10-13-2012, 04:01 AM
'Palm' pid='11134' datel Wrote:"Could be I missed something, but I would say to 3. well, repeal the law if you worry about business. 4. this is capitalism, competition is good. 5. let's keep things in perspective, even in the worst case scenario, I don't think ALL US exports to Russia are in danger, so we're talking fractions here." Sure IN THEORY that all works. But in reality I have serious doubts that it will. The US trade sanctions are deeply rooted in issues it will be hard change/accept. As far a competition/capitalism, it works as you say; on a level playing field. Go tell Catapillar that you have to anticipate the possibility of cutting your prices by possibly 7% just to be on a level playing field. Have you listened to what response that gets? I would guess Catapillar and others feel this is pretty challenging. On GDP; and what is US GDP growth running at right now? Any drop of significance sure doesn't help if you are growing at 1-1.5%. The US won't any time soon drop it's issues with Russia that affect tarrifs. All of this requires a bit of wait and see, but I don't see many standard theories in the world economy playing out normally these days. I'll gladly admit I was wrong should your theories play out for the most part. I think reality will be increasing tensions between the US and Russia/China and it will not play out well for the US and the EU. I don't see the US or others out there able the match a $10 billion loan to the likes of PNG.
Does the US need anything that PNG can provide?
China, Japan, Korea, et al are making business deals with PNG, which are presumably mutually beneficial.
VS