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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (20412)	10/21/2004 11:21:35 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

notice that the prices are not cutting demand outright; just cutting "growth" in demand. thus the statement underscoring a prediction by the International Energy Agency that record-high international prices would curb demand for the fuel is not correct, since demand is still growing. but on a rate of change basis, a decline in the growth rate from 37% to 5.7% is pretty severe (even if 37% was a ridiculous growth rate to begin with). this shows that for China to keep to its targeted GDP growth (which is ipso facto an oil consumption growth target), it cannot afford to keep manipulating the RMB by buying US greenback toilet paper. this strikes me as very bad news for the dollar and USTs. i have long felt that China, with its real capital requirements, could not keep up the currency manipulation game as well as overcapitalized Japan.