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Post By
bd2999 
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Member Since: Sat May 17, 2008
In Reply To
Late Great Donald Blake 
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Member Since: Sat May 17, 2008
Posts: 7,517
Subj: Perhaps...
Posted: Wed Jun 22, 2022 at 03:42:06 pm EDT (Viewed 113 times)
Reply Subj: I think you've missed a key detail.
Posted: Wed Jun 22, 2022 at 03:25:04 pm EDT (Viewed 116 times)



    Quote:
    The government would buy back gas on mass not just to increase the stock pile.  They'd be buying it to sell it at an immediate and lower rate to undercutting oil company gouging.  It's a way of getting around the idea of price fixing directly.   Think of it like the idea of a public option but for gas.

    That's a relatively short term solution that would help.  Not fix, but abate.  And then invest in long term solutions as mentioned.

    LGDB

I do not see that in the Hill summary (I do not have the NYT subscription and cannot read the original article. A frustration I nearly always have anymore).

If I understand this approach directly then the government would buy oil on the world stage and then sell it at a loss?  That hardly seems practical for all materials that are impacted from inflationary pressures at the moment. 

Wouldn't also lead to increased costs of the item if scarcity is driven up in such a way through that kind of action. It may help the US but it would do nothing to stabilize markets and address the problem. In fact it may make them worse. Particularly if multiple governments employee it on any kind of scale. 

Perhaps for critical materials it is potentially useful but it does not seem like a good strategy unless there is more to it than that. 








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