Congress makes a show of trying to balance the budget, even as the spending spigots remain open.
The Saudis had 1.5 million bpd of spare production capacity--oil spigots on standby--and it was less desirable heavy crude.
The burden of keeping the money spigots flowing falls on Eric Feldstein, 45, who became GMAC chairman in November 2002.
But Saudi Arabia and most other overseas producers are keeping the spigots open wide, so price-spiking shortages should not occur.
Moreover, companies boasting good credit still borrow when risk flows freely while less worthy borrowers obtain credit after underwriting spigots tighten.
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But when the Arabs closed the spigots again in 1973 U.S. production had peaked and dependency on imports had doubled to 15%.
Hot Springs National Park officials closed the valves to spigots at four public access points, where the 143-degree mineral water normally flows.
All this is not to say that private banks are about to turn on the monetary spigots and reclaim their dominant role in the money creation process.
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The other big worry is that at some point in the future the Fed will shut off the spigots, a move that would have big implications for bond investors.
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But the Saudis hold the whip hand in the oil market, thanks to their ability to increase production by as much as 2.5 million barrels a day--or cause a worldwide shortage by turning off the spigots.
We need a little more government now, so that we can mitigate the negative effects of the recession, but when the economy improves, then we can turn the governmental spigots back down to a gentler flow.
In addition, the Saudis hold the whip hand in the oil market because of their ability to increase production by as much as 2.5 million barrels a day--or cause a worldwide shortage by turning off the spigots.
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