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The opposite, actually — people NEED Russia’s oil. They don’t have the option to stop buying it without a lot of pain. So Russia’s biggest money-fountain has st
by ketzo 4y ago
The opposite, actually — people NEED Russia’s oil. They don’t have the option to stop buying it without a lot of pain. So Russia’s biggest money-fountain has stayed on despite sanctions.
Meanwhile, China exports a lot of things that people don’t need. You can turn those off quicker.
Again — huge oversimplifications. But I think reasonably solid mental model.
- tablespoon 4y ago> Meanwhile, China exports a lot of things that people don’t need. You can turn those off quicker. It's not like that's all they export. They export a lot of essential things, and cutting them off would probably far more economically disruptive to their customers than to them. They're store shelves won't be empty, and given their political system they can probably deal with the fallout much more effectively. There are also a lot of alternative producers of oil, while there's no other advanced manufacturing giant on the scale of China that people can shift their orders to. It would make the COVID supply chain difficulties look like a joke.