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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (150615)8/28/2002 7:29:07 PM
From: tejek  Read Replies (1) of 1585479
 
Okay......let me think this through. If you have oil, you can barter for food and clothing etc. If you have nothing, you can't barter for anything.
The US has just about everything, the Saudis have just oil. We even have oil just no enough compared to what we want to consume.

Lets put it this way if we couldn't buy any imported oil (not just from Saudi) and the Saudi's could not sell any (not just to us), their whole economy would become third world while we would just go through a severe recession. We might have a decade where our economy doesn't grow much, they would fall off the cliff economically and probably politically.

Tim, its convenient to think they wouldn't be able to sell our ten percent to anyone else but its not very likely. Nonetheless, I would expect they would have some dislocation as well......depending how tight they run their budgets. But I still think its us that would suffer most.

We could sell some of our natural resources and agricultural products but most likely some of the remaining oil intended for industrial use would have to be diverted to residential uses. So I don't know if we would have much leftover in terms of consumer products to sell the rest of the world. And even if we did, they probably wouldn't be competitive because I bet the rest of the oil we get from Saudi competitors would be expensive. I'm suspect even Russia would raise the price knowing that we are between a rock and a hard place.

Therefore, I don't see how the Saudis would suffer as badly or worse than we would.

ted
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