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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

US Secretary of Health and Human Services Kathleen Sebelius said yesterday that no UN agency has the right to unilaterally determine Taiwan’s status. Sebelius’ remarks came amid ongoing controversy over Taiwan’s designation in the WHO.

“We have made it very clear to the WHO and I think the United States’ position is that no organization of the UN has a right to unilaterally determine the position of Taiwan,” Sebelius said on the sidelines of the World Health Assembly (WHA) in Geneva when asked by press about the matter. “It needs to be a resolution that includes China and Taiwan in a discussion and we would very much welcome that road forward.”