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Strategies & Market Trends : New US Economy Policy
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From: Arthur Tang11/13/2006 3:11:41 AM
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Commodity exchanges are always looking for reasons to have shortages.

Shortages are the reasons for recession, when cash is depleted from inflation. So the economical policy is always price control by production surplus. If one item may have shortages, we use substitutions. In 1994 when coffee was in shortage, price went above $5/pound. Tee and colas were in large production surplus to substitute for coffee.

Since then coffee was never in short supply.

Oil wells were depleted after 100 years of pumping; and since 1993, water was substituted for petroleum. Alcohol and MTBE was used to drive cars in water solution. Since then we developed 46 formulations to have abundance of fuel for cars. 13 formulations are used in 13 districts. Diesel fuel too, has many formulations, including soy bean oil and water, which is also used in heating oil supply.

Presently, there are no commodity shortages.And we are not expecting any shortages in production capacities of any thing modern living standards demand.
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