Shop Wal Mart... China, Oil, & Superpowers

So recently I was over in Nottingham, UK, visiting my mentor. We cut through a grocery store on our way through to eat at a small pastry shop.

He said that grocery store used to be his own little hidden gem, up until Wal Mart bought it. He no longer shops there.

He believes that at the end of the day eventually Wal Mart, and all the efficiencies it brings, will end up killing the US, one community at a time. Value is created in large part based on where people place it.

The one thing that might screw Wal Mart is the rising costs of oil and heating looming trade wars between China and the US.

Recently the Chinese Bid for Unocal.

From that article:

Economic growth has continued at a healthy pace, while consumer price inflation has been tame for items other than food and energy.

I always find it fascinating how economists pull out whatever items are increasing in price to say inflation is not a problem.

But the economy is not a stable as some believe. I mean, after all, there has to be some reason the president is campaigning nationwide to fuck millions of people out of their retirements. At the same time the consolidation of wealth does not balance the country any further because companies like Wal Mart are all about slashing costs and paying the minimum possible.

As our government gives more power to corporations we may soon find that capitalism crosses borders, and is soon crushed by communism 2.0. The bid to control oil companies signifies much more than owning a company, it is about controlling the most limited and needed resource.

On a flight yesterday I sat next to an oil purity tester who stated he believed that the oil supply was not necissarily the problem, but that it would cost increasing amounts to get at, and that we would be in a world of hurt if we did not start making more refineries soon.

With China being behind the curve on the refineries front it makes sense that they want to own oil contracts and companies with good refinery technologies.

Posted at June 26, 2005 12:47 PM