Dear Wealth Daily reader:
The United States has had a long history of supporting free trade.
As a stanch capitalist, I support free trade whole heartily.
Global trading encourages global economic development. It allows all nations to prosper and develop fairly and equitably.
However we must consider that globalization through free trade involves the integration of political, social, and cultural norms and values. Many times cultural norms and values clash resulting in dispute.
The murderers of September 11 relied on our political and economical openness as well as our society diversity to blend into our society to conduct their horrendous acts effortlessly.
This is why Washington must implement limitations on free trade when there is a threat to national security.
Last weeks bid from UNOOC to buy Unocal is such a threat.
Affordable energy is and always will be the lifeblood of industrialized nations. Without it they cannot prosper.
Right now the US economy is susceptible because our economy is dependant on foreign oil and gas.
If CNOOC successfully buys out Unocal’s the US will become even more dependent on foreign oil. Is that what we want?
Washington seriously needs to take a look at UNOOC’s bid and consider is a national security threat.
CNOOC’s top official, Fu Chengyu, called the proposed buyout of Unocal a "simple commercial transaction".
However when I first heard of the takeover I thought of Communist leader Vladimir Ilyich Lenin’s comment: "The Capitalists will sell us the rope with which we will hang them."
Former CIA director James Woolsey told Forbes that the bid "is a conscious long-term effort to take over . . . as much of the American economy as possible."
Unocal’s domestic resources are relatively small, however, the company’s more significant Asian energy assets more likely appeal to the Chinese company. The acquisition is expected to double CNOOC’s energy production.
Free trade, globalization and national security are more intertwined than ever.
As the events of September 11 made crystal clear, with globalization we all now find ourselves on the front lines of both international trade and U.S. national security.
Washington must stop CNOOC from buying Unocal at any cost.
– Luke Burgess