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I'm sure that most of us have heard of OPEC, the Organization of Petroleum Exporting Countries. This group, cartel really, controls about 42% of global oil production on an annual basis and is massively influential in the price of oil and, with that, all oil based products worldwide. These include obvious things like gasoline and diesel and less obvious things ranging from plastics to cosmetics. It also dramatically affects things like shipping costs and their decisions directly affect all of our lives on a daily basis.
That said, did you know that the U.S., Canada, Australia and France control nearly 38% of global wheat exports? Or that the U.S. alone accounts for just over a third of the entire corn market globally? Moreover, did you know that almost every OPEC nation, most of the nations that we regard as threats and every single nation we list as a state sponsor of terrorism is a net agricultural importer that depends on foreign-grown food to feed their population?
With all this, why is it that the U.S., along with other western nations with whom we're allied, have never formed an Organization of Grain Exporting Countries and done to the rest of the world what OPEC's done to us with virtual impunity? After all, as much as we depend on them, we have real leverage; they can pump all the oil they want but they can't eat it.
That said, did you know that the U.S., Canada, Australia and France control nearly 38% of global wheat exports? Or that the U.S. alone accounts for just over a third of the entire corn market globally? Moreover, did you know that almost every OPEC nation, most of the nations that we regard as threats and every single nation we list as a state sponsor of terrorism is a net agricultural importer that depends on foreign-grown food to feed their population?
With all this, why is it that the U.S., along with other western nations with whom we're allied, have never formed an Organization of Grain Exporting Countries and done to the rest of the world what OPEC's done to us with virtual impunity? After all, as much as we depend on them, we have real leverage; they can pump all the oil they want but they can't eat it.
Economics
Politics
Posted 9 y ago
Responses: 6
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We would not have to withhold any food, we would only need to attach a premium excise on grains sent to those particular countries... Of course, such tactics have a way of coming back, with even higher premiums on the oil we get from them, leading to inflated prices for all.
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SSG Gerhard S.
Furthermore, I would add that withholding or charging artificially elevated prices for energy is JUST as critical as doing so for food. (Someone suggested immoral, I disagree with this notion.) The oil is theirs, to do, or to not do with, as they please. The same is true for our food. The point being that OPEC embargoed oil when Carter was on office.(I remember gas rationing). As prices began to rise other producers began to sell us oil... Namely Saddam Hussein in Iraq. He made a lot of money selling us his oil at a premium, but more importantly, this broke the OPEC embargo. Let them try again, as prices rise, we'll ramp up production here in the States. There is NOTHING faster than the market to resolve over-inflated delusions of self importance or irreplaceability.
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This is pretty short sighted as far as applied strategies go.
We shouldn't be punishing innocent families for corrupt politicians decisions.
We shouldn't be punishing innocent families for corrupt politicians decisions.
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1LT Aaron Barr A very bad idea manipulation of food supply and food prices an invitation to trade wars and reprisals. Remember the world economy is linked!
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