Posted on 07/01/2022 8:47:15 AM PDT by Jan_Sobieski
Led by U.S. President Joe Biden, the Group of Seven (G-7) economic powers today announced plans to ban the transport of Russian oil sold above a certain price with the goal of hurting Russia enough so that it ends its war against Ukraine. "There is only one way out: for Putin to accept that his plans in Ukraine will not succeed," said German Chancellor Olaf Scholz. The G-7’s plan is to impose a price cap on Russian oil through the regulation of petroleum shipping, banking, and insurance.
The proposal is, in a word, ludicrous. Russian President Vladimir Putin would never agree to a price cap. He would likely withhold oil from the market in the same way he has been withholding natural gas from Europe, driving up prices. Putin would then sell oil to countries including China and India at a 30-40% discount, as he has been doing, or larger. Russia produces oil at a price of just $3-$4 per barrel and Russian firms can profit with oil prices at $25-$30 per barrel. And while it’s true that there is a near-monopoly in shipping insurance, Russia has been creating alternatives to it.
Neither China nor India are likely to agree to the cap unless G-7 nations imposed severe “secondary sanctions” against them, which could escalate into a mutually destructive trade war. But even if they did formally comply, the two nations could easily cheat, as several analysts quickly noted on Twitter. “A price cap will never work,” said one. “Every refiner will bid price cap…. India and China… will cheat and pay above the cap and win all they want as [the] other option is twice the price. Nobody will know they paid it, either. Russia ends with more revenue...”
(Excerpt) Read more at michaelshellenberger.substack.com ...
Get ready for $10 - $15 gas! Don’t worry though…it’s for a good cause: “The New World Order”! Your sacrifice will never be forgotten, until tomorrow.
Neither China nor India are likely to agree to the cap unless G-7.
Game over futile
Gropey joe’s MRRA agenda continues apace.
We’ll see the spigots open as fall enters the political arena. Europeans will not freeze over Ukraine.
The G7 has very weak leadership right now
It’s impossible to imagine the depth of arrogance these elites obviously believe they wield over the world. And that they can impose some convoluted schema to enforce their aims and the imposees will never dare nor have the smarts to outwit them.
It’s kinda like global warming and the proffered cures for same.
Not one is an impressive leader. ....not even a little.
Okay then. So he agreed to the other sanctions?
How's that withholding energy from Europe working out for him? Didn't he just default for the first time in 104 years.
Many changes are in the making and Biden won’t like them.
These power hungry elites will force Putin to nuke a city just to show his isn’t kidding around and when thousands are killed they will act surprised and horrified. I’m betting on a Neutron Bomb. Kills people but not cities.
We know these people are stupid. I just don’t think we can imagine how stupid and driven by their agenda they are.
China and India will buy all the freaking oil from Russia they want to. It is simply a matter of transportation. Not a small problem but it is solvable.
How can you blame them? Most Americans are idiots who wear their “sober headed centrism” like a crystal tiara on their heads. Sure, the country’s going down the drain, but the most important thing, to these idiots (as they dutifully follow instructions from the media), is to avoid crazy conspiracy theory talk, and remain “in the middle”.
The ruling class is using America’s history of being the freest country in the world to lull people into believing that any talk about our country being taken over by thoroughly evil pyschos must be immediately dismissed, or else you’re a loon.
I was watching the jap guy at the g-7 meeting. He didn’t belong there and had a look of wonder on his face.
“The group of eight countries that do not take part in the sanctions wars - China, India, Russia, Indonesia, Brazil, Mexico, Iran, Turkey - is 24.4 per cent ahead of the old group in terms of GDP per capita.”
I really question if the G7 knows what they’re doing. I am really worried that they do.
He also wrote the book "San Fransicko" and is running for mayor of SF...
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A buyers cartel, to set price caps on something they desperately need and cannot produce.
This is comical.
He was going to pay them in gold.
Agree it’s not looking good with the world liberal order.
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