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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

Several leaked cables from the American Institute in Taiwan (AIT) show that the US made “considerable effort” in negotiations leading to a secret memorandum of understanding (MOU) signed between China and the WHO in 2005, in which Taiwan was referred to as “Taiwan, China,” and repeatedly urged Taiwan not to make the text public.

Among thousands of cables from the AIT published by WikiLeaks on Aug. 30, at least four cables show a US role in crafting the 2005 agreement.

It supported the use of the term “Taiwan, China” and it wished this to be kept confidential.