In theory, this could hurt us, but...
Click here: Oil Prices Rise Amid Signs of OPEC Cuts - New York Times
A couple of rules about cartels, and non-cartel, commodity producers.
1) Most every member of a cartel regularly cheats, in order to maximize profits.
2) When prices go up, new starts are encouraged, ultimately bringing prices down.
3) Non-Members of the cartel clean up. The Norwegians (the Aryan Arabs as they are called) are not members of OPEC and can fill in some of the decreased production.
Cartels can work --- for a while...
Ben
A couple of rules about cartels, and non-cartel, commodity producers.
1) Most every member of a cartel regularly cheats, in order to maximize profits.
2) When prices go up, new starts are encouraged, ultimately bringing prices down.
3) Non-Members of the cartel clean up. The Norwegians (the Aryan Arabs as they are called) are not members of OPEC and can fill in some of the decreased production.
Cartels can work --- for a while...
Ben
posted by Ben Wattenberg at 11:35 AM
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