The 2020s appear to be a never-ending parade of global groupthink. The Russian Oil Price Cap is yet another stupid and self-destructive idea that should have been suffocated at birth. It cannot possibly achieve what its supporters claim, and it represents emotional value signalling from the Big Hug Club rather than any semblance of rational thought.
The belief is pure neoliberal hubris, based upon a category mistake and a complete misunderstanding of how national economies and their currencies work....
New Wayland
See also Phil Pilkington's piece in Unherd on the same lines
ReplyDeleteThe level of crazy is starting to get very worrying.
Neil just wondering if you're aware that warren mosler believes that Saudis set price of their oil and let buyers decide how much to buy. If he is correct, does that mean that everytime you hear in the news that Saudis are going to cut their production, it's actually bearish and not bullish like the mainstream believes?
ReplyDeletehttps://en.wikipedia.org/wiki/Swing_producer
ReplyDeleteI don't see who Phil Pilkington's article proves anything. He draws a chart and says the price can't fall below this line? Of course it can. Russia will sell its discounted oil to other countries, like China.
ReplyDelete"Missiles are not made with dollars. They are made by people working in factories fabricating and assembling them." -Neil W.
ReplyDelete(And those workers are paid in rubles.)
Exactly.
Western policy idiots think Russia is funding its war with dollars or euro. Total morons. Janet Yellen is an imbecile.
“ The oil cartels may not raise production to maintain oil prices in the usual range. ”
ReplyDeleteYo Russia is part of OPEC+
So the non cartel sector is trying to cap the price of just one component nation in the cartel sector…. Doesn’t make much sense…
there still remains the cartel…
The cartel is the problem….
You got 3 choices:
1. kill everyone there in the cartel sector and just go take the oil….
2, increase non cartel sector production of oil…
3. Accelerate application of electric motors as primary method of vehicular work…
Wasn't Russian oil selling for around $60 ?
ReplyDeleteRight if not for the cartel in the first place they lucky to get $20…
ReplyDeleteNow they’re trying to corner the wheat market..
ReplyDeleteWe ought to Noah’s flood these people…