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

To: ild who wrote (58512)	4/17/2006 8:29:26 PM
From: bond_bubble	Read Replies (1) \| Respond to of 110194

First: China consumes less commodity than the world as a whole. Hence, we should consider the world GDP growth rather than China's GDP. This is a crude approximation. Second: If there is peak oil, it does not mean we have to pay arm and legs for gas. we can find alternatives. It is just that it takes time to adjust. The unfortunate thing is that, speculation does not give you enough time to adjust!! If the speculation was say 1%, that translates to about 1 mbpd - that is just about the spare capacity left - and hence you are having price spikes. I'm sure, couple of years after the bust, we are going to see plenty of oil floating around and OPEC cutting production etc. That is my opinion and we will have to wait to see the results...