How the Oil Market Dies | Markets Are Dumb 8

I often talk about the oil price on this channel. That’s what I do with . But I don’t think I talk about what incredibly good news the death of the oil market is. For the environmentalists this is a bit of a mixed bag, but I think on balance very good. The whole “peak oil” thing has turned out to not be a problem. 30 years ago it was mostly the US, Japan and Europe that were intensively using other people’s petroleum resources. We’ve more than tripled the number of people, and probably more than tripled the amount of consumption. And we’ve all survived. That’s pretty damn cool. The downside of course is that we’re producing more and more carbon. Cheaper oil prices are not a good thing for those worried about global warming in the short term. Oil is cheaper, more of it gets consumed, and more carbon gets dumped into the atmosphere. But it can actually be a good thing in the long term.

Lower oil prices provide the same sort of good news to environmentalists that it does to geopolitics nerds. Bad people have less power. If oil is permanently cheaper, that provides less money to all the people who used to use oil wealth to steer the world. , lower oil prices are leading to a collapse in terrorism. It will also lead to a collapse in oil industry influence in the United States and other countries across the world. We can already see it happening. The fact that electric cars have been allowed to go this far is an indicator of how much power the oil industry has already lost. The days when oil execs could confidently march into the government’s most powerful positions almost certainly ended with Rex Tillerson. The Oil industry’s global warming skeptics are still churning out their reports, but they look laughable to everybody now, including the oil executives who pay for them. The oil industry’s decline in prestige will cede the climate change conversation to the scientists and their friends in the environmental lobby almost entirely. Good news all around!

If you’d like to earn my undying gratitude, please click w. Please do reach out to us through , , , or .

Video Transcript after the jump…

Continue reading

Why Amazon HQ2 Is Good For New York City | Markets Are Dumb 7

So what’s more important, the short-term pain of vulnerable populations in New York City or the long-term health of the city? Actually it’s a trick question. It’s not an either/or sort of question. New York City’s vulnerable populations are just as reliant on the success of the city as the rich and famous are. More so actually. NYC has been the prime example of the “Blue Model of Government” for quite some time. Public Sector Unions own the city (and the state). The largest public housing blocks in the country are a dominant feature of the architectural landscape. There’s a lot of mismanagement and waste in the education and social services sectors, but there’s also a lot of impressive work being done, that couldn’t be done elsewhere. New York’s mix of wealth and poverty is unique.

All of this, the good and the bad, is reliant on New York retaining its position as the country’s dominant economic hub. If the golden goose flies south, the place will fall apart. Sure, the rent would get cheaper, but a lot of the social services would just evaporate. I wasn’t actually joking when I compared NYC to Detroit, the US city that has lost over half of its population over the past fifty years. For those who think the comparison is ridiculous, I suggest you take a walk through the Bronx, a part of New York City that still hasn’t recovered from New York’s last economic collapse. may seem callous in privileging the interests of business over poor New Yorkers, but I don’t think that’s what I was doing at all. The interests are the same.

If you’d like to earn my undying gratitude, please click w. Please do reach out to us through , , , or .

Video Transcript after the jump…

Continue reading

Turkey and Indonesia Are Coming For Saudi Arabia

tries to present the relationships that Saudi Arabia has with Turkey and Indonesia. I don’t really do much of this on this channel, unless we’re talking about one of the world’s great rivalries, like Saudi Arabia vs. Iran. That’s too bad. Almost all of the videos on this channel deal with the way the United States relates to some other country. That’s only natural, as I am a US citizen, and all of us are living in the shadow of the world’s most powerful country to some extent. But I think a lot of valuable detail gets left out if we just focus on the relationships between the US and other countries. And that detail is only getting more important.

Power is flattening. The old imperial model, and the early US world system lent itself to a “hub and spoke” approach. Colonized or just weaker countries tended to have one all important relationship, and then lesser ones with neighbors or other countries with which it had some kind of historical connection. Nowadays more and more places are getting rich, and therefore their relationships are getting a lot more complex. Business and cultural ties can strengthen for a wide range of reasons. Everything’s getting a lot more interesting. I hope to do what does more often, and cover more relationships between countries outside of the context of the United States.

If you’d like to earn my undying gratitude, please click w. Please do reach out to us through , , , or .

Video Transcript after the jump…

Continue reading