lanes, obviously, and then also where does china how does china factor in in responding to north korea, if at all? right. as you mentioned, north korea is probably the most heavily sanctioned country, so how do you sanction a country like this is something that becomes almost epidemic. in terms of framing north korea as a trhreat to national safety the north korean trading companies are doing more and more of their activities inside china and that is being routed to south korean ports. if we can work with the southeast asian countries to have more access to some of the commercial flows here and try to intercept and definitely try to intercept more of these cargos, i think there will be material impact in terms of the parts that are going to north korea that are eventually getting into the development of things like long-range missiles. you mentioned when we last
east and west, also going through the arabian sea and journey either west or east. there are also lanes that go to eastern africa. all of these areas are in the line of fire. cargos all have to move through the gulf of asia and the suez canal. nnch in the region is key. the impact for the businesses at least, when we get to the business prospects of east africa, it will happen with regards to the kenya ports and tanzania ports. industry experts say they lose more than 7 billion a year because of the piracy threat. the pirates get close in the dead of night to approach a ship like this one. they approach it. they look for one that moves slowly and is kind of low. they throw a rope with a hook or a ladder and climb up on to it.
higher. it s a sweet crude. when you take that much off the market, you re going to have reaction. oil prices dropping to $98 a barrel. saudi arabia going to try to ease the situation by adding to the supply. that s not sufficient to change things, or will it? they are able to, in fact we had reports last week they were already offering cargos out. it takes a while to adjust. two things. first, as i mentioned, libyan crude is a high quality crude. think of a champagne of crude oil, low sulfur, a lot of transportation fuels come out of it. the saudi arabia crude is not as good. there s a price to pay for that. number two, you ve got the long-term question of you re down to tighter spare capacity who is in control of the fields? it s not a linear substitution. how long before we see this impact the u.s. economy? it s difficult to say. i think you ve tacked on 20, 30 cents. i think there s a general feeling that $4, maybe this is
then just wait this administration out. and then where did this desire to avoid conflict come from? i think the president of the united states is angry at the wrong people. we are getting a lecture today on compromise after the party of no has said no for 24 months, said they wanted it to be his waterloo health care, said they wanted him to be a one-termer and then they laid down the ultimatum and then he says, okay, let s do and comes back and sells his base, saying, hey hey, i fought hard and then gets his back up at a press conference today? i ve never seen anything like this. has any president ever handled his base like this? if you want to win an election, if you want to be re-elected, you have to do at least something for your base to alienate your base across-the-board, that ain t good that can t be good. it is like the guy on the back of the dodge truck commercial, you know, he is the cargos off the back and says that can t be good. that is where the base is tonight that can
of the dodge truck commercial, you know, he is the cargos off the back and says that can t be good. that is where the base is tonight that can t be good it is just giving away to the top 2%. why? because they demanded it and i want to answer directly to the white house tonight. this bullet point that they are put ing out about 2 million people are going to be hurt, hold the phone. where the hell was the concern for the 5 million people who were 99ers that you ve just stood ominously silent? where s the fight for the 99ers? where s the fight for the long-term unemployed? now we come up with this two for one year, they get a two-year tax abatement they get a two-year stretch on the bush tax cuts and we are going to give up unemployment after we borrow $420 billion from the chinese? oh, going to do 13 months now of unemployment benefits for only 2 million people when there s how many millions thought that aren t getting any help? these are extraordinary times,