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0 pointspiva0013d ago0 comments

> If the goal was to hurt China / BRICS and kneecap Iran it seems on point.

While also hurting Europe, South Korea, Japan, the Philippines, and many more. Very on point...

It will hurt everyone, Americans included, oil is a global market, fertilisers are a global market, those are basic inputs for probably every single thing produced in the world.

So now all of us around the globe have to pay the price for American Imperialism, compounded by the complete shattering of the USA's soft power as an ally, this will only create more animosity against the USA from all sides. Very on point.

But the USA oil industry can make a buck until everything buckles, or perhaps the USA admin will introduce price controls like in the 1970s, that worked very well too.

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spwa413d ago

> It will hurt everyone, Americans included, oil is a global market, fertilisers are a global market, those are basic inputs for probably every single thing produced in the world.

Only because those countries choose for that to be the case. For example, Saudi Arabia and Russia don't do that. Local prices and export prices are different.

But the US, Canada, the Netherlands, and long list of other countries could make this crisis have zero effect on local prices. They choose to take every excuse to raise prices (in fact the Netherlands goes further: if sales tax on gas raises because prices raise, the amount of tax paid is kept constant if prices drop. So they artificially raise local gas prices. So if gas prices are low, tax on gas has at one point reached 72%), but it is fundamentally a government choice.

mamonster13d ago

>But the US, Canada, the Netherlands, and long list of other countries could make this crisis have zero effect on local prices.

The US Government cannot force US companies to sell at a lower domestic price if they can get a higher price exporting. I know that God-Emperor Trump pretends that he can command the oil sector to make less money, but he can't.

>For example, Saudi Arabia and Russia don't do that

2 countries famous for being beacons of free-market capitalism.

Marsymars13d ago

> The US Government cannot force US companies to sell at a lower domestic price if they can get a higher price exporting.

That's not a mechanism that anyone is proposing. The US government can, however, apply an export tariff that's used to subsidize local prices.

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