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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (68156)8/27/2005 10:08:14 AM
From: energyplay  Read Replies (1) of 74559
 
China government using energy shortages to slow economy -

Yes, it makes sense -

It's faster on/off than monetary policy, does not have the leverage / deleverage effects that make it hard to know how much effect any specific move will have. Too much or too little.

It is also harder to get around. Cut off money from banks in China, speculators just get cheap money from Japan, maybe oil rich Gulf states, etc.

Less oil for diesel engines means they don't run as much, period.

*******

Some buildings are so large that heat and evaporation on side and cooling on the other side causes consdensation.
These building are said to "make their own weather"

China's resource requirements are so large that they effectively make their own weather for commodity prices.

Okay , maybe a slight exaggeration, but the effect is still large.
So I expect China to to make some effort to guide demand so that they get a price they like.
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