EU going price cap route for Russian oil
- Thread starter Maroon Eagle
- Start date
To elaborate, I've seen things that suggest the Indians and Chinese are already paying roughly that for Russian oil. Why is it a bad idea for the Euros to do the same? That is a seriously honest question. I have no preconceived notions on this one.
From the article: they waited until oil is less than $60 to enact this price cap of $60 and, “The reality is that it is unlikely to be binding given where oil prices are now.”
But seriously, there are some people who are strongly opposed to freezing to death
Nothing wrong with going lower at all. The less money they have the better I'd say. Maybe the cap is too high?
I’m all for it. I say we fix cotton at $1.25lb, beans at $16bu, wheat at $10bu, and corn at $12bu. ***********
It is very likely China and India pay about that much now. The market is what it is. Europe can afford to pay more and, like us, they have. Kind of like we often pay as much as 5 times more than other countries for pharmaceuticals. That's just what the market will bear.
You forget.
What month is it now?
Thanks to demand, prices soon are going to be too damn high…
Best campaign platform, ever.Thanks to demand, prices soon are going to be too damn high…
I refuse to pay more than $1.99 for a Mcgriddle and a small coffee.
I think by late winter (if fuel prices keep trending down) you’ll see the prices at the grocery store start to come down.
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Is it? I don't know enough to see how it would play out. At one extreme, there would be enough demand from places not participating in sanctions, so just say China to make it easy, to suck up all the Russian Oil, and then people in Europe would basically freeze.
At the other extreme, China would get a discount on the oil and gas it needs, and non-Russian supplies would be sold into Europe at a slight premium, and it helps China, hurts Russia very slightly, and hurts Europe.
Presumably it's going to be somewhere in the middle. Europeans are going to pay extra. Some of them are going to face real hardship. China is going to get slightly more oil and gas than they otherwise would at a slightly cheaper price.
What's important is that Europe has heavily invested in renewable energy, so as long as the sun is shining brightly or wind blowing hard through the cold nights, this really won't be that big of a deal, and if it is a big deal, those poor people freezing or not being able to afford food, rent, and utilities are just a price that has to be paid so the upper class can feel good about what they are doing to fight climate change.
They aren't fixing the supply side, just setting their demand number for what they will pay a specific entity so that they don't inflate the coffers of a war monger. Doesn't mean they won't pay more per barrel, just means they won't pay more per barrel for oil from Russia.
It's strictly business. They set what they are willing to pay for Russian oil. If the Russians don't want to do business, they can sell it elsewhere.
Well, if the Washington Post is against it, it must be a good idea.
Just noticed it's actually a Bloomberg op-ed that was on the Post. My thoughts are the same.
A price cap only works if you have maximum participation. They’ll just sell the oil to someone else.
Of course they will, but I would think that it would still take down the price of their oil some. They supposedly already can't get full price for it.
I apologize. Please submit of listing of places that you deem worthy of analysis so that I can better myself to your line of thinking. -**
I fault Merkel among other Euros for the mess they're finding themselves in. And btw, just because you're sourcing fossil fuels from another country doesn't mean they'll be any better for global temperatures.
Merkel contended that she always saw through Putin: “I always knew he wanted to destroy Europe.” Yet she insisted — in a phrase redolent of Bismarckian Realpolitik — that it was important to maintain “a trade connection” with “the world’s second largest nuclear power.”
Merkel’s lack of regrets illustrates the fallacies of Germany’s Russia policy
Merkel contended that she always saw through Putin: “I always knew he wanted to destroy Europe.” Yet she insisted — in a phrase redolent of Bismarckian Realpolitik — that it was important to maintain “a trade connection” with “the world’s second largest nuclear power.”
Merkel’s lack of regrets illustrates the fallacies of Germany’s Russia policy
I think you're right generally, but it is still the correct route for the EU to continue to put both economic and political pressure on Russia. Other markets may be able to pay more than the EU had been paying, but they also may not. For example, China has a number of economic issues that might cause a different result or affect what they are willing to pay. At this point, with Putin losing popular support for the ground war and the fact that it is stalling/being beaten back, you play every card that you can. Limiting Russia's market options for its primary (or only) exportable commodity is a positive in this scenario.
Most likely not, as diesel prices continue to rise and there is a major shortage of diesel.
It always helps to know the slant of the publication you are reading an OP-Ed from. Their main fear seems to me to be that it might upset Russia. Isn't that exactly what it is designed to do?
They don't have many economic wizards over there. Dumb as a box of rocks when it comes to economic strategy.
Long expected.
Price caps always work. **
Welll… it only works if everyone else does it. If China pays 65 Europe is cut off from all of it. Hell… the Arabs can buy it at 65-70… then sell it on the global market for current price.
what are we gonna do… sanction them for it?
We pay more for pharmaceuticals is because we allow it from a regulatory standpoint. Other countries allow their biggest purchasers, IE their single payer healthcare system, to negotiate the price down. We don't, we haven't. We may have the capabilities now. Simple answer, we should not allow a single drug sold in the USofA that exceeds the rates paid in an average of 10 other countries set by equal economic powers. China, India, UK, Germany, France, Canada, Spain, etc. take their average and US citizens shouldn't pay anymore.
Simple solution. Everyone is welcome.
You want to see a lot fewer drugs get developed, have the US price be dictated by the price in China and India. For all the power China has because of sheer size, it's still a poor country.
I will say I'm sick of watching the other countries you listed free ride off of us while also acting like they are morally superior for doing so. We definitely should lower the price medicare will pay to some reasonable differential between the average of those countriers (still should probably be higher than what they pay; per capita income in the UK is either a little higher or a little lower than Mississippi on a PPP adjusted basis than Mississippi depending on where you look, so we are still a good bit richer than several of european countries that are considered rich.)
Not sure if the price for Medicaid reimbursements should be set lower than Medicare or not. Tend to think it should be.
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