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**wbeachcomber** · 09-22-2008, 04:10 AM

Originally posted by Darius871
Please elaborate. In the case of China they can only save so much, and you need to save to export. In fact, that's getting harder in China due to wage pressure.

Oil exporting is a little different because if the price of oil goes up so will the value of the exports. Their exports aren't constrained by their own economy, but by the price of oil and how much we consume. But if the price of oil goes too high then the US will go into a recession. That's a constraint itself.

09-22-2008, 04:10 AM	#5
wbeachcomber Join Date Oct 2005 Posts 385 Senior Member	Originally posted by Darius871 Please elaborate. In the case of China they can only save so much, and you need to save to export. In fact, that's getting harder in China due to wage pressure. Oil exporting is a little different because if the price of oil goes up so will the value of the exports. Their exports aren't constrained by their own economy, but by the price of oil and how much we consume. But if the price of oil goes too high then the US will go into a recession. That's a constraint itself.
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