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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


Police, fire department personnel and bystanders assist the injured in the aftermath of a bomb blast near the Boston Marathon finish line on Boylston Street in Boston, Massachusetts, on Monday.
Photo: EPA / Stuart Cahill, The Boston Herald

The FBI’s investigation into the bombings at the Boston Marathon was in full swing yesterday, with authorities serving a warrant on a suburban Boston home and appealing for any private video, audio and still images of the blasts that killed three people and wounded more than 140.

Officials said no one had claimed responsibility for the bombings on one of the city’s most famous civic holidays, Patriots’ Day, but the blasts that left the streets spattered with blood and glass raised fears of a terrorist attack.