Zephyr Net

So let's see what you guys know about capitalism, and opinions about the pending Unocal deal.
First let me say from my research and some opinions floating around in the Petro Industry this deal WILL go through.
I as a big time capitalist and believer in our monetary system think this is a good thing.
It's like Manna from Heaven.
It's a benefit from years of work by many to drag the Chinese kicking and screaming into our system.

Let's try to put this into perspective before the nut cases blow it out of per portion.
Unocal all be it a player in the Global Petro Business is very small potatoes and represent less than 2% of our consumption in the U.S..
The Chinese want Unocal mostly for the Natural Gas holdings in Asia.
To put it bluntly Unocal is no Exxon or BP.

This is the PERFECT leverage we need to get some of the things out of the greedy little yellow bastards we want. So you want the Chinese to make adjustments to their currency ... well maybe not.
So you want them to put some pressure on the North Koreans ... umm, that's a possibility.

Lets see China has 8 liquid Natural Gas Facilities under construction up and down the coast, but have a little problem, where to get the natural gas?
And we have this little situation with North Korea.
Oh yea then lets not forget about the financing, we got these friends in Japan that would just love to help accommodate this deal and get more en roads into the Chinese banking community.

Well anybody else got some opinions on this deal.
Have the spin masters got you thinking the end of our way of life is at hand?
That gasoline prices here will sky rocket?

Whatever, and the sky is falling.
LOL

_________________


"cool beanz"
D. "FETCH" Jordan

I think it's the start of a bigger plan by the Chinese. I have to look at their actions along the coast, the missiles placed there against Taiwan, the under-the-table help they are giving the DPRK, and the latest bruhaha about no new US bonds not being bought by foreign countries. China holds a LOT of US debt and whilst this may be a bargaining chip, think of just how much momentum and weight the Chinese have behind them. If you get that rolling I don't think it'll be very easy to push and twist around. But then again I am no economist.

_________________
Centurian

I would like to add that we here almost NEED the cheap Chinese imports to sustain our standards of living here, we are so accustom to the cheap imports.
They do have control of a large portion of our debt.

So one way of looking at it might be we NEED each other. If the value of our dollar falls sharply it will impact them adversely.
Until they can find another market to dump their stuff on they must play ball with us.

There is one thing that does trouble me though, that is that there is no way in hell we or anybody else could buy a large Corp of theirs, regardless of how much money that might be offered.

"when we hang the capitalist, we will use a rope of their own making"
(maybe not a direct quote, but close ... Marx)

So great care a scrutiny must be used when dealing when the Chinese.
And eventually we must get some movement toward a more honest manipulation of their currency, but to shut them down completely might start a trade war.
I am NOT a fan of tariffs, on any level. But in a way they are hitting us and the rest of the world that deals with them with a hidden tariff by the way they manipulate their currency, that's why we need a third party to work out the monetary details, so as to have options when currency fluctuates.

_________________


"cool beanz"
D. "FETCH" Jordan