My logic goes this way, Chris...

Virtually all of the increased demand by China is related to the manufacturing moved to there.
That manufacturing pays low low wages, giving them tons of 'room' to pay extra for oil (i.e. for the commodities they need) is the logic.

It is also likely (but pure speculation on my part) that gasoline prices, for car, is subsidized by the state, keeping it lower priced for that purpose. After all it is the "in crowd" who have cars and use them.

I think it fits rather nicely, don't you.

By the way, other commodities prices are also well increased, likely for the same reason. All of which only adds to the costs of manufacturing HERE, accelerating the move to off shore.

And, statistically, it all LOOKS like increased productivity here... more money being made and fewer people (of the resident here variety) needed to make that money!

Jim

>While the link between the price of gas and it's relation to the booming Chinese economy and U.S. outsourcing there is interesting and one I had not thought of before, I don't see how you can think that the Chinese can afford to pay more based on vastly lower wages.
>
>>CNN recently has been harping about the record pricing for gas in the U.S. It's the same here too.
>>
>>In enumerating the causes, one that is mentioned is the hugely increased demand for oil by CHINA. And of course supply/demand is the name of the game.
>>
>>So here we have an indirect consequence of outsourcing - the increased cost of commodities like oil on our own soil.
>>With all of the U.S., Canadian, Japanese and European manufacturing moving to China they naturally need more oil. While we should need less as a consequence is true, that doesn't really matter. This is because the price is NOT based on how much you need. Rather, it is based on 'bidding' by those who do need it.
>>Now China, of course, with its VASTLY LOW WAGES can afford to bid more. Thus we all have to pay more to get what we need, whatever the amount.
>>
>>Globalization is such a fine thing... corporations get richer and richer while people lose their jobs and get poorer and poorer whether with job or not.
>>
>>By the way, it would be interesting to see how the government tallies the "inflation rate". In Canada at least it is always quoted in the 1%-2% range annualized yet most everything I buy costs 5%-50% more from purchase to purchase (except for cumputer-related stuff).
>>
>>Doomer