Take away the Saudis' oil weapon.

• Author: Schnepper, Jeff A.
• Position: Economic Observer - Brief Article

REMEMBER THE GOLDEN RULE: He who has the gold rules! Economics will always trump politics over the long run. Even in the most-convoluted and difficult situations, economic considerations may mold solutions to intractable disputes. Let's take a look at a possible economic solution to the Middle East quagmire.

Start with a little historical perspective. As you read on, don't forget that history is always written by the victors. Everyone wants to be loved, but it's more important for a nation-state to be respected. If it isn't respected, it had better be feared to survive.

Let's look at the Middle East from a real world perspective. Whether the claims of the Palestinians displaced some five decades ago preempt those of the Israelis displaced centuries ago is less important than whether they can live together peacefully today.

The so-called "peace process" has been framed in a land-for-peace structure which disguises the real issue. Israel has never even suggested the annexation of either Gaza or the West Bank. In fact, former Israeli Prime Minister Ehud Barak offered to give the Palestinians more than twice the territory they now control in the West Bank (up from about 42% to 95%) and all of Gaza. The proposal would have pulled back most of the Israeli settlements and given the Palestinians sovereignty over the Arab parts of Jerusalem and the Muslim holy sites. It was rejected by PLO leader Yasser Arafat.

Israel has accepted the inevitability of a Palestinian nation, but refuses to grant it the credibility of recognition until its leaders accept and respect Israel's existence. Israel cannot survive if it creates a nation next door that not only supports, but actively trains and promotes, terrorism and the destruction of the Israeli state.

The truth of the matter is that the current Palestinian leadership has come to power through terrorism and has just one major objective--the total destruction of Israel. Every deal is temporary. Every agreement is valid only until it's broken. Their policy is simple. Look at the last 30 years: "Give me what I demand or I'll hijack your airplanes and kill your Olympic athletes." If that doesn't work, well, I saw a lot of Palestinians dancing and celebrating the destruction of the Twin Towers on Sept. 11. What we got from Israel was offers of help and condolence.

There can be no peace no matter how many concessions are made if one party's ultimate objective is the total destruction of the other. While I respect...