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The trade system has rules. The Americans are the ones making the lion's share of those rules, because they are the guy with the gun. And of course they make them such that tribute flows to America.

One of the most important of those rules is "the US can run a perpetual foreign deficit." That's a quite amazing privilege, and one afforded to nobody else in the American trade bloc.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Mar 29th, 2014 at 04:38:57 PM EST
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The American dominance of the global trade system does not have its roots in the US role as an oil exporter, but rather the US role as an economic and military powerhouse.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Sat Mar 29th, 2014 at 05:10:45 PM EST
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Jake talked about the US Navy (and not Texaco) keeking the sea lanes open. The analogy is that just like keeping the lanes open is a benefit to the power that keeps them open, setting prices as an oil exporter also has a benefit for the domestic industry.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Sun Mar 30th, 2014 at 06:15:29 AM EST
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