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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (340287)	6/14/2007 10:55:26 AM
From: TimF	Read Replies (1) \| Respond to of 1575146

Oil is a big concern but it isn't the only concern behind Iraq. As for calling the spending on Iraq a subsidy. No I wouldn't call it that. It doesn't lower oil or gasoline prices, if anything the risk premium has increased for now. As for the possibility that it might lower them in the long run. Well if by lower you directly cause them to decrease, then I don't think it will. OTOH it can reduce the risk of a large increase by preventing oil fields from being seized, or destroyed (destroyed meaning the rigs and pumps are destroyed, obviously the oil would still be in the ground). Is that a subsidy? Well if it is, then police protection of stores is a subsidy for what they sell, and of factories is a subsidy of what they produce. I don't think its very useful to refer to protecting a resource from violent seizure or destruction to be a subsidy.