High oil prices are destroying the whole basis of the market

 Although gasoline prices these days still at the stage of conjecture, but the pen has been plotting her husband, if petrol prices do rise to the level of 7 yuan a liter, I should give up the bike 2.5 emission car, instead take the subway to work it?
the same with me the whole idea of the Chinese people have many. When the high oil prices become a burden when you reduce the use of, or giving up is a realistic option, and for Those residents not to buy a car, climb up the oil prices will undoubtedly force them to abandon or delay the plan to purchase, no matter what point of view, car manufacturers are facing a serious situation of sluggish sales, especially for the accumulation of years of effort in our production capacity of ten million producing countries, this is particularly serious consequences.
If the majority of car manufacturers production capacity at a standstill, then supporting these OEM parts manufacturers have to look everywhere vegetables to eat, they are not suffering much easier than those OEMs, because, in the ecological chain, the whole plant is profitable exploitation by car, while supporting the car is the dishes go well with rice.
I also worried that if the above situation does happen, my family outside the row of cell wall Sin car shop, automotive beauty shops, half will choose to close.
we can even make more associations, the banking crisis because of these companies and car bad debt crisis in consumer loans surge in coal and oil power plants because of the high price of the huge losses (actually a loss has become a reality), the airlines can not afford the high oil prices continue to raise prices, passengers had to abandon travel plans, travel Attractions will become bleak business h..
former U.S. President Ronald Reagan once compared to inflation as years on behalf of the world to experience the power of its killing, and now the situation is similar, rapid rise in oil prices affected all industries, forcing the national economy into full recession.
the latest issue of , and falling house prices are declining performance.
situation around the world are in line .8% of the inflation rate has made China the pain of the immediate residents, but imagine that with this synchronization, the Russian period the level of inflation was 14%, Argentina 23%, 23% of Venezuela, Indonesia is expected to reach 12%, two-thirds of the world population is suffering from double-digit inflation rate, according to World Bank estimates 2008 global economic growth rate was 1.8%.
the seventies, when the advent of the energy crisis, national measures taken by the government that price controls and government subsidies, the central bank to raise rates, thinking that they can barely spend that the temporary price increase, but it did not, the price level not only did not decrease as expected, but makes the global economy into a sustained recession.
that time we rise and fall of the world economy, there is no perception, precisely because of this, A worrying situation is that we now also seems to repeat the mistakes of the seventies the world.
Hong Kong, subsidies in the Sichuan earthquake disaster area may exceed the amount of assistance. on refinery subsidies in fact subsidies to residents and businesses, the effect of this grant is to market prices created a false impression, so that domestic consumers and can not be perceived in a timely and effective changes in international oil prices, causing price distortions, which rely on nothing more than to curb consumer price transmission. distorted price formation mechanism can only make the situation worse. a bold idea should be immediately released open refined oil price controls and let the market decide the price of oil, of course, the risk of which is the short term may result in the circumstances described in the article at the beginning, felt that many businesses and residents can not afford, and substantially improve the consumer price one index, but the good news is, so that prices of refined oil and crude oil prices simultaneously, the demand for the suppression of the current will play a very good effect. like a pen husband as the calculation, if China and India, many people because refined oil give up the price increase or decrease in travel by car, then, global oil demand in certain period of time will be effectively controlled, oil prices should fall.
is for governments to raise prices of refined oil is to pay a huge cost , and London has already begun on the train truck drivers protest, they blocked traffic trucks over one thousand ways to express dissatisfaction; Italy, Belgium, Spain, Portugal, fishermen began an indefinite strike. In Indonesia, police and student demonstrators led to the outbreak of conflict, their aspirations seem to have only one, that is government subsidized prices.
seen purely from the perspective of the market and the economy and ways to deal with high oil prices conflict is difficult, in the case of no effective way to resolve thus, a terrible, all willing to accept the reality may be in and out, and that is recession and stagflation.
most pessimistic view is that the global economy has entered a recession irrevocably to the cycle , no matter what kind of means to deal with oil prices, countries can only be found in sub-optimal results, the results can not be optimal.
China's problems may be better, all optimistic about the long-term development of China's economy who will hold the view, however, in 2008 we are facing a complicated situation that we have to make some amendments to the situation of optimism. in the global economy into recession, under the situation that China probably has not been spared, a sudden increase in earthquake disaster difficult to avoid recession.
specific reaction stock market, although the Shanghai index has grown from 6124 points, the lowest down to around 3000, many people think that a huge decline in the investment value of the show. However, If high oil prices, represented by high prices led the economy into full recession, then the optimistic, expected to get little sense, and the face of declining corporate profit expectations, investors will be difficult to make a buy decisions, and, two years due to the share reform for the benefit of the size of non-JUFENG who will not miss any opportunity to profit from a rebound to understand the whole market may take a long time to restore confidence, in other words, our the basis of the market may be destroyed in advance all the problems of high oil prices.