Comments on: When Government Fails . . . Blame the Market!!! http://www.willwilkinson.net/flybottle/2005/09/26/when-government-fails-blame-the-market/ The Sweet Release of Reason Sat, 30 Aug 2008 02:20:44 +0000 http://wordpress.org/?v=2.6.1 By: Sigivald http://www.willwilkinson.net/flybottle/2005/09/26/when-government-fails-blame-the-market/#comment-4480 Sigivald Wed, 31 Dec 1969 16:00:00 +0000 http://www.willwilkinson.net/flybottle/?p=807#comment-4480 The lesson is that there's no benefit in stockpiling oil inventory. Well, no benefit in terms of keeping the long-term price of oil down, that is. The proper point of the Strategic Reserve is, well, strategic and global-economic; to keep the US running for long enough to get supplies going again if there's a sudden disruption in supply due to natural disaster (outside of the US, that is, is what I'm speaking of), war, or revolution. If, say, Iran started blockading the Gulf, the SPR would be very useful for keeping things going while the mess was straightened out (with a carrier group or two). The lesson is that there’s no benefit in stockpiling oil inventory.

Well, no benefit in terms of keeping the long-term price of oil down, that is.

The proper point of the Strategic Reserve is, well, strategic and global-economic; to keep the US running for long enough to get supplies going again if there’s a sudden disruption in supply due to natural disaster (outside of the US, that is, is what I’m speaking of), war, or revolution.

If, say, Iran started blockading the Gulf, the SPR would be very useful for keeping things going while the mess was straightened out (with a carrier group or two).

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