Oil prices have gone up, continually reaching new highs, and one reason is China. China’s incredible economic growth is fueling demands for items we take for granted, such as cars. There are 1,300,000,000+ people in China, and they want cars, they want stuff, stuff we take for granted. They want to drive, and they have a big country. With 20% increases in oil demand quarter over quarter, what do you think is going to happen to the price of oil?
Yes, the price of oil will be bid up, though it will affect their economy also, as they are becoming as dependant on oil imports as the United States. Fortunately, they do not have the restrictions on using their natural resources that we have placed on ourselves, or the problem might be even worse. Do think when we do not allow drilling for our natural resources it does not cost us, because it does, and it will, all so we can listen to some fearful soul who is against a hole in the ground? Please.
So, their economy is growing. They are building rapidly, including massive government projects. Guess what, they need cement. Lots and lots of cement, an item they import, as do we. The price of cement has gone up substantially, adding as much as $7,000 to $10,000 to the cost of a new home in some areas of the US. Is China’s growth hurting us? Yes.
We buy billions of dollars of Chinese goods every year, and that will not stop. We have long accounted for around 30% of their exports, their largest customer, we are. As long as they produce items cheaper than we can, it should not stop, but there is still a recipe for disaster brewing. We are fueling their economy. Yes, we are helping our competition grow. All fine, except we are sinking our ship at the same time.
The real problem is us. Even though it has been played down year after year, administration after administration, our government is too big, growing at an unsustainable rate, with no slowdown in sight. With the growing government we cannot afford, comes the cost, the trillions in national debt that we continually say does not matter, but it does and it will, and there will be a lot of people out there who could say “I told you so,” but hey “My program really helps.” Yeah, sure.
Who do those who want to be fiscally conservative vote for? Good question. Does it really make a difference? Perhaps a third party, who will not be elected?
Let us not forget the fact that old China, the one that wants to war on an old-fashioned soldiered front, still exists.
Beware of China. No, beware of what we are doing, or not doing. But hey, in a culture of “Just give me something,” what do you think will eventually happen?