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[–] 11 points 1 month ago (5 children)

I don't even know what this means. If anyone here could explain, I'd appreciate it.

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  • [–] 10 points 1 month ago

    He's talking about interest rates. i is the interest, rate r* is risk, (y > y^*) is the "Performance gap" in the ecconomy SOH is Straits of Hormuz BEM is Bab El-Mandeb

    "lets see if a hike..." he is saying the american federal reserve raising interest rates wont open the strait or produce any physical oil.

    "you can't 25bp a chokepoint" is him saying that raising interests rates by .25% won't fix the supply shortage.

    The "r* isn't neutral" is him saying that the risk involved in borrowing money is determined by the axis of resistance.

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