Some fairly crazy things have been happening in the world these last few weeks, so lets get to it. The most urgent of all news stories is Israel potentially fighting a two front war. They're currently engaged in the Gaza Strip and Lebanon. If you're unfamiliar with the story, it all started with militants aligned with Hamas attacking an Israeli outpost, and capturing an Israeli soldier. The militants want to swap the soldier for thousands of Palestinian prisoners.
Then, a few days ago, the terrorist group, Hezbollah, based in Lebanon (in the North), sends fighters across the Israeli border, kills a bunch of soldiers, and takes a few soldiers prisoners. Same demands, they want to swap the soldiers for hundreds of prisoners. Israel starts blockading and bombing Lebanon. Hezbollah responds by firing over a hundred rockets into northern Israel.
A more detailed account can be found at CNN.
World reaction has been mixed. The European Union is against Israel because they say Israel is using disproportionate force against Lebanon, ie bombing their airports and military air bases, and blockading their ports. Canada and the U.S. back Israel because they say Israel has the legitimate right to defend itself since Hezbollah invaded Israel. Interestingly enough, Saudi Arabia is blaming Hezbollah for the whole mess, while most Arab nations are harshly criticizing Israel.
On a sidenote, this Israeli attack against Lebanon might actually help Lebanon. The Lebanese government doesn't have any control in the south where Hezbollah is based. The government is currently too new and fragile to do anything. If Israel takes out a lot of Hezbollah's leaders, infrastructure, etc, this could actually boost the government since Hezbollah will have less sway and influence in the country. President Bush is quick to tell Israel not to do anything that would destabilize the Lebanese government because it's a democratically elected government which is friendly to the West. (Pretty rare in the Middle East).
There's some analysts that believe Iran and Syria are purposely stirring up crap in the Middle East since they back Hezbollah. Iran did threaten to destabilize the region if they were referred to the UN Security Council because of their nuclear program. This could be the Iranian response. In addition, Iran and Syria may be drawn into this regional conflict.
Iran has already issued a statement saying they'll react if Syria is attacked by Israel. If Iran were to join the conflict, the Americans may be dragged into the war as well. An open regional war woud be fairly crazy, but not unheard of.
Which leads us to the next problem in the world. The UN has been trying to get Iran to ditch its nuclear program, and to suspend uranium enrichment. They offered a sweet deal to the Iranians if they were to cooperate, but Iran has not responded to the proposal. The deadline came and past, and the Security Council is running out of patience. For the first time, Russia and China may support sanctions against Iran. More details of this can be found
here.
Things couldn't get much worse right? Wrong. Earlier in the month, North Korea test fired a bunch of medium and long ranged missiles even though they signed a treaty saying they wouldn't. This has Japan really angry because they are threatened by North Korean missiles. Furthermore, North Korea claims they have nuclear weapons, so nukes + missiles = bad. North Korea has said that they're going to test fire even more missiles. So, Japan has submitted a resolution to the UN which condemns North Korea for its reckless actions, and to impose sanctions on the country. The sanctions would forbid nations from selling technologies to North Korea which could be used for missiles or weapons of mass destruction. This would be legally binding which means nations must obey this directive.
Meanwhile, Russia and China are passing around an alternate resolution which condemns North Korea, but doesn't contain sanctions. It basically says, what North Korea did was bad, and we RECOMMEND nations to not sell technologies to North Korea which could be used for missiles or weapons of mass destruction. This means following this rule is purely optional.
It's things like this that make me believe that the UN is a lame duck. They talk strong, but no serious decisive decision is ever issued. Diplomats dance around language in resolutions, and they don't want to offend anyone. It's good to be a regime these days, because no matter what you do, there's no consequence. Quite the opposite, you'll be showered with gifts like economic incentives and such. More about the North Korean crisis can be found
here.
Top all this off with a major terrorist attack in India which
killed over 180 people via train bombing, and you get a fairly crappy week.
With all this chaos, oil prices have shot up to record highs of $78/barrel. It's only going higher in my opinion. Gold prices have also started moving up rapidly to $660/ounce. Usually in chaotic times, people will invest in gold to preserve their wealth as opposed to other things such as stocks or bonds.
The question now is, how much worse can things get? It's time to pray for the world if you haven't done so already.