[DoctorMichael]

"....price of gold is not critical to the economy...."

Agreed. While I own gold, I've never understood the 'gold bugs'.

"....but the price of oil is fundamental...."

I wonder when we can get the Caspian oil fields online? Certainly that clown Chavez in Venezuela hasn't helped the situation.

Also.........Officials have touted the advantages of outsourcing and the cheap labor involved, which gives WalMart all those cheap consumer products. HOWEVER, China, being a major manufacturer now NEEDS energy to produce those goods that we're outsourcing the manufacturing of. Of course, this comes with an increase in demand for oil (energy) from the Chi-coms to produce those goods. I wonder whether we're cutting our own throat in a round-about way here.

IMHO, also.........Additionally, the Chi-coms don't do much for the stabilization of the world anyways. Seems to me between being buddy-buddy with North Korea, secret Nuke-bomb part shipments to Pakistan, bullying of Taiwan, etc. that they are more trouble than their worth (apologies to Dianne Feinswine, Al Haig and Kissinger who have business ties there).

[RightWhale]

Caspian oil has proved out to about 10% of original hype. It wouldn't be prudent to assume vast new reservoirs of oil will be found in time to fuel China's growing need in the next decade. We should plan for maybe not shortages, but certainly increased cost of oil. The cost of oil could rise to a level that would cripple China's economic boom, and our own. Search on Peak Oil if you haven't already taken a look at this. It sounds highly eccentric at first, but check some of the links. It gets interesting.