Posted on 10/13/2022 10:41:42 AM PDT by Kazan
MOSCOW, October 12. /TASS/. Russian President Vladimir Putin quoted Nobel winner Milton Friedman on the reasons for the shortage of goods in the markets, commenting on the Western idea to impose a price cap on Russian energy resources.
"In this regard, I would like to quote American economist, Nobel Prize winner Milton Friedman: ‘We economists don't know much, but we do know how to create a shortage. If you want to create a shortage of tomatoes, for example, just pass a law that retailers can't sell tomatoes for more than two cents per pound. Instantly you'll have a tomato shortage. It's the same with oil or gas’. Let me remind you that Milton Friedman passed away in 2006 and he had nothing to do with the Russian government and can no longer be branded Russian agent of influence," Putin said.
"These appear to be universal facts. However, some nations' leaders and their bureaucratic elite ignore these obvious factors," the Russian leader added.
Putin totally gets it. He knows exactly how the Dems and the Deep State operate. He is killing yet another “Russia conspiracy theory” before it even starts.
Chuckle.
Well this sucks! Putin makes more economic sense than our idiot-in-chief and his merry band of morons.
Groan.
He either totally misunderstood the quote or misrepresented economics. The oil cap is price fixing among purchasers not sellers. An agreement among oil buyers to not pay more than a set amount. Like OPEC+ but for purchasers.
But, in the end Putin’s point is valid just not for the reason given. Sanctions and purchase price fixing wont work due to black markets.
Drill Baby Drill
Too funny. Putin comes off as more of a capitalist than Biden and the rest of the neomarxist socialists.
Putin seems to fully understand the idiocy of US deep-state/corporate media.
Scratch a Zeeper and you will find a Log Cabin Republican with a log in his cabin.
Milton wasn’t referring to price caps on just one producer.
Non Russia producers will still enjoy a market price and will adjust production accordingly.
Black markets work with pot and fentanyl, but not with ocean tankers full of oil. Too much visibility.
Putin's right on this...
No right thinking Conservative would ever side with either Biden, or price caps.
And with that said, Putin's quoting Milton Friedman is I believe, very disingenuous. Putin had every intention of using natural gas as a weapon, to drive a wedge between Europe and America in regards to the war in Ukraine.
As far as I'm concerned, Europe is getting what they asked for. Legit President Trump warned them against relying on Russian gas. Trump was right - again. Germany and the rest of Europe were wrong.
Yes, yes. But why not just sell the oil to another oil producing country and they can act as a middle man and turn around and resell the oil at the market rate?
Further, it sickens me to my core that Biden is using Ukraine and ginning up the conflict with Russia to distract from his money laundering scheme with Ukraine from getting exposed.
That we may in fact be on the verge of WW3 because of an incompetent, incontinent, corrupt, dementia addled idiot that allegedly 81,000,000 people voted into office pisses me off to no end.
At the very least, that middle man is going to want severe discounts both to make a profit and to compensate for the risk of violating a UN sanction.
And oil flows can still be largely monitored. So it’s doubtful they could get away with much.
and if they middle man understands nobody else is going to be offeing more than the cap. They can position their bid to the lowside.
And oil flows can still be largely monitored.
- - - - - - -
Those monitoring will look the other way to get cheaper oil.
Good luck trying to defeat economics.
and if they middle man understands nobody else is going to be offeing more than the cap
- - - - - - -
Wow! Thanks for letting me know that communism can work! You finally found how.
I don’t understand price caps:
Putin: the price is $80 per barrel
Euro weeny: We have decided to institute a price cap of $50/barrel. We want 10 million barrels.
Putin: Rikiight... Tell you what, I’ll just sell my oil at $85/barrel somewhere else. You get nothing.
Euro weenie: But, but... you can’t do that! You must follow international conventions and sell to us at the price we define.
Putin: Suuure.. let’s chat next spring after winter is over. If you buy our Vodka you’ll feel warmer.
What am I missing here? How can the EU impose a price cap? I don’t see how it makes sense or how is it enforceable,
“What am I missing here? How can the EU impose a price cap?”
Europe sets a ‘cartel’ buying price of $50. Just meaning they agree not to buy “Russian oil” at more than $50. So Russia sells it to another buyer for say $75 or a little under market then they sell this rebranded “Turkish oil” or “whatever oil” to Europe at market price and collect the difference as their fee to transship Russian oil. Everybody wins. It’s Adam Smith’s “Invisible Hand” of capitalism. It beats politicians almost every time.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.