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Doesn't petro-state imply heavy economic dependence on energy sources for government tax revenue? I don't think that's the case in America and if it were we'd s
by atlasunshrugged 5y ago
Doesn't petro-state imply heavy economic dependence on energy sources for government tax revenue? I don't think that's the case in America and if it were we'd see far more federal involvement in the sector even with state run companies and far fewer tax breaks for the industry.
- tesserac7 5y agoIt's an interesting question. Saudi Arabia alone owns at least USD100bn of US Treasury debt (before custodial holdings via tax havens) [0]. Other Petro states own more The petrodollar system is based on international trade in oil being denominated in USD. This finances the US deficit (in lieu of taxes) when oil exporters use dollar revenues to buy Treasuries Not a traditional Petro state... Concepts like fiscal breakeven prices aren't in play. But some shades of gray perhaps [0] https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt https://ticdata.treasury.gov/resource-center/data-chart-cent...