Oh, I just realized another way the oil market is distorted:  Governments in 
many countries stabilize the price of oil and gas with subsidies.  I hear the 
governments in both India and China, for example, control the price of oil and 
gas to keep it affordable to the masses.  I know it happens in many other 
countries, too.  At the other end, European and other governments tax oil and 
gas heavily, further distorting market mechanisms.


From: Bob Giramma 
Sent: Friday, May 09, 2008 1:56 PM
To: [email protected] 
Subject: Re: [Libertarian] Stop the War FOR Terror


Speaking of oil ...  Heard on the radio:  Around 80% of the world's oil is 
controlled by governments.

I would argue that market mechanisms are rather dysfunctional in such a 
situation.  It's not just supply and demand that affect price and access.


From: goat! 
Sent: Friday, May 09, 2008 11:29 AM
To: [email protected] 
Subject: Re: [Libertarian] Re: Stop the War FOR Terror


[EMAIL PROTECTED] wrote:
> Why did we invade Iraq?
> 1. Saddam was an SOB.
> 2. He might be giving aid and comfort to our enemies.
> 3. He might want weapons of mass destruction.
> 4. He had oil (which we were doing without, but coveted).

Actually, we weren't doing without the oil either,
"we" just wasn't making most the money off of it.
Goat


 

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