And it isn't good for China. China's President Hu Jintao is going to Russia to try to get an energy deal with them. China has a bustling economy right now, and they need energy to feed that. There are many problems though that I don't think China has thought through.
First, China wants to lower the prices of energy. Russia isn't having any of that. Recent examples of Russia putting pressure on eastern European countries to increase the prices are what gives me this way of thinking.
Secondly, and more importantly, Russia has already shown that they will shut things down if things don't go their way. China can't have that. If prices to extract and refine oil go up, Russia isn't going to let that eat into their profits. They will want to pass that price increase down to China. China won't budge, and Russia will shut off the supply.
You can see where this is all going. You don't need a crystal ball to see that once China becomes reliant on Russia, there's a whole can of worms that will be opened up and one side is going to blink.
Travis
travis@rightwinglunatic.com
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