On March 23, 2006, the Board of Governors of the Federal Reserve System ceased publication of the M3 monetary aggregate.
I agree that China is a big reason, but we can't force China to stop consuming oil, so what's our choice but to start conserving here? We're not going to tell China to stop expanding their economy.
If this is sustained, we're in for a very long summer.
China's new demand coupled with India's growing demand are the main reason for the rise in oil. The real question is who's economy can withstand these price increases? America, Europe, Japan, China, India, et.al. My bet is that America with the most diversified economy is in better shape to weather the sustained high oil costs compared with the rest of the world. China and India are especially sensitive to oil costs due to their export manufacturing economy. Europe really doesn't matter since neither their economy or demand for oil has changed much. My call is this is really a Mexican stand off between the major economies. My bet is that China and India's economies will blink before us, causing a fall in demand and price.
On March 23, 2006, the Board of Governors of the Federal Reserve System ceased publication of the M3 monetary aggregate.