SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Booms, Busts, and Recoveries
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: pezz who wrote (29740)3/17/2003 3:55:54 PM
From: Maurice Winn  Read Replies (1) of 74559
 
Pezz, you obviously don't understand American politics, where Americans have the best politicians money can buy.

You are correct that to get power, they need to win elections. To win elections, they need money. To get money, they need to pander to their supporting voters and funders. The funders are the ones with the money. In King George II's case, that's those with the oil. He's an oil man.

That political equation flows overseas too. Saudi Arabia isn't best friends with King George II's Dad and their buddies because the Georges like sand, sheiks and sadism. See if you can guess what the reason might be. What do they have in common?

In democracies, you need to think about the effect of diffuse costs and concentrated benefits and how that affects voting and support. High petrol prices are a diffuse cost. The concentrated benefit is to the USA oil industry and the politicians that oil industry supports.

10 million barrels a day of oil [and energy equivalents] is only costing $100 million over a long run reasonable price at $30 a barrel instead of $20 a barrel. It's only $200 million a day higher than it would be at all time low prices of $10 a barrel.

Now, think of the trade deficit, Federal deficit and compare those with $100 million a day. Think of the size of the USA economy in $ per day traded.

I'm sure you can see that $200 million a day isn't that big a deal in the big scheme of things. Sure, it's a ding and will be felt. But it's not like the early 1970s when oil was a BIG part of the USA economy and so was the vehicle industroy. Now General Motors and Ford market capitalisations combined are barely cash on hand for Microsoft.

Mqurice
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News