Originally Posted by BMWTurboDzl
Originally Posted by Wolf359
Originally Posted by PandaBear
Originally Posted by Wolf359
Well if there's no CAFE, how do you get smaller cars? Smaller cars are only a result of CAFE and they're hard to sell. Smaller cars are also in vogue in Europe because their governments have huge taxes on gas which if the premise of this thread is that the US doesn't get involved, the gas stays cheap and you just drive big cars or gas guzzlers. We'd probably be flooded with a lot more cars that can do 0-60 in 4-6 seconds or less.
Not true. Small cars are there when it cost a lot of money to buy oil (i.e. money you have to earn instead of print from thin air), and you need to have good security to guarantee your seller is not going to bail on you overnight, because you can't just sue another government for voiding a contract like you sue a dealership for charging you more than you agreed upon.
I don't even know what you're talking about with the above.
Oil now is cheap. If the government wasn't involved, then it stays cheap and there's no CAFE so people can buy big gas guzzlers because gas is cheap. Not only that, but with fracking, the US is starting to become an oil exporter again.
Actually. The price of oil has been subsidized for decades. That's subsidy comes in many forms but it's primarily found within US Foreign Policy and Domestic Subsidies. First and foremost it starts with the decision by the Saudis to trade oil in USD (
https://www.bloomberg.com/news/feat...d-saudi-arabia-s-41-year-u-s-debt-secret) and the USD hegemony*. There's a lot of other things which come along with this Saudi agreement (ie. Arms sales, defense agreements, etc etc).
*It allows the US to perpetually run deficits which makes imported goods cheaper than they would otherwise be.
Domestic Subsidies come in a few forms of direct subsidies, tax subsidies (Inland Waters Transport for Petroleum Subsidy), royalty subsidies (Outer Continental Shelf Deep Water Royalty Relief Act), regulatory Subsidies. For example states are having to grapple with the cost of managing thousands of abandoned wells because previous policy decisions figuratively allowed drilling companies to avoid that responsibility.
That's a decision by the Saudi's not the US. There are other currencies that could be used like the Euro or the Yen, but the US dollar is still the world's currency, not only for oil but for many other things.
You can go on and on about the original premise of this thread, but it's mostly pointless. It is what it is and shall remain so until something else changes.