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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (13839)	10/22/2004 12:14:35 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

China says surging oil prices have limited impact on economy [Gd Dan - Is there anyone anywhere on this planet that thinks rising oil prices have an impact? I am not talking about message boards I am talking about talking heads, foreign governments, or heads of treasuries or whatever anywhere on this planet. Someone tell me how oil doubling does not matter. Everyone and I mean EVERYONE is "closely monitoring" the "situation" What exactly are they monitoring and when do they determine what to do about it? I have done some thinking on this. It would seem that rising oil prices is indeed inflationary on energy producers but deflationary on net energy consumers. So.. some countries need to hike and some need to cut. Someone tell me please how any of this cures the imbalances that are developing. It seems to me that it adds to the total mess. mish] Friday, October 22, 2004 3:10:37 AM afxpress.com BEIJING (AFX) - Surging international oil prices have had only a limited impact on China's economy, the National Bureau of Statistics said (NBS) Zheng Jingping, a spokesperson for the NBS, said: "Oil prices increases have had some impact on both the global economy and China's economic growth but that impact is limited on China's part." A 10 usd per barrel price increase lasting for one year will lead to a 0.3-0.4 percentage-point increase in the country's consumer price index (CPI), Zheng said. However, such a calculation was based on output and consumption figures of 1997 Zheng said crude oil imports for the first nine months hit 90 mln tons or 23.6 bln usd and oil exports stood at 4.3 mln tons or one bln usd China produces 170 mln tons of crude oil and imports around 100 mln tons annually He said China will keep close watch on changes in the crude oil market and will need to take some precautionary steps as well should the situation turn much worse