Reply #4: China bans hoarding of oil, coal to cool prices

[ozymandius]

SHANGHAI – China is banning the hoarding of oil, coal and other key commodities, seeking to ensure supplies and cool prices that have surged to politically volatile levels despite repeated moves to curb inflation.

The moves reported by state media Tuesday are Beijing's latest effort to counter unease over inflation that jumped to a 25-month high of 4.4 percent in October. Authorities want to reassure a nervous public that the government can handle inflation pressures that some worry could spiral out of control.

Authorities say soaring food prices — which jumped more than 10 percent in October — are mainly to blame for the current bout of inflation, but costs for fuel and other necessities have also jumped, as supplies have run short.

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China is playing it smart by short-circuiting the mechanisms that threaten its economic national security. I would applaud if the United States and other nations would do the same as I see energy resources as essential to our national security in every definition of the phrase.