No. of Recommendations: 1
...but it boils down to whether Iran or thee US's allies can hold their financial breaths longer.
I rolled some ideas around, on the Policy board. Lets see if I can word it so I don't get flamed here.
Most of the Gulf states have sizeable sovereign wealth funds. Seems they would have plenty of hang time, by liquidating positions held by the funds, to maintain domestic spending, to keep their Proles mollified. As you noted, there are rumblings that the UAE wants a US government handout. The UAE has significant investments in certain assets, that other holders of those assets may not want to see liquidated, as their own holdings may decline in value. So, volunteer the US taxpayers to protect those privately held assets.
Iran's funding of it's "allies", according to the net sifter, runs maybe $2B/year, or about 1% of the Iranian national budget. Defunding it's "allies" would not go far in replacing the $60+B/year in oil revenue.
...while the US is self-sufficient in most petroleum products, their domestic prices will rise increasing inflation.
Wouldn't that be zero sum, as far as a family budget is concerned? People put their money in the gas tank, instead of paying the exorbitant rates at a Disney theme park, as a for instance?
Steve
