Quote: What I never understood was why we drill in such dangerous places when the oil we get ends up the same price as oil from Saudi or any other source where less damage is likely? Does anyone really think BP was going to sell their oil to us cheaper? Let's use up all the other oil before we ruin our own back yard. Even Mr Kitty knows not to crap in his own bed. Of course, he doesn't get any under the table rewards for keeping his area clean......and he isn't constantly running for office, or trying to influence pea brained Tea Baggers...he's just a dumb cat.....sure, he is smarter than Sarah, but even my dumbest Squirrel is smarter than Sarah...he just can't see Russia from his nest...but he can read a lot better......and he doesn't have to write things down on his little paw. Reckon we have heard the last of her "Drill Baby Drill"? I wonder if she has even read about it yet...assuming she has now been taught to read?
Allow me to try to help.
You are a major consumer of the commodity called squirrels. Without squirrels your ability to conduct your life would be severely curtailed. There is another in this world who is equally desirous of squirrels. I am a major producer/keeper of squirrels who sells, primarily to you but has a small side business providing to your competition who is growing as a consumer.
You have the ability to provide your own squirrels but it would require you to trim back the woods around your country. Not enough to do the woods harm, (though there is some risk that relatively short term harm might occur from time to time), but sufficient to drive the squirrels into your back yard for your consumption. The problem is that trimming the woods would take ten to twenty years to accomplish and that period without squirrels would decimate your ability to conduct your life and there is no replacement for squirrels in the foreseeable future.
Your attitude is that my squirrels are relatively cheap and do the job. Why mess with your woods while you can take all my squirrels. But I have a growing customer for my squirrels. Growing so quickly that, with your attitude, I might feel that my best interests lie with my new customer. In that environment, everything you say and do will be seen in a less favorable light by me. One day in the relatively near future, my other customers may be able to sustain my standard of living without any assistance from you. I may take horrendous profit from you but I won't need you and if you chose not to pay the higher price for my squirrels then I won't suffer - but you will.
The problem comes when either your competitor is willing to out pay you or I decide to be bloody minded and cut you off. You will spend twenty years in the wasteland of a squirrel free world and all the costs to your life that entails.
Does that help to explain the complexities of international economics as a weapon. I hope so. Economics, like war, diplomacy, treaties etc. are just another weapon in any sovereign country's toolbox. The small can become mighty if they hold the key to the mighty's power.