06-07-2016, 07:15 AM
(05-17-2016, 12:34 PM)Cynic Hero Wrote: As I mentioned before an unspoken reason for trump's policies is our entire economy's dependence on petrodollars. Because of this, the saudis...can simply cut of our oil.)...If That occurs the US economy would immediately crumble and we would be reduced to a pre-industrial subsistence economy practically overnight.
Are you unaware that the US is a top oil producer? If the Saudis were to cut off world oils sales it would drive world oil prices up. With higher prices US frackers would be back in the pink and the previous growth trend would resume. With higher prices, demand for gas and diesel would decline. US oil production would match oil consumption long before US per capita consumption began to approach the levels in the rest of the industrialized worth. The adjustment would involve a nasty recession, but we are due for one anyways with the overvalued asset markets. Higher oil prices would speed the development of alternatives. Net impact over the intermediate terms would be favorable to the US.
Meanwhile the impact on Saudi Arabia would be catastrophic. Without oil sales their government would run out of money in just a year or so, there would be economic depression and it is possible the government would fall. If it *ever* made sense for the Saudis to cut off oil sales they would have done if it BEFORE the fracking boom. Now if they were to do it, it doesn't hurt us and really hurts them. I wish they would do it, I intensely dislike the Saudi regime.