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If they still sold their oil, just not to us, then there would be no problem whatsoever. If they cut off production completely, they would lose trillions. That is economic suicide. http://www.econlib.org/library/Enc/OPEC.html Contrary to what many noneconomists believe, the 1973 price increase was not caused by the oil "embargo" (refusal to sell) directed at the United States and the Netherlands that year by the Arab members of OPEC. Instead, OPEC reduced its production of crude oil, thus raising world oil prices substantially. The embargo against the United States and the Netherlands had no effect whatever: both nations were able to obtain oil at the same prices as all other nations. The failure of this selective embargo was predictable. Oil is a fungible commodity that can easily be resold among buyers. Therefore, sellers who try to deny oil to buyer A will find other buyers purchasing more oil, some of which will be resold by them to buyer A.
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. "It is extremely difficult for our contemporaries to conceive of the conditions of free banking because they take government interference with banking for granted and as necessary" -- Ludwig von Mises Join the Libertarians!
The Cato Institute ......................The Ludwig von Mises Institute ...................The Prometheus Institute |
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"Conservatives Reward and Admire Achievement, Liberals Reward and Admire Non-Achievement" |
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__________________
. "It is extremely difficult for our contemporaries to conceive of the conditions of free banking because they take government interference with banking for granted and as necessary" -- Ludwig von Mises Join the Libertarians!
The Cato Institute ......................The Ludwig von Mises Institute ...................The Prometheus Institute |
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So you have no idea on your own in your own words? Interesting
__________________
"Conservatives Reward and Admire Achievement, Liberals Reward and Admire Non-Achievement" |
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Quote:
__________________
. "It is extremely difficult for our contemporaries to conceive of the conditions of free banking because they take government interference with banking for granted and as necessary" -- Ludwig von Mises Join the Libertarians!
The Cato Institute ......................The Ludwig von Mises Institute ...................The Prometheus Institute |
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