The End Stage of an Ideology
Thirty years ago, politicians of both major parties promised that deregulation, privatisation and the “magic of the market” would make Australia prosperous, efficient and secure. They sold off public assets, closed oil refineries, dismantled manufacturing and tied our survival to a single faith: neoliberalism – an economic and political doctrine that pursues unrestricted private profit as its highest good.
Today, that faith is being put to the test. The Strait of Hormuz has been blockaded for two months. Global oil production is down by nearly 14 million barrels per day. Fuel prices have risen by 40% since the war began. Fertiliser prices are expected to surge 31%, industrial metals are near record highs and the United Nations Development Programme warns that even if the war ended tomorrow, 32 million people across 160 countries would already have been pushed into poverty.
Australia is not insulated. It never was. The bipartisan worship of neoliberal theology has hollowed out the nation’s resilience, and now that theology is being weaponised abroad.
The War That Was Never About Nuclear Weapons
The US‑Israeli war on Iran, launched without congressional approval on 28 February 2026, was never about nuclear non‑proliferation. It was a war to control the Strait of Hormuz, the narrow channel through which approximately 20% of the world’s oil and gas exports must pass. Control the strait, control the global economy. And control the global economy, you can ration human life for profit.
The human cost is being treated as a line item. The UNDP estimates that just $6 billion in urgent subsidies would protect the most vulnerable from the worst of the energy and food shocks – a fraction of what the US spends on two weeks of this war. Instead of subsidies, Washington has chosen bombs. Instead of a liveable world, it has chosen a militarised marketplace.
The Austerity of Empire: Arms Spending as “Job Creation”
In April 2026, US Secretary of War Pete Hegseth appeared before Congress to defend a proposed $1.5 trillion defence budget for 2027 – a 50% increase over current spending. The budget boasts of creating 70,000 new Pentagon jobs.
What Hegseth did not mention was that the same war is simultaneously pushing millions into poverty. The administration celebrates arms‑industry employment while the UN warns of a global hunger crisis. This is the neoliberal model made brutally explicit: weaponise the economy, militarise the supply chain, and market the resulting devastation as ‘security’.
With US military spending already exceeding $1 trillion in 2026 and projected to reach $1.5 trillion, and global military spending having reached a record $2.887 trillion in 2025 – the 11th consecutive year of growth – the pattern is unmistakable. The world is not being made safer. It is being made more profitable for the arms industry.
Australia’s Fatal Self‑Deception
Australia is a minor player on the global stage – a resource economy at the end of very long supply lines. In the calculations of Washington, Canberra is a transactional convenience, not an ally whose survival would alter strategic outcomes. Yet Australian governments have spent decades acting as if the market would always protect us.
The results are now undeniable:
- Fuel: Australia imports approximately 80‑90% of its refined fuel, a situation created by the deliberate closure of domestic refineries over two decades.
- Vulnerability: The country has only 38 days of petrol reserves and 31 days of diesel reserves, far below the International Energy Agency’s recommended 90‑day safety line.
- Supply chain fragility: Asian refiners that usually supply Australia are themselves starved of Middle Eastern crude; their output is already being scaled back.
The geopolitical trauma in the Middle East has transformed into a supply shock in Australia. This was not an act of God. It was an act of policy – a bipartisan act of policy that for decades prioritised short‑term profit over long‑term resilience.
AUKUS: The Submarine That Arrives After the War
When the Strait of Hormuz closes, Australia does not need a nuclear submarine in 2032. It needs fuel, fertiliser and medicine today. Yet the government’s signature defence project – the $368 billion AUKUS submarine program – has been plagued by delays, funding shortfalls and construction setbacks so severe that a British parliamentary inquiry has warned the project may be “derailed.”
Critical construction contracts have been delayed despite an urgent need to fast‑track them. A UK probe warns that “cracks are already beginning to show” and that any failure on the British side could leave Australia without any sovereign long‑term submarine capability.
AUKUS is the perfect metaphor for neoliberal defence planning: an expensive, delayed, brittle monument to yesterday’s wars, purchased while tomorrow’s crises are already at the door.
Gaza as the New Colonial Template
If there were any doubt about the brutality of the extractive model, look to Gaza. After more than two years of genocidal war, the United Nations estimates that 92% of Gaza has been destroyed, with reconstruction costs estimated at $71 billion.
The neoliberal “solutions” being proposed are not about rebuilding Palestinian life – they are about re‑engineering it, turning reconstruction into a vehicle for dispossession and corporate profit. Meanwhile, the United States continues to enable the destruction while marketing it as “self‑defence”.
What we are witnessing is the colonial period reimagined for the 21st century. The difference is not in kind, but in speed and concealment.
The Hollowing Out of Australia
While the government pours billions into submarines that won’t arrive for a decade, the domestic foundations of society are being quietly demolished:
NDIS: The National Disability Insurance Scheme – once a landmark of social decency – is facing sharp cuts to limit cost increases, with the Greens accusing Labor of wielding a “razor gang” against the disabled.
Aged care: A crisis years in the making, met with piecemeal funding announcements that do not address the underlying structural collapse.
Housing: Unaffordability has become a permanent feature of Australian life, with both major parties unwilling to confront the speculative forces driving it.
Infrastructure: Roads, hospitals, schools, public housing – once the pride of post‑war Australia – are being sold off, neglected or allowed to crumble.
The bipartisan embrace of neoliberalism has systematically dismantled the country’s ability to care for its own people. When the global storm hits – as it is now – there is no cushion left. Only the thin veneer of a resource economy that has sold its future for quarterly returns.
Conclusions: The Inevitable Collision of Faith and Reality
The war on Iran is not an anomaly. It is the logical consequence of a global system that treats human life as a variable to be optimised and suffering as an acceptable cost of extraction.
Australia is not immune. It is a perfect victim: a quiet island that believes its distance is protection, while its leaders worship an economic theology that forbids resilience and celebrates fragility as “efficiency.”
Four realities must be faced:
- The war will not end quickly. The Strait of Hormuz remains blockaded. Fuel and fertiliser prices will remain high. Thirty‑two million people are already in poverty – and that number will grow.
- Australia will not be saved by AUKUS. Submarines do not deliver fuel, fertiliser or medicine. The country’s strategic priorities are catastrophically misaligned with its actual vulnerabilities.
- Neoliberalism is not governance – it is extraction. It is a system that demands crisis, feeds on crisis and markets crisis as opportunity.
- The colonial period never ended. It merely changed logos. Gaza is the model. The only question is where the next colony will be.
We do not have the luxury of waiting for a new politics. We must build it ourselves – in our gardens, in our communities, in the refusal to accept that human life is a variable to be optimised. The empire will not save us. Only we can save each other.
Dedication: To my wife ‘S’– who saw this coming, and who still chooses the garden over the empire.
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and behind it all as we are now seeing is Israevil…