Re: How to beat China

Henry J Cobb wrote:
Now, if only there was some country with a vast fleet with bases all along China's oil supply lines. Surely China would be reluctant to get into a serious argument with that country.

http://www.economist.com/world/asia/displaystory.cfm?story_id=10184640
EFFORTS to cushion China's citizens from rising oil prices are in disarray. Low government-controlled prices have led to a fuel-supply crisis in many parts of the country. Rationing, long queues, bad tempers and violence have become commonplace at filling stations. Fears of higher inflation are preventing a cure.

-HJC

The Chinese are not the first country to find that price controls
causes shortages. The international price of oil is outside the
control of the Chinese Government. If the retail price is half
the honest price then the refineries can only afford to buy half
the crude oil required. This results in shortages.

The cure is simple. Repeal the price (out of) controls. Shoot
the saboteurs who ran them and blow up their buildings. The
replacement is honesty - honesty does not require policemen, bribes
or bureaucracy.

External inflation is genuine and has to burnt off against the
growth rate of the country. International experience has shown
a small increase in interest rates, a reduction in the money supply
and reduction in government spending minimise the price increases.
These acts of duty to country are frequently not performed because
they are unpopular with powerful people.

Andrew Swallow
.

Relevant Pages

  • Re: How are oil prices set? (Pls. answer my dumb questions) -- basics requested
    ... that price differences between "Brent, WTI, and the Opec basket" are ... sought after "oil" that is produced by many countries and many ... companies within each country. ... "Supply and demand" is a vague general principle. ...
    (sci.econ)
  • Re: Our Best Wishes
    ... >>>You might recall it was the Democrats who fiddled with the energy bill, ... > farms being built by big oil. ... > Any commodity in demand gets a good price. ... > country that believes in government monopolies. ...
    (rec.outdoors.rv-travel)
  • Re: Can this fucking idiot McCain read a single fucking thing not on a cue card?
    ... American hating bitch reek havoc on this country. ... All the Democrats have done is increased unemployment and gas prices. ... Most of the increase in price of oil is due to the drop in value of the ...
    (alt.fan.howard-stern)
  • Re: Clinton: OPEC can no longer be a cartel
    ... Stop buying their oil? ... leading this country toward energy independence. ... to us at the price that we, not they, think is right. ... works in San Fran and lives across the bay. ...
    (soc.retirement)
  • Re: Cheap oil forever!
    ... $14.00 per barrel ... "since the early 1970s, real oil prices have risen" ... >I did not say the price rise since then had been steady, ... rent seeking by those OPEC fellows but rising cost of getting the ...
    (sci.econ)