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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

Close to half the members of the US Senate have signed a letter to US President Barack Obama urging him to sell F-16C/D aircraft to Taiwan.

Obama has been putting off a decision on Taipei’s request to buy 66 of the advanced fighters for more than a year now and the letter is thought likely to push the issue onto the front burner.

Washington sources said the US Department of State was against the sale because it risked badly damaging already fragile relations with China, while the US Department of Defense is in favor because Taiwan’s military is in dire need of a boost.