Wednesday, November 14, 2007

Oil price rise

Uncommonly good analysis of the effects of the rise in oil prices on Asia, particularly Burma and China.  It is always officially forgotten how much of politics is connected to the suffering of the poor, as if we could stop them from doing anything about it by simply ignoring the problem. 

Denning indicates that the United States has been largely insulated from the effects of increased oil prices.  I wonder how long this will last.  The dollar fall/oil price rise (two sides of the same coin connected to Bush inattention to fundamental economic problems and the disastrous Iraq war) will soon result in Wal-mart having to raise the prices of its Chinese-made goods, making it difficult for American consumers to ignore.  The ‘red states’ are already dependent on cheap oil, as they rely on cheap air conditioning costs and long commuting in automobiles.  As oil rises, real estate prices in places far from ‘civilization’ will continue to drop (leading to even more foreclosures).  I sense hidden pressure on the overflight states (hidden in the sense that the MSM rarely mentions it), made even worse by the semi-secret massive drought that most of the United States is facing (the results of their conservative politicians failing to address the global warming issue).  If you enjoy Schadenfreude as much as I do, it is invigorating to watch the sloppy voting patterns of the American heartland start to come back and smack them in the face.