China's economy

There are many forecasters painting a gloomy picture for China. If an economic turmoil hits China, it spells the end of the Communist Party. No way would the communist party let the country's economy collapse. China has one of the largest reserves in the world. The amount of capital required for infrastructure is huge. So it can spend it way out of the current crisis.

The USA never sits still when oil supply is threatened. So don't expect it to sit idle while the despot has a free run in Libya and goes about demolishing his oil fields in the east. The mad dog of ME won't remain the head of the nation for long. A lot of innocent civilians would have to be killed though before the UN instigates a joint effort to stop the massacre.

While people will desert the market, I am usually one of the few contrarians around if the price of oil stays up for longer. Buy oil stocks and buy gold stocks. But I hope the Libyans won't have to suffer for too long.