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🗣️ | US-Israel/Iran | Post CF Anouncment | ANALYSIS OF REPORTS

RiffRaff said:
...until those prices start hurting their finances. Interesting how Americans don't give a shit about policies or wars until those policies or wars start impacting them directly.
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The problem is, if you implement price controls, you will also have to implement rationing. Higher prices naturally reduce demand, which is important to keep the equilibrium between supply and demand. If prices are artificially low, you start getting shortages. That would cause people to start hoarding resources, which in turn causes worse shortages. The only option at that point is to artificially lower demand with rationing.

People need to ask- would they rather have petroleum products available when they need it, albeit at a higher price that encourages them to be more strategic about their use, or would they rather have the same products at an artificially lower price but unavailable when they might need it?
 
willrod1989 said:
The problem is, if you implement price controls, you will also have to implement rationing. Higher prices naturally reduce demand, which is important to keep the equilibrium between supply and demand. If prices are artificially low, you start getting shortages. That would cause people to start hoarding resources, which in turn causes worse shortages. The only option at that point is to artificially lower demand with rationing.

People need to ask- would they rather have petroleum products available when they need it, albeit at a higher price that encourages them to be more strategic about their use, or would they rather have the same products at an artificially lower price but unavailable when they might need it?
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There are softer levers to pull than straight up price controls to keep domestic prices under control. Export controls are one of them, but it's also one that could cause bigger problems.
 
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willrod1989 said:
The problem is, if you implement price controls, you will also have to implement rationing. Higher prices naturally reduce demand, which is important to keep the equilibrium between supply and demand. If prices are artificially low, you start getting shortages. That would cause people to start hoarding resources, which in turn causes worse shortages. The only option at that point is to artificially lower demand with rationing.

People need to ask- would they rather have petroleum products available when they need it, albeit at a higher price that encourages them to be more strategic about their use, or would they rather have the same products at an artificially lower price but unavailable when they might need it?
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I think you would have a tremendous amount of smuggling to Mexico and maybd Canada. Now you need more policing with increasing noncompliance.

@willrod1989 this is tremendously useful post for me and hopefully others thank you for the example examples. Now I’m gonna go back to my book, the life and Times of John Maynard.
 
Cilvilt_beredskap said:
So much for 'never closing the strait again'. Interesting how Iran is regaining the narrative and throwing the ball to the US.
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It’s an unnamed Iranian source, I don’t believe either side and it’s way too soon to tell what’s happening but I have a hard time believing they would announce the strait is reopening knowing the U.S. is blockading it, and then change their mind because of said blockade that fast.
 
Snowfall said:
It’s an unnamed Iranian source, I don’t believe either side and it’s way too soon to tell what’s happening but I have a hard time believing they would announce the strait is reopening knowing the U.S. is blockading it, and then change their mind because of said blockade that fast.
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I heard it on the news this morning. Opening the Strait was apparently in response to the ceasefire in Lebanon.

I, too, have a hard time believing it when Iran is being blockaded.

Perhaps it is a gesture to see what the US will do in response.

I think Iran is hurting more than we know. Explains why Iran has not reacted to the blockade.
 
I wonder how many of these opinions expressed here are motivated or cultured by what their being told to think about events.
 
DEFCON Warning System said:
I heard it on the news this morning. Opening the Strait was apparently in response to the ceasefire in Lebanon.

I, too, have a hard time believing it when Iran is being blockaded.

Perhaps it is a gesture to see what the US will do in response.

I think Iran is hurting more than we know. Explains why Iran has not reacted to the blockade.
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The stock market jumped 1,000 points after the announcement. On a Friday. I wonder what will happen to affect the markets on Monday or Tuesday? :unsure:
 
teekay99 said:
No side of any issue is immune from this.
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One MUST read foreign language prrss and articles to gain any insight into almost any situation.

It clear that even though Iran was a Russian client state (loosely) and is now becoming a Chinese client state, neither of these two powers are privately upset or even publicly “shocked”. Same for every arab country not in the grips of terrorists..

Iran is simply unliked by the world at large and hated by Arab States. But you wouldnt know that if all you watched was MSNBC or even Fox News. Of course you now need to find some counter points to my opinions in order to balance it.

If the news doesn’t make you squirm a little then you’ve already got a great non-bias morning read or you simply don’t care as you have swallowed whatever Kool-Aid brand to which you are attached.
 
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