You can buy $50 a barrel oil today. There's just one catch. It's in the PRC. The PRC is forcing a $20 per barrel domestic subsidy on fuel. It's completely unsustainable. There are gasoline shortages. Refiners are threatening the government. There are strong worries about civil unrest if fuel prices rise to market levels. There are strong worries about civil unrest if fuel shortages persist.
In short, it's a complete mess, unsustainable over the long run, and a good candidate for the reason which will eventually take down the PRC's ruling party. For those of us who remember President Carter, the gas lines and unhappy people are pretty much what we all expect but it's been 25 years and a lot of people don't remember the '70s as something they personally experienced. Now they can get cheap gas in the PRC along with long lines, closed stations, and very angry people. And to think, yesterday I listened to Michael Savage actually call for gasoline price controls.
God save us from idiots and worse.
Posted by TMLutas at September 2, 2005 03:17 PM