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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

Democratic Progressive Party (DPP) Chairperson Tsai Ing-wen (蔡英文) yesterday invited President Ma Ying-jeou (馬英九) to initiate cross-party talks within one week on amending the Referendum Act (公民投票法) to include articles requiring that cross-strait political negotiations be subject to referendums.

Speaking at a press conference at DPP headquarters in Taipei, the DPP presidential candidate said cross-strait talks should not happen unless both sides approached the table without political preconditions. Any political discussion that is relevant toward the definition of a country must hold to “three musts” — must have sovereignty, must be democratic and must be peaceful — and be subjected to a nationwide referendum, she said.