Demand destruction

Junk Nomad
ARD Blog Chinese Bureau Chief
Updated: 04/29/06 09:22 am

Shanghai, China - I am in Shanghai right now. My hotel room looks down on Yanan Rd, a major road into the city, and it has been jammed for hours. My wife just spoke to her aunt who sat for 2 hours in stop and go traffic to cover about 60 mi between Shanghai and Suzhou. There is no hint at all that high gas prices are having an impact on demand here. Anywhere in the world, if you are rich enough to buy and maintain a new car, you can afford gas at $3 or $4.