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My perspective is that this crisis is a purchasing power transfer from the OECD to the so called emergent economies.

If economic growth does not resume promptly in the OECD, it will be the increasing demand from the emergent economies to hit the supply wall this time.

Vencit omnia veritas.

by Luis de Sousa (luis[dot]a[dot]de[dot]sousa[at]gmail[dot]com) on Tue Sep 28th, 2010 at 05:57:54 AM EST
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The developing economies will out-bid us for oil, because (as has been demonstrated in the last couple of years) we can actually reduce our oil use in a discretionary way. At over a euro a litre, people are actively strategising to reduce their fuel use (and this is a good thing).

In developing economies, the rising cost of fuel is easy to pass on, so easier to absorb, even though the cost relative to incomes is actually higher.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Tue Sep 28th, 2010 at 09:51:13 AM EST
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