A much greater problem arises if the OPEC countries try to compensate for lost buying power by raising prices. Thanks to our retarded energy policies (thank you Greenies) we are even more vulnerable than we were during the oil embargo.
We are pumpin oil out of Alaska like it's goin outta style. Problem is: we are shippin the bulk of it to Japan, at a discount to the market price, in exchange for them financing our deficit.
que tin foil hat.
please source this. i'm assuming you have data that show that japan's oil purchases from alaska are below market price.
espeically seeing as how oil is pumped out by private institutions and the deficit is a government issue, the govt would have to provide compensation to the companies for selling to japan at below market prices.
try again though
The U.S. subsidizes the price difference.
My source: it was on either CNN or FOX about 1-2 yrs ago.
I don't make crap up.
just because you don't make it up doesn't mean it is true. CNN & FOX aren't reliable sources. it shouldn't be hard to see whether the US gives the difference in oil prices to companies that sell to japan.
so i'd like to see some kind of source before even considering that. japan's purchases of govt securities aren't as a result of oil but rather as a historic tendency to want to control the level of their currency. further, they have trade surpluses w/ the US so those two are why they have such huge foreign exchange reserves of USDs.