian peninsula, provoked his famous 1998 fatwa, exhorting God-fearing Muslims "to kill the Americans and plunder their money wherever and whenever they find it."
But Muslims were not starving because of US oil theft. We paid a fair market price of untold trillions (plus an annual premium of $30–60 billion in taxes to protect the Persian Gulf, even before 9/11). Hunger — along with poverty, ignorance, disease, violence, and despair, to name a few other maladies common to the region — was the result of Muslim governments put in charge of the oil fields.
In the early 1900s, when oil was first discovered in the Middle East, the Muslim world had been in decline from its former greatness for over 100 years. Defying the principles of free market capitalism, and at least a few laws of probability, Muslim political leaders managing Muslim oil — the greatest single source of naturally conferred, easily accessible wealth in the 20th century — extended the decline for another 100 years.
Who would have thought that decades of brutal, totalitarian police states, run by secular tyrants, would fail to restore the tremendous successes Muslims had achieved in the glory days of AD 600–1500?
The descent of Muslim military power, economic strength, and scientific leadership began, ironically, around the time the American republic was born and Adam Smith published The Wealth of Nations. The subsequent adoption of democracy and capitalism by the US and European nations produced immense prosperity and an ever-widening gap between the West and the Muslim world. Today, by any meaningful measure of achievement, Muslim countries lag dramatically behind the West. During a 2010 interview on Al-Arabiya Television, Saudi scholar, Ahmad bin Baz (the son of the former Saudi grand mufti, Abdul Aziz bin Baz), explained,
We Muslims have found ourselves at the tail end of the world's progress. The Muslims are always on the receiving end, and their only role in life is to receive from others. Western society has become the society of innovations. It is Western society that produces and adapts itself to the changes of life, whereas we Muslims have become passive recipients of all these innovations, and all we do is sit down and ponder whether these innovations are permitted or forbidden by Islam.
Muslim leaders are no doubt perplexed by their abysmal failure to rejuvenate Islamic civilization. Who would have thought that decades of brutal, totalitarian police states, run by secular tyrants, would fail to restore the tremendous successes Muslims had achieved in the glory days of AD 600–1500? Why has the terrorism of Islamists (i.e., religious tyrants from organizations such as al Qaeda, Hezbollah, the Taliban, the Muslim Brotherhood, and the nation of Iran) been so slow to advance the Muslim cause? What other strategy might invigorate Muslim innovation, should corruption, cronyism, intolerance, bigotry, homophobia, and misogyny fail?
Give up? Here's a clue: it involves neither democracy nor capitalism. Instead, some Islamist intellectuals have decided that the future of Islam lies in a global Caliphate. They even have annual conferences for indulging in the fantasy. A promotional video for "Caliphate Conference 2012" proclaimed that "the Islamic Caliphate is the only social and political system that has the right solutions to the political, social and economic problems of humanity" and asserted that "the relentless decline of Capitalism has begun. The time has come to fight against poverty. Time to obliterate the injustices. Time for the correct system."
While the precise architecture of the "correct system" is a little sketchy, many of its core concepts — common bonding tenets, mandatory for all self-respecting Islamist intellectuals — are well known. These include (a) totalitarianism, masquerading as religion, (b) absolute rule by Sharia law, the legal codification of the Quran, (c) hatred of Jews, (d) blame to Jews (for caliphate failures), and, of course, (e) death to Israel.
When (or if) the Caliphate begins its transition from a pan-Islamic state to a global empire, the failures produced by the spreading dystopia and cultural havoc will be too numerous and varied to indict Jews alone. Thus, Islamists can be expected to add Christians and other infidels to (d) above.
As a surprise to Israel (not to mention the residents of cities such as Mecca, Damascus, and Cairo), Jerusalem will be the capital of the Caliphate. And as a surprise to capitalism (not to mention the billions of people it has lifted from poverty, more people than any other economic system in the history of mankind), it will be blamed for the world's poverty. Add “Capitalism” to (c) and (d).
A Sunni (al Qaeda) version of the Caliphate is scheduled to be victorious by 2020, right after four years of the "final battles against nonbelievers." However, given the pace at which Iran is developing its nuclear weapons, a Shiite version may be established sooner — unless, of course, al Qaeda steals its nuclear capability from a crumbling and sympathetic Pakistan. Picking a winner is troublesome, as is the idea of a Shiite theocracy having a nuclear bomb among its weapons and a “Death to America Day” among its holidays. Foreign policy experts tell us that Iran seeks its nuclear capability to gain a seat at the table of power. On the other hand, says former CIA director James Woolsey, al Qaeda simply wants to "blow the table up." It's a safe bet that “America” can be added to (c), (d), and (e).
Osama bin Laden was correct to worry about the conservation of oil in a desert region.
America's hedonistic culture mocks the "purity" of Mohammed-era ideals. The conspicuous progress of American capitalism undermines Islamist efforts to reconcile Islam with modernity. To the more eager Caliphate builders, the salve for this incessant irritation might be an EMP attack. A small (1 KT) nuclear weapon or two, detonated at an altitude of as low as 40 km, would destroy our infrastructure (power, communications, transportation, etc.) and, as a bonus, instantaneously fry our blasphemy-spewing smartphones, TVs, radios, and other electronic devices. According to the 2008 “Report of the Commission to Assess the Threat to the United States from Electromagnetic Pulse (EMP) Attack,” its effect would be “something you might imagine life to be like around the late 1800s" — not the 7th century, but a start.
If the Islamists prevail, their caliphate will be the first since the previous Islamic Caliphate was dissolved by Kemal Atatürk in 1924, following the defeat of the Ottoman Empire in World War I. Islamists are nothing if not ambitious, and patient.
That patience is about to be tested. Thanks to capitalism, America is now in the early stages of an oil and gas boom, despite all efforts by our federal energy intellectuals to stifle fossil fuel production. As Gary Jason pointed out in A Totally Fracked Planet, "We will reach energy independence in the not too distant future, thanks not to any corrupt crony green energy industry (solar, wind, ethanol, or biodiesel) but to the vast resources of shale oil and gas made available by advanced fracking technology." Privately owned US companies, employing innovative drilling techniques and private capital, on mostly private land, have made the US the fastest growing oil and natural gas producer in the world. The US is expected to be independent of all foreign oil, except for oil imported from Canada, by 2018.
During the last ten years, capitalism has been turning our long dependence on Middle East oil into little more than a bad memory of the 40 years of feckless policies concocted by our federal energy stewards. And it will turn the dream of Islamists into a nightmare. Try running a totalitarian state on oil revenues, when Brent crude drops from today's price of $110 per barrel to $70 by the end of the decade. What will Caliphate Conference 2020 have to say about world domination when dwindling Saudi Arabian and Iranian terrorism contributions squeeze prospective caliphate budgets to nothing?
Osama bin Laden was correct to worry about the conservation of oil in a desert region. He may have pondered over the use of sand when the oil beneath it ran out. Perhaps he recognized that excessive reliance on oil was the real source of the Middle East plight — that all the while, Muslims were more dependent on their oil than Americans. If Muslim leaders meted out freedom and opportunity, instead of crumbs from the table of oil revenue, economic diversity would result. Industries such as manufacturing, banking, tourism, and agriculture would expand and thrive. Who knows? As America becomes the new Middle East, the Middle East could become the next Silicon Valley, creating thousands of companies, millions of jobs, billions in tax revenues, and trillions in profits to shareholders— as it did here, in capitalist America. Why not? Unless you are an Islamist, there is no reason to believe that Middle Eastern Muslims are not as intelligent, industrious, and ambitious as American Muslims.
Meanwhile, according to an NBC News series on the economic and political ramifications of the American oil and gas bonanza, things will be looking up in America. Lower energy costs are making American businesses more profitable and competitive. New and better jobs are being created. With lower product prices and rising incomes, our standard of living will increase. And we will buy unprecedented quantities of any blasphemy-spewing, Islamist-mocking semiconductor devices Silicon Valley can invent. Semiconductors, by the way, are made from silicon, which is, in turn, fabricated from silicon dioxide — aka, sand.