China rations diesel. Truck drivers wait in line and then get 1/10th of a tank full.
More supply chain troubles in China, which the world was counting on for supplies.
https://www.breakinglatest.news/world/c ... -rationed/
Looking more and more like the 1970s.
"But a surge in the wholesale prices of gas and diesel, which have jumped almost 20 per cent over the past month, have led to widespread rationing in recent days, according to state media. Wholesale fuel prices now exceed government-set retail prices, piling financial pressure on refineries and petrol stations."
https://www.ft.com/content/f04d09d6-174 ... 16a1412764
Retail price control price is less than petrol station's cost. Does not take an expert economist to tell this is going to cause troubles.
China is acting like a Socialist country after all.
More companies are going to be rushing to switch to non-Chinese suppliers. Long term pain to China for these electricity and fuel price controls is going to be huge.
Something is deeply wrong in China. It could be that outside dollar investment into China was key for China's ability to buy resources. Many people now think that "China is not invest-able". If that investment stops/slow then maybe China does not have enough dollars. It may be a Ponzi scam that is collapsing.
During Japan's bubble there were many American's that seemed to think Japan's system was better. Over the last decade there has been the same sort of thing about China. It seems it may just be a big bubble and no real miracle after all.
Markets Can’t Ignore Exploding Trade Deficits Forever - Ep 745