Suppose for the moment that the US goverment (or any other Gov) decides that Oil prices will rise drastically in the near future due to diminishing oil production, political instability, and increasing world wide market demand. This scenario could play out that inflation skyrockets, people can’t pay their bills, consumer economy collapes. Massive layoffs, general economic mayhem. What steps would it be sensible (as the goverment, theoretically having the peoples best interest in mind), to take? In the short term and in the long term.
Let me rephrase your question into something a bit less confusing:
“Facing an imminent and drastic rise in oil prices, what steps might a government take to minimize both social and economic disruption to their own citizens?”
Let’s see… here’s some things that a government could do:
[ul]
[li]Set up sweetheart deals with oil producing countries to get preferential pricing[/li][li]Outright invade oil producing regions[/li][li]Create tax structures that encourage less fuel use and penalize excessive fuel use[/li][li]Buy lots of oil futures at the current price or subsidize the buying of oil futures.[/li][/ul]
I’m sure there are more, but these came to mind real quick.
Excellent rephrasing, thank you.
So China is doing item #1, the US could be charged with doing #2, Europe is doing #3, some one may or may not being doing #4, I would’nt have a clue.