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US Fed Cannot Solve Deflationary Crisis It Has Created

 

By John Richardson

ALL eyes will be on the precise detail of the statement the US Fed issues after its latest Federal Open Market Committee (FOMC) meeting, which takes place today and tomorrow (March 17-18).

Many analysts think that …

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China’s Polyolefins Recovery On Shaky Ground

By John Richardson

CHINA’S polyolefins markets were in a muddle last week as a result of resilient offer prices for imported material versus a fall in pricing for domestic cargoes.

Domestic polyethylene (PE) prices were largely softer, but local distributors …

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The Long Term Average Price Of Oil Is $30 A Barrel

By John Richardson

OIL and petrochemicals markets have behaved from mid-February until today as if the world is about to return to the way it was in the first half of last year.

Here is the thinking behind this behaviour:…

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How China Can Fix Its Housing Crisis

By John Richardson

THE above chart shows the affordability of real estate in China’s Tier 1 cities (its biggest cities) as of June 2013 compared with many of the world’s other “rich cities”.

Why the speech marks around “rich cities”? …

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China’s Real Estate Crisis Was Entirely Predictable

By John Richardson

AN investment bubble can only remain stable if you pump ever-more air into the bubble. If you don’t continue to do this, then the bubble is in severe danger of bursting.

The warning signs started flashing red …

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Be Very Careful Of the $60-70 Oil “New Normal”

By John Richardson

THERE is an argument being made that the recent stability in oil prices will continue as crude enters a “New Normal” of $60-70 a barrel.

This type of thinking seems to have had an effect on petrochemicals …

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India’s Budget: Going Beyond The 2% Who Own Shares

By John Richardson

ANYBODY who invests in the Indian stock market might well regard today as a buying opportunity ahead of tomorrow’s announcement of India’s latest budget.

Or, of course, it might be an opportunity to go short if you …

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“Bad Deflation” Set To Dominate Global Economy

By John Richardson

THERE has been a great deal of discussion lately about the differences between “good” and “bad deflation”.

Good deflation, we are told, includes the fall in oil prices that has put more money in the pockets of …

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China Peak Steel And Chemicals Demand May Have Arrived

By John Richardson

EVERYONE involved in the iron ore business must be very worried about the recent speech by the new chairman of the China Iron & Steel Association.

“Under the ‘new normal’ China’s iron and steel consumption has already …

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Please Plan Now For A Yuan Devaluation

By John Richardson

IF YOU haven’t already planned for the possibility of a substantial drop in the value of China’s Yuan then you have no more time to lose.

I suggest every chemicals company that finds itself in this situation …

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