Colin Powell to President Bush: "You break it you own it!"

The Kurds CERTAINLY deserve to keep Kirkuk! The Kurds will more effectively govern and protect Kirkuk than the much more corrupt Baghdadi government. "To the east the Kurds have control of Kirkuk and, to the consternation of the Iraqi government, seem intent on keeping it." Amazing, even with all the turmoil the OIL flow out of Iraq continues to increase and flow: oil is part of the key to Iraq's near future and that whole area of the Middle East. If I was the Kurds there is -- NO WAY -- I would return Kirkuk to Baghdad.

They aren't false economies. But, they are dependent and vulnerable economies, especially if the flow of oil is disrupted. Oil has allowed Saudi Arabia, Qatar, Kuwait, United Arab Emirates, and others to build cities in deserts, build and store financial assets, and expand their trade significantly in other business sectors other than oil: they are still not strong diversified economies, but the trade for goods in the Persian Gulf/Middle East is expanding, is growing, and it is a fact. On the other hand, the problem with Venezuela is that it has excelled in mismanaging its oil resources politically and economically especially if compared to the mentioned Middle Eastern oil nations, so the fate of all oil countries won't necessarily be the same as that of this South American nation. Furthermore, it also didn't help that the now deceased Hugo Chavez did politically isolate his nation from almost every other country in the globe (with the exception of Russia, Cuba, and Iran). Understandably, these Gulf Nations, North African Nations, and others around the world with oil as their main economic asset do survive largely do to petrol, but that doesn't make their economies false, just less balanced and diversified, and much more susceptible to disruptions of their oil. For Iraq, oil is the foundation that is allowing the rest of the business and trade in this old nation to grow even in spite of war and civil strife, which is quite amazing.

Agree. They bought much or most of the knowledge, tech, and experience to build these sand cities, but the cities were built nonetheless, and the result was that their trade has been flowing and growing ever since, that's the point. The Arabs knew this and managed their oil resources much better than Venezuela and most African Oil Nations. They are a force financially and they do affect the Middle East and the rest of the world. They have all this "new money" and they are buying up businesses that bring in trade (which in turn brings in more money), also weapons, mercenaries, education, gold, silver, and of course people (from the well skilled to the almost slave labor type personnel). Yes they are decades away from indigenous self-made economies, but they are playing their oil cards that they have been given very well just as China has with their resources to become the players geopolitically that they once were not in their regions. Fascinating thing is that these sand cities are going to CONTINUE to grow and be built, or as you said it "bought." But, then as all business people know: it takes money to make money. Their trade will continue to expand.