Clearly, though, the attempt to strangle the new tight-oil industry in its cradle is a blatantly telegraphed dimension of the present Saudi oil-pricing strategy, and one conforming to a consistent pattern. If Mullaney’s figures can be trusted, things could get intense:

… data from the state of North Dakota says the average cost per barrel in America’s top oil-producing state is only $42 — to make a 10% return for rig owners. In McKenzie County, which boasts 72 of the state’s 188 oil rigs, the average production cost is just $30, the state says. Another 27 rigs are around $29.

If oil-price chicken is going to be exploring these depths, there’s going to be some exceptional pain among the world’s principal producers. Russia is being economically cornered in a way that is disturbingly reminiscent of policy towards Japan pre-WWII, when oil geopolitics was notoriously translated into military desperation. Venezuela will collapse. Iran is also under obvious pressure.

How is it possible that a world run by manic Keynesians gets to quaff on this deflationary tonic? It should hide a lot of structural ruin, at least in the short term. Global economic meltdown is deferred — and ultimately deepened — once again. (We’ll probably get the war first.)

ADDED: “Saudi Arabia, OPEC’s biggest oil producer, has reportedly said the oil price should stabilize at about $60 per barrel … Many OPEC members have been put under budgetary pressure by the lower oil price,as exporting countries rely heavily on oil revenues. Iran needs a price at $140 per barrel to balance its budget. Saudi Arabia needs a price of $90.70 per barrel, as it can count on huge reserves. Qatar needs $77.60 per barrel, and the United Arab Emirates $73.30 per barrel. […] In early November, OPEC officials said the price of $70 per barrel is a threshold at which other member countries could start panicking.”

ADDED: Some oil geopolitics musings from Fernandez.

Once it slips the collar, ‘must’ reverts to its status as the most preposterous word in the English language, an instrument of sheer obfuscation. Watch it go:

The United States must review its policies across the Middle East. … It must take a stand against Riyadh’s promotion of exclusionary Wahhabism. […] … Likewise, pressure must be placed on Egypt to abandon its witch hunt of the Muslim Brotherhood. In undertaking an effective counter terrorism strategy, the United States must partner with the Arab states to undertake political reforms that ultimately lead to underwriting a social contract in which every group of the population are represented and protected. […] … If the United States and Iraqi government want to defeat ISIS, they must now ensure the inclusion and protection of Iraqi Sunnis, Kurds and Yazidis, along with the majority Shi’ites [this one is minimally OK]. […] … Eventually, a process of reconciliation must be initiated between Shi’ites and Sunnis. This centuries-old dispute is played out today in a proxy war between Iran and Saudi Arabia, which has produced a monster that threatens the national security of not only Middle Eastern nations, but also the United States. It must come to an end. […] … The Obama Administration must pursue a policy of severe sanctions against any and all countries that finance jihadist — even if they are our own allies. … What will ultimately turn the tide in the Middle East are groups that actively advocate for a democratic culture and its values around the Arab world. A campaign to promote these ideas on every level must begin, as part of the counterterrorism initiative launched by Kerry. [Emphases added.]

Must they, really? Will they? Can they?

It’s irritating to see moral fanaticism — betrayed by its distinctive combination of groundless certainty and communicative fervor — masquerading as realistic analysis. The disguise is only necessary because the prescription so exorbitantly exceeds the diagnosis, tripping eagerly into glassy-eyed deontological intellectual abandonment.

“The Middle East must stop being the Middle East, and America must help to make this happen.” It can’t, and it won’t, on both counts. The musty smell is simply annoying.

Iraq, and Libya have pretty much fallen to pieces, and Lebanon breathes whatever vapors Syria wafts its way. Egypt is an economic corpse that doesn’t know it’s dead and so won’t fall down. (For my ducats there is no better symbol of the Egyptian circumstance than Cairo’s City of the Dead — a vast cemetery full of countless squatters.) Jordan is suffering a multi-sourced nervous breakdown, complete with anti-Hashemite mobs. Algeria and Bahrain are armed camps, albeit for different reasons. Tunisia is a political weathervane that cannot control its borders. Morocco is fragile and faces a rising Berber challenge. Yemen is an armed mess. Sudan is a truncated basket case. Only great gobs of resource rents keep Saudi Arabia, the UAE, and Qatar afloat and seemingly quiescent. Oman may be the only Arab country that has managed to keep its balance, and it’s not a real state anyway — just a family with a flag.

This sad state of affairs is not the wayward result of the so-called Arab Spring. Not only does it long predate the Arab Spring, but all that misnamed and wildly misunderstood phenomenon wrought was to accelerate the ongoing decay of the highly unappealing authority relationships in these societies. It has disrupted the ugly and the unacceptable in different ways in different countries, since they’re all different. But with the possible exception of Tunisia (and the jury is still out), the results have not been any improvement on the status quo ante. Some state authorities have their backs up and are trying to be more oppressive than ever, while others are simply flailing.

The ruling classes are right to be worried. Trust in the state has suffered, and rightly so, because the management efficiency of these states, never very good in most places, has eroded further in the face of deteriorating economies and social infrastructure (education, housing, and health care) and the rise of expectations among more mobilized, youthful, cyber-wired, literate, and urbanized populations. All these creaking, slow-moving and mostly corrupt states are in deepening trouble, if they haven’t yet collapsed entirely.

So here we have a bundle of collapsing or very weak states, states that never achieved Weberian status as modern states in the first place, and what is the favorite obsession of the (so-called) international community? To create yet another Arab state, called Palestine.