Monday, May 19, 2008

WHAT IF JAPAN SEES A DROP IN THE PRICE OF OIL?

What if the oil that is backing up in Iran the result of the sanctions on Iran, perhaps in combination with sharply lower demand in the USA? Then did Bush go to Saudi Arabia to coax them into producing even more oil to push Iran all the more? In recent days, the Saudis accused Iran of stirring the pot in Lebanon. There is no love lost between the Sunni's of Saudi Arabia and the Shiites of Iran. The people of Iran are suffering very high inflation rates just so Amadenijhad can make his nuclear bomb. The deal offered by the 5+1 includes access to low cost power grade nuclear fuel.

Last week, it was reported that Japan has become a petroleum product exporter! Japan has to import oil but its refineries now produce more products than the country needs. The flip flop that occurs at the mid cycle between Asia ex Japan and Japan is in the works. Stocks in developing nations are struggling just as Japan's economy is growing at the fastest pace in many years.

Japanese stocks should do well over the next couple of years.

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