[lbo-talk] Descended into chaos...

Jim Devine jdevine03 at gmail.com
Mon Jul 25 12:54:47 PDT 2005


On 7/25/05, Peter Lavelle <untimely_thoughts at yahoo.com> wrote:
> Just a quick comment on oil prices. It is a myth that
> petro consuming countries are obsessed with oil
> prices.

It's not petrol-consuming countries that are so obsessed. It's their foreign policy-making elites. Further, I'd say they're not interested in the price as much as the scarcity-rents (i.e., price _minus_ cost of production). Thus, the focus on places like Saudi Arabia, where rents are especially high. On top of that, as Doug noted, it's the _control_ of potential rent income that's crucial. -- Jim Devine "Science is the belief in the ignorance of the experts" -- Richard Feynman



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