May

4

I don't know if anyone happened across this piece earlier in the day: "China's urgency to stockpile oil tells us 2 things"". Looking at it, I was struck by two things: If China were anticipating a geopolitical disruption to the oil markets, the easiest means by which it would anticipate such is if it were planning military action somewhere. The most obvious place to me would be some sort of play in the South China Sea. On the other hand, if there isn't some military standoff pushing up the price of oil, oil demand to sustain the current price is going to disappear once China's finished with its inventory build. It will be interesting to see what China does with the inventory build in the fall as the election here approaches.

Larry Williams writes:

Adding fuel to this fire…

The governor of the Virgin Islands is on his way to China to work with Sinopec to see about the possibility of reopening the refinery here in St. Croix which, at one time, was the third largest refinery in this hemisphere.

It's very upsetting to me that the United States does not see the future… is not, from what I can tell, interested in stockpiling energy resources.

China thinks so far ahead of us. I am leaving this morning for a month in China and will post comments about what I see there along the way. It is always frustrating for me to be there, to see the growth, the new buildings, the expansion of everything while nothing seems to be taking place in America.

If there was ever a monument to what deficit financing can do it certainly has been the expansion and growth of China from a nothing economy to probably soon the world's largest


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