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China’s Crude oil import to 55% December 25, 2010

Posted by hslu in China, Economics, Energy, Global Affair.
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Last year’s figure was 53%.

And in a decade or so as China’s domestic oil productions decline and as more Chinese purchasing cars for personal use, the figure will approach 70%, the amount of crude oil imported by the United States now.

The competition for reliable crude oil supply between these two countries has no end in sight.

I, however, think the United States has an disadvantage here:

Although many oil rich nations, such as Iran, Iraq and Saudi Arabia, like American dollars, they hate America and Americans.

The Chinese pay them in US dollars too. In a few years, these countries may demand payment in Euros rather than in US dollars.

Who knows, they may even take Renminbi instead of US dollars in ten to 15 years.


What can the Fed do? Not much! August 11, 2010

Posted by hslu in Economics, Obama, Politics, stocks.
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After sleeping on Bernanke’s comment over night, the stock market tanked today.

People  on Wall Street and main streets asked “What can Bernanke do? ”

I think “Not much.”

He has bought $1.2 trillion of MBS and $300 billion government debt but people are not rushing back to the housing market to take advantages of 50-year low interest rates. People who wanted to buy a house have already done so and took $8,000 to the bank thanks to Obama. People who wanted to buy a car has already traded in their old ones and drove their new car to deposit the $4,000 government check to their banks. Short term interest rate is not too far from 0% and long tern rates are making new lows almost every day.

Obama has kept part of his stimulus money for 2012 in time for his re-election while letting the economy suffer. In the mean time, Obama and the Democrats have borrowed money from our children and grand children to keep the unemployment checks going to the jobless without cutting government spending. It appears to me that jobless rate is fixing to go up in the next couple of months because

  • China slowing down
  • Euro zone in tightening mode
  • Housing market continues to suffer despite low interest rates and,
  • US consumers have turned to savers

Since Obama hasn’t rested except taking a few vacations here and there, the revival of the US economy is rested completely on Bernanke’s shoulders.

But, it pains me to remind you that Bernanke has run out of silver bullets.

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