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That doesn't make economic sense. That $250B isn't being vaporized: it's going to foreign consumers who are going to spend some fraction of it buying imported goods. Your goods are likely to be more competitive if an extra $50B worth of energy costs weren't spent making them. This is basic comparative advantage stuff.


Actually the $250Bn never existed - you printed the dollars and gave the Saudis pieces of paper for the oil.

They essentially loaned you the oil - and if they ask fro the money back you can just democratize them.




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