Hi Jordan,

I agree with everything you say except one thing - the spending of (U.S. x ZZ) percent of wage on gas in China.
My PERCEPTION of China, as regards gasoline and cars, is that:
1) the state is the buyer of all oil/gas;
2) those with cars are ONLY the rich ones and their percentage of 'salary' is probably lower than it is in the U.S.

I doubt that what exists in U.S./Canada/Europe is even close to how it exists in China.

The main point I was trying to make was that China needs more OIL (not gas only) (to support all of the manufacturing that exists there) and so that has affected the cost of oil/gas IN THE REST OF THE WORLD. This increased demand in China was NOT created by brand new manufacturing being done in China, but rather by replacement manufacturing being done in China (formerly being done in U.S., Japan, Europe, etc). This has affected the price of oil across the world.
The net result is that other countries are not only losing jobs to China, but at the same time the cost of living in other countries is rising as a result!


Jim

>>Yes, ALL of the Chinese can be low wage earners and still they can afford higher priced oil. That's what COMMUNISM is all about. China happens to have so many people that labour is just another commodity like oil or copper or...
>
>Hi Jim,
>nobody can afford higher priced oil, but when supply of oil couldn't be rised and demand of gasoline rise this push up the price of gasoline for all of us. Nobody in the world, except oil producing countries is satisfied from that fact, but if you like to drive your car you should accept higher prices.
>
>For wealth nations is more easy to afford higher prices than low paid nations like China. Because you spend 5% of your salary for gasoline and increasing of prices with 10% will lead to sending of 5.6%.
>In China if you spent 30% of your salary for gasony tis will lead to spend of 35% the difference is very big.
>
>Most of the chinese say - these american with their big cars rise price of gasoline. They should stop to drive their cars which spend 20 liters/ 100 kilometers and should start to drive cars which consume 5 liters/100km like us. This will save a lot of resources and will fall down the price of oil.