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To: CommanderCricket who wrote (102760)	6/13/2008 8:54:48 AM
From: elmatador	Read Replies (1) \| Respond to of 206089

"someone in China will buy a car and take over the driving" using subsidized gasoline, mind you... Furthermore, the recent surge in oil prices probably won’t affect China’s consumer prices because of generous government subsidies. The government can afford to subsidize the price of fuel and is likely to continue to do so, Mark Williams, an economist at Capital Economics Ltd., said in a recent report. “Even if international oil prices remained at their current levels, the total net subsidy bill for the year would probably amount to less than half of one percent of GDP,” Williams wrote in a June 5 report. “The costs of keeping prices down are still manageable given the strength of China’s state sector. Officials are wary of anything that could raise inflation expectations.”

To: CommanderCricket who wrote (102760)	6/13/2008 9:01:55 AM
From: elmatador	Respond to of 206089

OIl high. Transport high. Jobs back to US and Mexico. U.S. Factories Bring Jobs Home as Shipping Costs Bite, WSJ Says By David Altaner June 13 (Bloomberg) -- Some U.S. manufacturers are bringing production and jobs back to Mexico or the U.S. from Asia as shipping costs grow, the Wall Street Journal said. The trend, linked to rising oil prices, could slow the movement to outsource production to China or other low-cost countries, and reduce the amount of factory job losses in the U.S., the newspaper said. The costs of shipping a 40-foot container from Asia to the U.S. East Coast has tripled since 2000, and could double again as oil prices rise, the Journal said, citing Jeff Rubin, chief economist at Toronto-based CIBC World Markets. Changes will be limited because domestic shipments by train or truck face surcharges, and systems are already clogged, the newspaper said. Also, many of the suppliers who produce parts or who repair machines have declined or vanished, the Journal said. To contact the reporter on this story: David Altaner in London at daltaner@bloomberg.net

To: CommanderCricket who wrote (102760)	6/13/2008 9:44:42 AM
From: dvdw©	Read Replies (1) \| Respond to of 206089

Sorry commander but this is a puff piece; Every time someone drives less in this country to save gasoline, someone in China will buy a car and take over the driving. They wont be buying gas hog SUV's, they dont drive during the week as we do and they dont go as far when they do. the relationships are no where near 1 to 1 as this posts suggests. They have the money and a stronger currency. 10 million new cars will be sold in China this year. ? strong currency has nothing to do with it. "Auto sales are expected to exceed 10 million units this year, which would represent a full year sales growth of 14%,” Xinuha reported, citing China’s automobile manufacturers association." Starting from so low a base line, this rate of growth is not very impressive.And post acquisition driving habits are so different, as to not even be meaningful. Most Important Oil News This Past Week has Gone Unreported in U.S. (China Car Sales Up 17.4%) As has the demand decline in US gone unreported in the US, the transportation department stats on driving miles are not published with any frequency, so the data used to spin the bubble up, are absent counterbalancing information. This disconnect, accounts for the lag needed by mouthpieces, to keep the largess in motion. rationalizations abound, we both know that, bottom line the picture isnt static, and the dissimilarities in pattern behaviors dont correlate.

To: CommanderCricket who wrote (102760)	6/13/2008 10:34:02 AM
From: ChanceIs	Read Replies (1) \| Respond to of 206089

>>>China Car Sales Up 17.4%<<< Matt Simmons warned about this......five years ago??? Was it six??? Maybe even seven. I can't have too much sympathy for the US. Mine however is to search for economic opportunity. I have to figure that the dollar will continue to fall and with it the value of US debt. The investment banks will continue to get crushed despite the FEDs valiant but ignoble efforts to bail them out. Stay short the US financial institutions and buy Canadian hydrocarbons. I know I sound like a broken record, but I ask myself this question at least once a week and come u with the same answer.