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View Diary: Abbreviated Pundit Roundup: Big Bird Edition (168 comments)

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  •  "Reinsourcing" is happening. (7+ / 0-)

    Many domestic companies are finding out that Chinese products are unreliably built, their plans are usually stolen and made into knockoff products, Chinese labor costs are becoming higher, innovation that happens on the factory floor is lost, and 8,000 mile supply lines can be easily disrupted by natural or other disasters, which may be more likely on a warming planet. Oh, and fuel costs aren't going to stay low forever.

    Government just needs to encourage the trend.

    Repubs started up the car, hit the throttle and sent it over the cliff, and now they're complaining that the black guy hasn't fixed it fast enough.

    by Bush Bites on Fri Oct 05, 2012 at 05:26:48 AM PDT

    [ Parent ]

    •  Re: oil prices not staying low forever (1+ / 0-)
      Recommended by:
      One Opinion

      I have posted this bit in the past week a couple of times:

      Saudi Arabia's coming oil and fiscal challenge

      which includes this sobering bit of analysis:

      After the benign decade ahead, unless the current spending and oil trends are changed, the government faces a very different environment:

      • Domestic consumption of oil, now sold locally for an average of around $10 per barrel, will reach 6.5 million barrels per day in 2030, exceeding oil export volumes.

      • We do not expect total Saudi oil production to rise above 11.5 million barrels per day by 2030.

      • Even with a projected slowdown in growth of government spending, the breakeven price for oil will be over $320 per barrel in 2030.

      • The government will be running budget deficits from 2014, which become substantial by the 2020s. By 2030, foreign assets will be drawn down to minimal levels and debt will be rising rapidly.

      This only one analyst's perspective, but I see nothing outside the realm of probability here. Mexico is rapidly approaching the point where they will not be a net crude exporter, and long before the Saudi's start consuming more crude than they export, global crude at $150/bbl will be considered "good news."

      When you are right you cannot be too radical; when you are wrong, you cannot be too conservative. --Martin Luther King Jr.

      by Egalitare on Fri Oct 05, 2012 at 06:09:45 AM PDT

      [ Parent ]

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