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Asian Petchems Profits Could Test Historic Lows In 2018

By John Richardson

THE ASIAN steam cracker business has struggled to pass on higher oil prices as the above chart further underlines. As you can see, high-density polyethylene (LLDPE) injection grade spreads including selected co-products have slipped over the last …

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China Growth Slows On Collapse In Shadow Bank Financing

By John Richardson

YOU should print-off the above chart and stick it on your chemicals company boardroom wall. From fellow blogger Paul Hodges, it shows the collapse in credit issued via China’s shadow banking system.

It is the shadow banking …

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China’s “Minsky Moment” And The Global Economy

By John Richardson

HYMAN MINSKY was an American economist who focused his career on studying the causes of financial crises. He developed what he called a ‘financial instability hypothesis” which was based on the notion that long periods of stability …

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Bricklaying In Australia And Oil Prices: Important Similarities

By John Richardson

THE bricklayer came around to my house three years ago, quickly surveyed the extent of the job, drew a sharp breath, and said, “It’s going to cost you at least Aus$4,000.” And that was after a four-week …

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Climate Change: Taking Out An Insurance Policy

By John Richardson

WOULD you get on board a plane without taking out travel insurance to protect your family? Of course not, even though the chances of you being involved in a plane crash are one in 9 million.

And …

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The West Is Becoming “Cash Poor And Time Rich”

By John Richardson

Consumers in the West are moving from being ‘cash rich and time poor” to being “cash poor and time rich”.

The reason is that Western fertility rates have below replacement level (2.1 babies/woman) for 45 years since …

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US Consumers Can No Longer Rescue The Global Economy

By John Richardson

WE have gone beyond a major turning point in world history when many of the certainties we used to be able to depend on simply no longer apply.

Just about everyone now accepts that the old certainties …

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It’s Insane But Why Not? Oil Back at $100 By Christmas

By John Richardson

ALBERT Einstein is widely credited with saying this: “The definition of insanity is doing the same thing over and over again, but expecting different results”.  Who cares if it is either paraphrased or he didn’t even say …

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China’s Environment: Business As Usual Not An Option

By John Richardson

SONG Wei, an environmentalist from Hunan province, told the BBC in July:  “No more economic growth stained by blood. Under the new environment law, every factory has to be approved before it’s built. We’re putting an end …

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Rudderless Australia Drifts On

By John Richardson

THERE used to be two certainties in life that everyone in Australia could depend on. We all know that the first certainty was, and sadly still is, death. But the second certainty was China acting as the …

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