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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


Members of the National Food Safety Alliance voice their opposition to allowing US beef imports in Taiwan outside the legislature in Taipei yesterday.
Photo: Chu Pei-hsiung, Taipei Times

The American Institute in Taiwan (AIT) and the Ministry of Foreign Affairs yesterday denied that the AIT was “menacing” Taiwan, as the Democratic Progressive Party (DPP) put it, by tying a resumption of trade talks under the Trade and Investment Framework Agreement (TIFA) to the US beef issue.

Whether Taiwan would allow imports of US beef containing residues of the leanness-enhancing animal feed additive ractopamine was an issue affecting relations between Taiwan and the US, AIT spokesperson Christopher Kavanagh said.