Home > American Society, China, World Issues > Forbes Magzine : Blame China for Gas Price? Really?

Forbes Magzine : Blame China for Gas Price? Really?


When Forbes Magazine has writers like John Dobosz putting his name on their brand, there is a definite hint to the fact that the print media industry is hitting all time lows.

His article : Blame Iran And China For Rising Gas Prices : is the kind of “shock jock” news that you find on Fox News. The only problem is that since it is printed media and not video with voice, there is time to reflect on the words and to consider what he is really saying.

If Fox News was in written format, the idiotic nature of their statements would be self evident. In John Dobosz’s case his words show the lack of thought or logic that went into his piece. His own words speak out against his claims and in the end he just looks moronic.

His basic premise is that we need to blame Iran and China for high oil prices.

In his opening paragraph he states his basic evidence against Iran….

Iran’s Oil Ministry on Sunday announced the suspension of crude oil sales to companies from the U.K and France as the Islamic state responds to a European Union embargo set to take effect July 1. France’s Total and Britain’s BP had already ceased purchasing Iranian oil prior to the announcement, so the impact on supply and demand may be tiny.

Did you notice the last sentence? “so the impact on supply and demand may be tiny” Excuse me Mr. Dobosz but aren’t the oil prices supposed to be based on supply and demand? If the supply and demand is not changing, then why is the price going up???? Easy. America and Israel are threatening to start another Middle East war in 2012. For future oil deliveries this means upwards pressure on the speculation of the oil price at that time. Our threat of war is the reason why it is going up.

The set of proof against China being the reason for high gas prices according to Mr. Dobosz is …

Combined with a surprise decision on Saturday by the People’s Bank of China to reduce banks’ reserve requirements for the second time since November, however, Iran’s action helped to boost West Texas Intermediate crude oil above $105 per barrel in electronic trading Monday.

So how exactly does the reduction in reserve requirements for banks in China affect oil prices? Looking back in 2011, didn’t the China make a bunch of raises in the reserve requirements of banks? The Wall Street Journal reported on June 15, 2011, “By AARON BACK

BEIJING—China’s central bank raised the percentage of deposits that banks must hold in reserve for the sixth time this year, moving quickly to further damp lending after the latest inflation reading showed prices rising at the fastest pace since July 2008.”

So the lowering of the reserve requirements after 6 raises of the reserve requirements last year is a reason for high oil prices?

Lastly, Mr. Dobosz tries to label China with 1.3 billion people as an oil hog. Unfortunately in the same paragraph he notes that they will be the second largest consumer of oil, behind America with 400 million people. In fact he shows that China will be using half the oil of America.

China’s government forecasts total demand to rise 5% this year to 9.9 million barrels per day, making China the second thirstiest country for crude. U.S. demand is down 5.7% over the past year to 18.026 million barrels per day in January. With total global production of around 90 million barrels per day, the U.S. consumes 20% of available crude oil, while China buys about 12%.

The truth is that we have no one but ourselves to blame for high oil prices. We are constantly at war, and constantly feeding our addiction to oil. At the same time we are one of the slowest nations to adopt alternative energies.

The bottom line about Forbes is that they are losing market share so quickly that they are resorting to baseless news articles meant to inflame prejudice and create fear, as a last ditch effort to sell magazines. They are hiring people like John Dobosz, who is willing to write these kind of mindless articles.

Itia (Abroad)

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