Friday, November 2, 2007
China raises fuel prices 10%:WashPost,Nov.2,07
Page D8: "China's first fuel price increase in more than a year is providing relief to the nation's refiners, but analysts said it could lead to increases in other energy prices that could squeeze China's poorer residents. With the change, Chinese refiners will still lose money and that the government may need to increase fuel prices further. Unless crude oil prices fall to the low $80s,China would likely need to increase prices by another 15% to 20% in early 2008." My comment: As of November 2nd latest news,crude oil price is up to $95+ and the price in China would be increased during the course of time. Needless to say,America's consumers will have to pay higher prices for such inflationary trend leading to possible or even probable slow down(recession) of US economy around the end of 2007 or early 2008. The FED envisions such and cut the fund rate accordingly as the policy decision. Let us wait and witness the future course of events. Francis Shieh aka Xie Shihao on Nov.2nd at 9.06 p.m. As I see it,such is another common ground of Sino-American Economics or US-China relations apropos of the interwoven relationship of two nations on both sides of the Pacific in the 21st century.