Wednesday, September 8, 2010

China is now consuming and importing energy

I posted this because, China is consuming more energy resources and that has an affect on the energy prices in the global market place.  This will possibly lead to higher CPI as energy is a large component of the CPI and food production uses a lot of energy also. Again, this shows we probably won't deflation more likely stagflation in the long run.  Which increase mortgage rates.

Energy is politically sensitive for Beijing, which is trying to clean up the battered Chinese environment and rein in growing demand for imported oil and gas, which it sees as a strategic weakness.

Booming China passed the United States last year as the world's top energy consumer, according to the International Energy Agency -- a report that Beijing angrily rejected

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