Wednesday, March 09, 2005
The China Syndrome
Smart money says gasoline prices will skyrocket this (non-election year) summer. Why? CHINA:
Now our oil addiction has given both China AND the Saudis a hammer lock on us. And China holds all that US debt, too. I wonder which one will use their leverage first?
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Chinese oil demand will grow by 33 percent more than previously forecast this year, the statistics arm of the U.S. Department of Energy said Tuesday, because the expected drop in demand for fuel to run power generators hasn't materialized.
"That was the worst-case scenario for oil prices," said Phil Flynn, analyst at Alaron Trading Corp. in Chicago. "The great hope was that China demand was going to trail off."
Source: Washington Post Oil Futures Trade Briefly Above $55 Per Barrel Mar 8, 2005
Now our oil addiction has given both China AND the Saudis a hammer lock on us. And China holds all that US debt, too. I wonder which one will use their leverage first?
