That havnt been repaid the last two times they did this.
Dipping so deeply into a strategic reserve and not building it back is a bad idea.
Oh, and fun fact….the US strategic grain stockpile has exactly zero grains in it. Some guy had the bright idea that it would be cheaper if they just had a bunch of money in an account instead of actual stockpiles of grain because they could just buy it on the open market if they needed to. Like during a global food shortage or something. I wish I was kidding
Apparently we depleted the reserve we *did* have in 2000 and since then we just assume the harvests we get will always be sufficient.
BatmanOnMars on
So if they loan it companies can just send it abroad right? Seems kind of self defeating and… Corrupt?
This crisis is a reminder why so many countries that the US has disrupted or coup-ed sought to nationalize their oil industries. If such an important resource is commodified, in times of crisis you can’t actually depend on it. Now we’re getting rid of a public stock of oil and it probably won’t move the needle on oil prices.
2 Comments
That havnt been repaid the last two times they did this.
Dipping so deeply into a strategic reserve and not building it back is a bad idea.
Oh, and fun fact….the US strategic grain stockpile has exactly zero grains in it. Some guy had the bright idea that it would be cheaper if they just had a bunch of money in an account instead of actual stockpiles of grain because they could just buy it on the open market if they needed to. Like during a global food shortage or something. I wish I was kidding
https://jheconomics.com/the-case-for-strategic-reserves/
Apparently we depleted the reserve we *did* have in 2000 and since then we just assume the harvests we get will always be sufficient.
So if they loan it companies can just send it abroad right? Seems kind of self defeating and… Corrupt?
This crisis is a reminder why so many countries that the US has disrupted or coup-ed sought to nationalize their oil industries. If such an important resource is commodified, in times of crisis you can’t actually depend on it. Now we’re getting rid of a public stock of oil and it probably won’t move the needle on oil prices.