Darby
Epochal Historian
Yup. China.
And what, pray tell, is driving the Chinese economy? Oil. Not renewable energy. Investment in China persupposes a strong oil economy. No oil, no Chinese real estate market.
China is holding 1.7 trillion US dollars. There's only two things they can do with those dollars. They can buy oil or they can buy US imports. They can't use dollars internally. Problem is, of course, they are trying to develop their own modern industry and importing US goods undercuts their growth, US products are expensive by their standard and they did not escape the world economic meltdown. So they're stuck holding dollars that can only buy oil.
Oil is here to stay for at least another 150 years.
