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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jim Fleming who wrote (58377)	4/16/2006 8:49:31 PM
From: bela_ghoulashi	Read Replies (2) \| Respond to of 110194

The illusion everyone is laboring under here is that if Iran tried to close the strait, and succeeded for some period of time...days, weeks...everyone else would just lay down and do nothing. And, true, most of the world would do nothing. The Denmarks, the Ecuadors, the Canadas, the Mexicos would do nothing, because they really ARE impotent and no one expects much of anything from them anyway. But the United States, regardless of so much wishful thinking on this thread and so many others littering the SI landscape, is not impotent and can act to reopen the straights and keep them open. And there would be plenty of support for the United States to do so. Other economies would suffer more than the US if the strait was closed, economies with fewer options than the US has for dealing with it. Iran would make no more friends than Saddam made when he invaded Kuwait, and the immediate outcome would be about the same.