Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Knighty Tin who wrote (37035)	9/13/2005 7:36:24 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

And I don't see any news mentioned that one of the main reasons for the gasoline shortage in China, started from Guangzhou and now spread out (somewhat) to Beijing, is due to the state control of the domestic gas price so that the oil producers in China exported as much as possible (unofficially usually<g> and some of them may even get some export rebate<g>) and that is the only way for them to lose a little less. This seems a sure way to control domestic consumption<g>. So the world should show some appreciation to China. Otherwise, the oil price would have been higher than what it has been<g> And the gas price in Guangzhou is only about 1/3 of HK's, so plenty of HKners come to Guangzhou for the gas. On top of this, there are plenty of smuggling oil (out of China) going on due to the high profit. Some analyst suggested that China should let the market decides the gas price, and uses the higher revenue (from the higher gas price) to subsidize the domestic taxi drivers, and farmers, and other low income people, which I think is a wonderful suggestion. And yes, it is a no brainer that China would not be that stupid to fill their reserve now at an all time high oil price