Thread: The Total Decimation of the Dollar is Sending Everything

The ongoing total decimation of the dollar is sending everything that still has value through the roof

As China Raises Fuel Prices For Second Time in 2011, WTI Passes $111

Submitted by Tyler Durden
04/07/2011 23:49 -0400
12 comments

The ongoing total decimation of the dollar is sending everything that still has value through the roof. Case in point: WTI which just passed $111 for the first time since 2008. And with Brent waiting with open arms at $125 it is only a matter of time before gas prices in the US will make the teleprompter advise anyone who doesn't have Discount Window access to trade in their inline 4 for the "Wealth Effect." In the meantime, a centrally planned China was just forced to hike gas prices for only the second time in 2011 (lucky them): "April 7, China, Asia’s largest oil consumer, raised retail prices of gasoline and diesel for the second time this year, starting Thursday, as international crude oil prices continue rising, China Business News reported on Thursday. The benchmark retail price for gasoline will rise by RMB 500 a metric ton on April 7 and that for diesel will increase by RMB 400, the National Development and Reform Commission (NDRC), said on Wednesday. According to several energy information institutions, the retail price of 90# gasoline will rise by 5.63% to RMB 9,380 per tonne, and that of 0# diesel will gain 4.9% to RMB 8,530 per tonne, the paper said." Bottom line - pretty soon the entire WTI curve will be in backwardation.


And why China's CPI next month will be at least 2% higher, from Business China: http://en.21cbh.com/HTML/2011-4-7/0MMjMyXzIwOTg0Mg.html

April 7, China, Asia’s largest oil consumer, raised retail prices of gasoline and diesel for the second time this year, starting Thursday, as international crude oil prices continue rising, China Business News reported on Thursday.

The benchmark retail price for gasoline will rise by RMB 500 a metric ton on April 7 and that for diesel will increase by RMB 400, the National Development and Reform Commission (NDRC), said on Wednesday.

The cost of No. 3 jet fuel will gain by RMB 500 to RMB 6,840 a ton, according to China’s top economic agency.

Rising oil prices in global markets are the main factor behind the increase, industry insiders were cited as saying.

By 23:30 Beijing time on Wednesday, light sweet crude touched $ 109.15 a barrel on the New York Mercantile Exchange, a new high in this round of rebounding prices, the paper said.

International oil prices have accumulatively gained about 20% after China adjusted retail prices on Feb. 20, the first increase this year, the paper said.

According to several energy information institutions, the retail price of 90# gasoline will rise by 5.63% to RMB 9,380 per tonne, and that of 0# diesel will gain 4.9% to RMB 8,530 per tonne, the paper said.

China adopted an oil pricing mechanism at the start of 2009 which allows the NDRC to adjust retail fuel prices when international crude oil prices change by more than 4% over 22 straight working days.

As inflation intensifies, the NDRC has postponed the timing of the rise in prices since the central government unleashed a series of policies to combat inflation in 2010.

Requirements for price adjustment were satisfied after March 22, but considering peak travel during the Qing Ming holiday and mounting domestic inflation pressures, the timing of the price change was postponed to April 7, the paper said.

We would be remiss if we didn't point out the dollar again. Thank you Central Planners.



http://www.zerohedge.com/article/china- ... passes-111

i'm impressed with your keen eye on the economy ..... keep up the good work , i like almost all of the articles you post ..