China’s changing role as an oil consumer

Ah, are we waking up to the Ponzi in the East? The longer we believe China will save the world economy, the deeper the fall will be. I would argue that the mere fact that the oil price did not manage to climb above USD 100 despite the current situation is to be attributed to the economic malaise in China and it’s getting worse as much of the Chinese economy is akin to a war economy. The government spends massive amounts of cash on White Elephant projects just to keep people at work and keep factories chugging. They produce mountains of useless junk. Any one day they will have to stop. That will be a painful day for the unprepared. 

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