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If Chinese demand is decoupled from price influences it is not good news for available exports for the rest of the world. It also appears that the chinese understand that if they can shift demand for their products from export customers to internal customers they can also greatly decouple their economy from the risk of a global recession. This is similar to the history of industrialisation in America and it is likely that the Chinese understand this. If they can make their internal market more important than exports then a global recession might actually help their economy by reducing raw material and energy costs. However this will eventually lead to a negative trade balance (like you know who) and sometime down the road lead to the situation that the USA is in today. This, if it happened, would be well beyond my lifetime and of course is unlikely to happen in this nice text book way. In the short term it might mean that commodity and energy prices will remain higher than we might expect in the face of a global recession and, if the world economy holds together for some time yet, will sharpen the oil supply shortfall.
I wish we could afford the life we are living.
Yeah, Leanan's lead article sounds like a way for China to win by losing. The current game is for the Chinese government to exchange dollars from Chinese companies for more yuan, which creates an inflation threat. But if oil products are intentionally sold at a loss, the Chinese government can get rid of dollars, while keeping down the amount of yuan in the economy.
There's got to be a catch here besides the environmental mess it's causing. Maybe China will keep the gas cheap but introduce a ration. I'm far less likely to riot if you tell me I get to have 20 gallons for 10 bucks. That in turn incentivizes small cars and hybrids, which is good industrial policy. But it's deadly for pure electrics.
China is in the catbird seat. USA politicians are focused on getting the Yuan revalued upward. The Yuan will strengthen, on China's schedule and terms. Obviously, what USA politicians are pushing for is cheaper oil for China as the Yuan strengthens. I read a surprising stat the other day (unverified)- the claim is that only 20% of Chinese exports are going to the USA currently.
They are lining their oil supplies up quite nicely.
http://www.globalresearch.ca/index.php?context=va&aid=7120
Musahi: Interesting article. It almost reads like George Bush is a double agent, spending the last 7 years dreaming up ways to cripple the USA.
When China was opened to the West by Nixon, who was CIA director?
Prior to 911, when the Chinese forced down our spy plane, what happened and why?
George Bush is for the global elite and not America. Wall Steets goal - cheap oil to meet cheap labor and the CEOs reap the profit.
Trust no one from the East Coast! No Juliani or Clinton.
"Our enemies are innovative and resourceful, and so are we," Bush said. "They never stop thinking about new ways to harm our country and our people, and neither do we."
"And, you know, it'll take time to restore chaos and order - order out of chaos. But we will."
The last several days I've been mulling over a related idea. We often talk about PO as if TPTB are ignoring it. What if they understand it well and the actions of the last six years have been their response? Maybe their idea has been to impoverish the lower 80% of the population as it will be easier to maintain a small, rich population than a large not-so-rich population. Maybe I'm just over-thinking this.
We often talk about PO as if TPTB are ignoring it. What if they understand it well and the actions of the last six years have been their response?
There may not be "TPTB" - in the sense of all working together. In any ones life, there are many 'Powers' that exist and much of what they do is not what you'd consider helpful.
Tax law, the money system and social norms give a 'direction' to "the powers" (and in some cases, advantages that make one ponder about quid-quo-pros)
"We" can only guess.
I have tho't about this possibility, too. I suspect TPTB realize how dire the situation actually is (remember, Cheney's Energy Task Force meetings and the fact he refuses to make the info public). It does go a long way in explaining many of the actions for the last six years. I'm always slightly stunned when I see the George W. Bush quote from 2001 stating clearing what the people have to understand is we are running out of oil. He told us simply and clearly. Unfortunately, the public doesn't begin to believe this fact or understand the consequences.
From my time in the Orient, it seems to me the Chinese have never been particularly concerned with the environment.
I sailed down the Yangtze from Chongching to the Three Gorges Dam as it was filling up. I took this picture of a town that was about to be submerged. Try to imagine the amount of industrial toxins that were submerged along the length of the river.
Doesn't look they had building codes either!
2 years ago, IIRC, they were having trouble with floating garbage building up at the back of the dam, and the couple of specialized boats they built in anticipation for this had ALREADY broken down and were not repaired.
Foolishly guided mega project...again.
I have travelled China quite a bit. And have told my friends that China (if the news ever gets to the free world) will be the location of the largest CANCER CLUSTER EVER in the next 5-10-20 years.
I find it odd that the overhead wires in that picture had not been cut down for salvage. Very odd.
I was thinking the same thing...probably a lot of salvageable material that seems to be being left behind.