Why wouldn't he? Oil is $84 a barrel. Don't want to pay $84 for a barrel, fuck off. That simple.
Now, watch as Europeans pay the US $110 a barrel because they can't buy Russian oil for $60. SLAVA UKRAINI ya dumb fucks. How much of that FTX money that you donated to "Ukraine" do you think will ever surface?
[ - ] mxcviel 1 point 2.4 yearsDec 27, 2022 20:52:43 ago (+1/-0)
No one says this aloud and plain for some reason, maybe most are also unaware of this. But US is actually in war with Europe, using EU as a battering ram, since 2015 at least, when Obama send migrants from "Syria". So maybe "dumb fucks" is not a proper wording.
By setting a price cap, you're excluding all sellers except those who will sell at or below that cap. That will override the demand curve, and will tend to shift the supply curve downwards as some sellers are convinced to reduce their price to the cap level rather than not being able to sell.
A mandatory minimum does the reverse, overriding the supply curve and forcing the demand curve upwards somewhat as some buyers that have trouble buying from elsewhere decide to pay the minimum instead.
With both in place, assuming the price cap is below the mandatory minimum, it means none can be bought or sold, at least not legally; it's essentially the same thing as the ban he imposed, except by setting the minimum at a fairly high level it's a nice upraised finger and saying, "even if you remove the cap you're gonna have to pay more now. Maybe we can negotiate a lower price later but right now, screw you."
By setting a price cap, you're excluding all sellers except those who will sell at or below that cap. That will override the demand curve, and will tend to shift the supply curve downwards as some sellers are convinced to reduce their price to the cap level rather than not being able to sell.
First, the supply curve is based on the supply of oil, not the price of oil. And the supply of oil will decrease as fewer producers (Russia) supply that oil. In this case, Russia will either sell or not sell, so the price cap just puts Russia out of the market. The EU countries are betting that Russia will fold, and making that bet with European lives. Europeans will die because their government wants to sell oil and LNG at a 40% higher price than Russia.
Second, your theoretical scenario has NEVER been the case in the real world. Every time price caps are put into place, shortages are created. If it costs $79 to make and transport a Barrel of oil to market, to sell for $84 a barrel, a price cap of $60 will result in you getting nowhere near the oil that you were demanding at $84 a barrel. No one is going to consistently sell oil at a loss. On average, oil companies make 6% profit on oil sales. If the price cap is below cost, you will not get oil. Simple as.
And, you're missing the point. The price caps are not on oil. The price caps are being placed on Russian oil. Europe will pay the extra cost of the oil market without the Russian supply. Currently, that's a 40% higher price. After the price caps take effect that will go much higher. Europeans will make US Oil companies rich as fuck by squeezing out Russia and paying the higher prices.
And for what? So defense contractors and oil companies, lobbyists and politicians can all get rich as fuck while they pretend to support "muh democracy" to the tune of hundreds of thousands of dead white people? Ending in the exact same situation that it would have ended in back in March. NATO will never beat Russia using a proxy military fighting Russia on the Russian border. If you don't know that, then you're fuckin' dumb.
Yeah, it's gunna affect just about everything. Thank god I've got lots of potatoes growing even if I need to cook them over a fire. Hope water doesn't run out. F..k Putin!
Wait. If need be? You do or you don't. If you are going to the grocery store to buy food, the price of diesel plays a role in everything you buy, from farming to transportation. And that cascades down to every purchase you make because everyone else expects to be paid enough to buy this commiserate with their lifestyles, and even if that declines, the cost of gas factors in.
Not caring about gas costs is incredibly myopic. It's in your rent, mortgage rates, food, paycheck, the cost of goods, services, increases and decreases in profits and therfore your retirement investments, on and on and on.
True. And in the 21stv century, ifl your suppliers isn't authorized by the US government to sell illicit drugs to the American people, you'll get caught. Dude, they are watching all purchases of over $600, but you think you can drop 2K of cut coke without being detected?
[ + ] FreeinTX
[ - ] FreeinTX 2 points 2.4 yearsDec 27, 2022 19:39:51 ago (+2/-0)
Now, watch as Europeans pay the US $110 a barrel because they can't buy Russian oil for $60. SLAVA UKRAINI ya dumb fucks. How much of that FTX money that you donated to "Ukraine" do you think will ever surface?
[ + ] mxcviel
[ - ] mxcviel 1 point 2.4 yearsDec 27, 2022 20:52:43 ago (+1/-0)
[ + ] o0shad0o
[ - ] o0shad0o 1 point 2.4 yearsDec 27, 2022 19:05:03 ago (+1/-0)
He should've set a mandatory minimum instead...
[ + ] FreeinTX
[ - ] FreeinTX 1 point 2.4 yearsDec 27, 2022 19:40:43 ago (+1/-0)
[ + ] o0shad0o
[ - ] o0shad0o 0 points 2.4 yearsDec 27, 2022 20:36:51 ago (+0/-0)
By setting a price cap, you're excluding all sellers except those who will sell at or below that cap. That will override the demand curve, and will tend to shift the supply curve downwards as some sellers are convinced to reduce their price to the cap level rather than not being able to sell.
A mandatory minimum does the reverse, overriding the supply curve and forcing the demand curve upwards somewhat as some buyers that have trouble buying from elsewhere decide to pay the minimum instead.
With both in place, assuming the price cap is below the mandatory minimum, it means none can be bought or sold, at least not legally; it's essentially the same thing as the ban he imposed, except by setting the minimum at a fairly high level it's a nice upraised finger and saying, "even if you remove the cap you're gonna have to pay more now. Maybe we can negotiate a lower price later but right now, screw you."
[ + ] FreeinTX
[ - ] FreeinTX 0 points 2.4 yearsDec 27, 2022 20:56:23 ago (+0/-0)
First, the supply curve is based on the supply of oil, not the price of oil. And the supply of oil will decrease as fewer producers (Russia) supply that oil. In this case, Russia will either sell or not sell, so the price cap just puts Russia out of the market. The EU countries are betting that Russia will fold, and making that bet with European lives. Europeans will die because their government wants to sell oil and LNG at a 40% higher price than Russia.
Second, your theoretical scenario has NEVER been the case in the real world. Every time price caps are put into place, shortages are created. If it costs $79 to make and transport a Barrel of oil to market, to sell for $84 a barrel, a price cap of $60 will result in you getting nowhere near the oil that you were demanding at $84 a barrel. No one is going to consistently sell oil at a loss. On average, oil companies make 6% profit on oil sales. If the price cap is below cost, you will not get oil. Simple as.
And, you're missing the point. The price caps are not on oil. The price caps are being placed on Russian oil. Europe will pay the extra cost of the oil market without the Russian supply. Currently, that's a 40% higher price. After the price caps take effect that will go much higher. Europeans will make US Oil companies rich as fuck by squeezing out Russia and paying the higher prices.
And for what? So defense contractors and oil companies, lobbyists and politicians can all get rich as fuck while they pretend to support "muh democracy" to the tune of hundreds of thousands of dead white people? Ending in the exact same situation that it would have ended in back in March. NATO will never beat Russia using a proxy military fighting Russia on the Russian border. If you don't know that, then you're fuckin' dumb.
[ + ] diggernicks
[ - ] diggernicks 0 points 2.4 yearsDec 27, 2022 19:04:29 ago (+0/-0)
[ + ] paul_neri
[ - ] paul_neri [op] 0 points 2.4 yearsDec 27, 2022 19:05:13 ago (+0/-0)
[ + ] diggernicks
[ - ] diggernicks 0 points 2.4 yearsDec 27, 2022 19:06:36 ago (+0/-0)
[ + ] FreeinTX
[ - ] FreeinTX 1 point 2.4 yearsDec 27, 2022 19:41:18 ago (+1/-0)
[ + ] paul_neri
[ - ] paul_neri [op] 0 points 2.4 yearsDec 27, 2022 20:18:12 ago (+0/-0)
[ + ] diggernicks
[ - ] diggernicks 0 points 2.4 yearsDec 27, 2022 20:18:22 ago (+0/-0)
I'll buy them if need be
[ + ] FreeinTX
[ - ] FreeinTX 0 points 2.4 yearsDec 27, 2022 20:40:56 ago (+0/-0)
Not caring about gas costs is incredibly myopic. It's in your rent, mortgage rates, food, paycheck, the cost of goods, services, increases and decreases in profits and therfore your retirement investments, on and on and on.
[ + ] diggernicks
[ - ] diggernicks 0 points 2.4 yearsDec 27, 2022 20:44:17 ago (+0/-0)
+ 1 kilo of baby aspirin
Voila
Profit
[ + ] FreeinTX
[ - ] FreeinTX 0 points 2.4 yearsDec 27, 2022 21:04:53 ago (+0/-0)
[ + ] diggernicks
[ - ] diggernicks 0 points 2.4 yearsDec 27, 2022 21:19:35 ago (+0/-0)
[ + ] FreeinTX
[ - ] FreeinTX 0 points 2.4 yearsDec 27, 2022 21:24:30 ago (+0/-0)
[ + ] paul_neri
[ - ] paul_neri [op] 0 points 2.4 yearsDec 27, 2022 20:16:33 ago (+0/-0)
[ + ] diggernicks
[ - ] diggernicks 1 point 2.4 yearsDec 27, 2022 20:17:52 ago (+1/-0)
[ + ] paul_neri
[ - ] paul_neri [op] 0 points 2.4 yearsDec 27, 2022 20:19:45 ago (+0/-0)
Hurtful, damn hurtful.
[ + ] Name
[ - ] Name 0 points 2.4 yearsDec 28, 2022 04:46:31 ago (+0/-0)
[ + ] paul_neri
[ - ] paul_neri [op] 0 points 2.4 yearsDec 28, 2022 04:55:26 ago (+0/-0)