China buys oil

[Mega]

http://www.bloomberg.com/apps/news?p...fHo&refer=home
Mike

[audrey_girl]

Re: China buys oil

http://www.bloomberg.com/apps/news?p...fHo&refer=home
Mike

thanks for being on the China watch here -

very much appreciate your posts

[Mega]

Re: China buys oil

http://www.youtube.com/watch?v=jyp2B...eature=related
Mike

[Slimprofits]

Re: China buys oil

mega what was in that article? the page is currently coming up empty on bloomberg.com

[Mega]

Re: China buys oil

Works ok now, it was China oil buying up oil in the middle east & building a MEGA oil refinery in China.
Mike

[TRake]

Re: China buys oil

http://www.youtube.com/watch?v=jyp2B...eature=related
Mike

Yeah, it seems that UK, US and EU are understood. I have some confusion around China, the Middle East and other Asian nations. It seems to me that China is saying something to the nature of, "We have had enough of being enslaved by the US and Europe, you can keep your T-bills and Gilts and we are washing our hands of you until you get your act together."

So, China moves forward independent of most other nations. Is that possible? Can they make friends with the Mid East to create sustainable economic growth and increase living standards to keep their people happy? I am curious to see how Obama's scheduled meeting this summer with China goes.

I wish I would have been interested in this when I was 20. At 31 today I am so far behind in preparation.

[allenjs]

Re: China buys oil

Yeah, it seems that UK, US and EU are understood. I have some confusion around China, the Middle East and other Asian nations. It seems to me that China is saying something to the nature of, "We have had enough of being enslaved by the US and Europe, you can keep your T-bills and Gilts and we are washing our hands of you until you get your act together."

I wish I would have been interested in this when I was 20. At 31 today I am so far behind in preparation.

Don't worry, this is the point when it all gets very interesting. :-)

China will try to protect their T-bill reserves from helicopter Ben as much as possible, but not in a way that significantly harms either country or jeopardizes the friendship. I believe they are stoic enough about the present, and confident enough about the future, that they will accept some significant devaluing of their reserves.

I don't think they see the current situation as slavery. They see the use of the printing press as demonstration of the weakness of the Americans, and proof that the next century belongs to China. Their moves in military and natural resources are simply the common-sense things that a budding world power would do.

IMO, the situation is very similar to the situation when America became the world economic superpower in 1880-1920, taking the reins from Britain and Europe. Just as the Americans maintained friendly relations with Britain and Europe, the Chinese will strongly prefer to maintain friendly relations with America. Since they see their ascent as all but inevitable, they are willing to endure pain awhile longer to ensure a smoother and friendlier transition. They will eventually demand greater fiscal restraint from America, and it will likely hurt, but I don't think it will be disastrous or even unfair.

Of course, all bets are off if either side does anything stupid or suicidal. It's likely, IMO, that reunification with Taiwan will be accomplished in this environment. But what if the Chinese leadership decides to use their military power to take revenge on Japan for the rape of Nanjing? This would cause the whole world to blow up, and could easily destroy the American economy. Conversely, if the CIA were to be caught red-handed trying to foster revolution or civil war within China -- or trying to spread Marxism or Opium addiction within China (for example; not that the west ever kept China down by spreading Marxism or Opium).

[charliebrown]

Re: China buys oil

bought my first chunk of DBC on Friday at 21 and change.
I will keep it on a short leash, but oil is starting too look like a play.

[vanvaley1]

Re: China buys oil

So, will the revenue gathered from this bonding be reinvested through the western bank system or the Chinese banking system?

[due_indigence]

Re: China buys oil

Don't worry, this is the point when it all gets very interesting. :-)

China will try to protect their T-bill reserves from helicopter Ben as much as possible, but not in a way that significantly harms either country or jeopardizes the friendship. I believe they are stoic enough about the present, and confident enough about the future, that they will accept some significant devaluing of their reserves.

I don't think they see the current situation as slavery. They see the use of the printing press as demonstration of the weakness of the Americans, and proof that the next century belongs to China. Their moves in military and natural resources are simply the common-sense things that a budding world power would do.

IMO, the situation is very similar to the situation when America became the world economic superpower in 1880-1920, taking the reins from Britain and Europe. Just as the Americans maintained friendly relations with Britain and Europe, the Chinese will strongly prefer to maintain friendly relations with America. Since they see their ascent as all but inevitable, they are willing to endure pain awhile longer to ensure a smoother and friendlier transition. They will eventually demand greater fiscal restraint from America, and it will likely hurt, but I don't think it will be disastrous or even unfair.

Of course, all bets are off if either side does anything stupid or suicidal. It's likely, IMO, that reunification with Taiwan will be accomplished in this environment. But what if the Chinese leadership decides to use their military power to take revenge on Japan for the rape of Nanjing? This would cause the whole world to blow up, and could easily destroy the American economy. Conversely, if the CIA were to be caught red-handed trying to foster revolution or civil war within China -- or trying to spread Marxism or Opium addiction within China (for example; not that the west ever kept China down by spreading Marxism or Opium).

Good anaylsis Allenjs. The direction of history seems clear. The long game belongs to China. While I feel the American debt factory financed by cheap Chinese export/labor had exploitative features, it ultimately reflected American weakness. The Chinese overproduction dilemma that Henry Liu has been elucidating over the past few months merely delays the date that the baton will be passed. But it doesn't alter the fact that the baton will pass. The Chinese are masters in the art of patience. Whereas we have become captive to the quick result. The difference is one of discipline and wisdom.

[bill]

Re: China buys oil

mega,
Im sure you made a kill on this one
http://uk.reuters.com/article/market...6?pageNumber=1

LONDON, May 6 (Reuters) - British oil explorer Heritage Oil (HOIL.L: Quote, Profile, Research) said on Wednesday it has discovered up to 4.2 billion barrels of oil in the Kurdish area of Iraq, adding to pressure on Baghdad and the autonomous region to unblock a legal impasse stalling oil projects.
Heritage said in a statement following the results of its first drilling on the Miran West field that it could contain 2.3 to 4.2 billion barrels of oil-in-place and have recoverable reserves of up to 3 billion barrels.
.
.
Analysts at Credit Suisse reiterated their view that Heritage would be a logical acquisition for one of the Chinese state oil companies, which in recent years have been snapping up energy assets across the globe, to fuel China's economy. (Additional reporting by Ahmed Rasheed in Baghdad; Editing by Greg Mahlich)

and
http://online.wsj.com/article/SB123961996141013261.html