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Diaxde Volunteers

$100,000 per Barrel Oil

Please note that this is only an interesting thought experiment to illustrate the huge potential for oil’s price escalation.

Assumptions:

  1. Every percentage change of supply (while holding demand constant) or demand (while holding supply constant) results in roughly a 10 to 30 percent change in price. I heard that this tends to be the experience of long time commodities traders. Citation welcomed. But given that both the price elasticity of demand and supply for oil is very inelastic, this assumption sounds reasonable.

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When USSR Disintegration Meets Japan's Lost Decade

In one word – China.

The recent international media's reporting on suicides and labor unrest at the 400,000 employee Foxconn factory near Shenzhen got me thinking. Here are some gathered notes and musings:

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Newsflash

Many small and medium enterprises, as well as small hospitals, have said that President Ma Ying-jeou’s (馬英九) administration is discouraging them from supporting Democratic Progressive Party (DPP) candidates by threatening them with tax audits, DPP caucus secretary-general Wong Chin-chu (翁金珠) said on Sunday.

The Ma administration is fomenting another era of political terror, Wong said, adding that a number of hospitals had asked DPP representatives to ask on their behalf about certain taxation items they felt are unreasonable.

However, those inquiries resulted in even heavier taxation, Wong said.