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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: t4texas who wrote (34642)8/22/2004 3:05:19 PM
From: Taikun   of 206093
 
Most new Chinese consumption is marginal consumption. The new car owner can park the car and go back to the bicycle if gasoline becomes too expensive. Most Asian and European nations have pretty good public transit systems where, in a pinch, one can commute by mass transit instead of the car-if gas gets costly. In Japan, for example, many companies reimburse workers' commuting costs up to the maximum roundtrip train fare per day, but there is no adjustment for driving a car and the higher costs associated with that. In Japan about half of the workforce commutes but train. The rail system is powered primarily by nuclear power. Granted, they still have oil exposure, but can still run the economy on expensive oil.

In the US one of the main reasons wind/solar power and some other alternative fuels cannot easily replace oil and gasoline is the way the transportation infrastucture has evolved to be oil/gas dependent.

Here, little gasoline-thus oil- consumption is marginal hence the likelihood of high gas prices triggering recessions.
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