The Serious Speculator

In a single press release, Dale Jarrett Racing Adventure (OTCBB: DJRT) announced the addition of a new profit center while simultaneously expanding and clarifying its vision for the future of the company.  The company’s new World War II Adventure is an significant milestone in this exciting company’s history.

According to the World War II Adventure’s website at http://www.WorldWarIIAdventure.com, participants spend a weekend immersed in history as they relive a day in the life of a B-17 bomber as they prepare for participate in a recreated deadly bombing run over occupied Europe flying in the Liberty Belle, a meticulously restored vintage B-17 Flying Fortress.

According to Tim Shannon, CEO of DJRT, the company has spared no attention to detail in order to assure the participant of a totally authentic experience, the kind of adventure that creates lifetime memories. This adventure is without peer in the industry.

As impressive as the World War II Adventure is, we are equally impressed with the direction the company has chosen in order to expand its business.  We have spoken before about the opportunity for growth DJRT enjoyed with its flagship business established and growing organically and we encouraged you to watch for the company to make its move.  Well, the move has been made and we applaud their choice.

Dale Jarrett Racing Adventure is no longer just a NASCAR racing adventure company.  It has suddenly morphed into an adventure/entertainment company that delivers the finest quality experiential adventures that allow participants to step out of their “real life” and enjoy a variety of once-in-a-lifetime adventures.

Given the size of the entertainment and theme park industries, the company has just stepped out of a niche market representing perhaps $200 million a year into a broader market that accounts for tens of billions of dollars in annual revenues.

With the mid-market family oriented side of the industry being well represented by the likes of Disney with Disney World and Disneyland and Six Flags, Inc with amusement parks and theme parks throughout the nation, Dale Jarrett Racing Adventures is focusing instead on the under represented niche market of high end adventures.

The markets are full of examples confirming the success of high end niches in a wide variety of businesses.  IMAX, with its 70′ high screens and surround sound is very successful and dominates the high-end movie and theater business.  Walt Disney raised the bar and created theme parks where before there were only amusement parks.  Channel showed the world that you could create then dominate a profitable niche by declaring that desirability  was not only determined by the quality of a product being sold but also by the label and the fact that it was priced far beyond the reach of all but the super rich, thereby identifying owners as rich and powerful simply by the purse they carried or the dress they wore.

We see DJRT taking the same approach in the entertainment/adventure industry.  Tim Shannon has built a successful company by creating a superior product to capture market share in the NASCAR racing adventure markets.  Now they are taking their core competencies and applying them to offer a variety of top shelf adventures.  We think this is a brilliant strategy and one that will allow Dale Jarrett Racing Adventure unlimited potential for growth.  We look forward to watching this story unfold and suggest you give serious consideration to adding this gem of a company to your speculative portfolio.  The stock is at historic lows and has the fundamental strength to mitigate the risk while offering some pretty exciting upside.

For more information on DJRT, click here.

Note: We were paid $2,500 by the company to provide consulting services for the month of October.  This includes featuring the company on this website and blog. For more information please read our disclaimer.

Chang-On International Inc. (OTCBB: CAON) announced on Wednesday that they had completed the previously announced production line modifications.  According to the company, these improvements will lower costs and increase effectiveness.

In commenting on the announcement Mr. Guomin Li, President of CAON, stated, “We now have the ability to launch a production line to manufacture products made of our SF brand synthetic materials for as little as RMB 1,525,000 ($223,000). The cost effectiveness of our recent production line modifications gives us greater flexibility to expand regional distribution of our SF brand.”

Once again Chang-On has shown itself to be steadily moving forward, meeting goals and delivering the kind of results one would hope for when investing in a penny stock.  In the current economic climate, one wants consistency and competency in management as well as a clearly defined plan that is being followed successfully.  Chang-On appears to have all this and more.

Chang-On International is engaged in the manufacturing and sales of green architectural products in the multi-billion dollar building materials market in the People’s Republic of China. Through its sole operating subsidiary Harbin Hongbo Environment Protection Material, Inc., the Company utilizes China’s abundant supply of recycled plastic and coal waste as its main raw materials. SF resin can be molded into a virtually limitless range of end-use products, including pallets, pipes, tubes and wallboard, and is a superior substitute for PVC, steel, wood and cement. The Chinese government continues to make energy efficiency and green construction top priorities, and Chang-On is well positioned to become a major player in this growing sector.

We continue to think it’s only a matter of time before this company is discovered by the market and the stock begins to get the attention it deserves.  We highly suggest you take a look at this hidden gem before that happens.  Click here for more information on the company.

Note: We have been hired to feature Chang-On on our Real Stock Discoveries website for the month of October. For more information, please visit our disclaimer.

Red Reef Laboratories International, Inc, (Pink Sheets: RRLB) today forcasted potential revenues for its wholly owned subsidiary, MyoTrend Nutritional Technologies at between $15 and $25 Million as a result of recent international distribution relationships.  Recent collaborations offer a 50 country distribution channel into 1,200 outlets.  According to the company’s collaborative partners, 80% of its revenues occur in 12 of these countries.  The figures are based upon a percentage of revenues currently being experienced by the company’s collaborative partners.

In a related development, the company also revealed that they will be utilizing their MyoFit Fitness Journal, the company’s fitness publication, as a vehicle for tying in their new collaborative partner’s products with the MyoTrend brand.   The plan has proven to resonate well with distributors worldwide, as demonstrated by recently announced distribution agreements, largely due to tie-ins with MyoFit Magazine.

While we acknowledge that these lofty numbers may cause some to raise their eyebrows in disbelief, we also note that, if the company only accomplishes half of it’s forcasted potential or delivers at the low side of the projections, the numbers will still demonstrate a successful company with very impressive numbers.  If the company is able to deliver even $.002 in annual earnings per share, current shareholders will have something to brag about at cocktails and family reunions.   At a rational 30 times earnings, this could turn this sub-penny stock into a stock trading at $.06 and could turn a $350 investment into $6,000.

We continue to follow Red Reef Laboratories progress with optimism and great interest. For more information on RRLB, click here.

Note: We have been hired by an independent third party to feature RRLB on our Real Stock Discoveries website for the month of October. That includes coverage here as well. For more information please visit our disclaimer.

Chang-On International, Inc (OTCBB: CAON) today issued a press release announcing they are going to explore commercialization of its innovative SF brand of synthetic materials by developing initiatives to promote licensing of its production technology for synthetic materials and to generate royalties from licensing its SF brand synthetic resin technology.

This is a very bold and intuitive move on the part of Chang-On Int in light of the current global economic situation.  In tenuous economic times some corporations look to pull back.  Instead we see Chang-On looking at the situation and instead of seeing trouble, they saw opportunity and acted on it.

Since companies throughout the world are going to be looking for ways to reduce construction costs, CAON has an exciting opportunity to increase revenues and product credibility by licensing their environmentally friendly construction formworks (forms used in construction).

Since their proprietary technology allows for the construction of a wide variety of construction formworks, from concrete walls to pipes and water tanks out of readily made from shredded plastic and fly ash, two readily available and incredibly inexpensive materials, their technology offers licensees the opportunity t build market these products at a profit while reducing the end user’s construction costs.

One of the signs of a successful entrepreneur is the ability to remain flexible and to find opportunity in adversity.  An even greater sign is the ability to anticipate possible adversity and to find and act on the opportunity to avoid it.  That’s what we see going on with CAON and, frankly, we’re impressed.  This company is one of the most unheralded companies we have run across and we feel it deserves far more attention than it is getting.  Take a few moments to check it out by clicking here.

Chang-On International recently announced that it has taken the first important step toward opening international markets for their revolutionary “green” construction formworks.  The bureaucratic process to become a licensed to export products in China is complex.  Those that complete the process can compete in global markets and join the thousands of other Chinese companies that are competing successfully thanks to low wages and government subsidies.

The Company’s registration as an external trade proprietor was recently approved by the government, granting the import and export rights for its products and proprietary production techniques. All China enterprises must secure approval from the government of the PRC prior to engaging in external trade. This approval process involves a series of registrations and licenses from the government, of which the registration of external trade proprietor is the initial stage.

Commenting on this important development, Mr. Li Guomin, President of CAON, stated, “We are pleased to be able to announce the attainment of this recent milestone. This is an important step in our ultimate goal of expanding our reach into international markets and bringing our unique products to foreign buyers. We are actively engaged in completing all of the necessary steps to engage in external trade, and have made this one of our top priorities as we move forward with our development strategy.”

Chang-On’s proprietary formworks, made from recycled plastic and fly ash, two abundand and incredibly cheap materials, represent a huge breakthrough in the enviornmentally mandated construction industry as well as throught the world.

We applaud Chang-On’s accomplishment and encourage you to keep a close eye on this company. They are rock solid on their way to being in a position to transform an industry that uses 43% of the world’s concrete production.  We think that deserves a place in any speculative portfolio.

Note: We have been hired to feature Chang-On International for the month of October on our Real Stock Discoveries. Please read our disclaimer for more and compenstion details.

In the last 5 days Red Reef Laboratories, a feature company on our Real Stock Discoveries site has made two major announcements regarding their new subsidiary, MyoTrend Nutritional Technologies.  On Friday, RRLB announced that MyoTrend had entered into a distribution agreement with Corporación FOMOGLO S.A. to distribute MyoTrend products in Costa Rica.  Their initial target is the 1000 health and fitness clubs located throughout the country.  According to our research, FOMOGLO S.A. is a well established importer of natural products into Costa Rica.  1-costaricalink.com, “The #1 Costa Rica Information, Business, Hotel, Vacation and Travel Web-Site”, has FOMOGLO listed as one of only two sources of vitamins, minerals and nutrients in the country.

MyoTrend’s initial target is to generate $1 million annually from the FOMOGLO agreement.  On the heels of this significant announcement, the company just this morning announced today that it has entered into an exclusive distribution agreement with Europe’s leader in Sports Nutrition, NutriWorld Group B.V. (www.nutriworld.nl).  With active distribution outlets in 36 countries, MyoTrend has made it very clear, they have global aspirations and they are committed to making their products available to health and fitness consumers world wide.

The fact that FOMOGLO has chosen MyoTrend Products as their only fitness oriented product and that NutriWorld Group has chosen to add MyoTrend products to their existing list of quality items speaks volumes for the quality fo the products being produced by MyoTrend Nutritional Technologies.

NutriWorld Group’s enthusiasm for the MyoTrend products, NutriWorld has invited MNT to participate as one of only ten vendors under the NutriWorld banner in the upcoming 2009 FIBO show. FIBO is Europe’s leading International Trade Show for Fitness, Wellness and Health. In all, over 480 companies will be exhibiting and well over fifty thousand visitors are expected to attend. In 2008, there were 47,300 attendees at the show and the average spent per attendee was over 200,000 Euros.  Looking at the NutriWorld website, they have a very long list of products to chose from and we are impressed that MyoTrend’s line of state of the art nutritional supplements were chosen to be highlighted at FIBO.

There seems to be little doubt that the convergence of talents between Red Reef Laboratories and MyoTrend Nutritional Technologies was just what both these companies needed.  In less than a week, these two sleeping giants have gone taken their place on the national economic stage in bold fashion.  We look forward to upcoming announcements as initial orders from these two new relationships begin to bare fruit.

Disclaimer: We have been hired to provide services to RRLB for the month of October. That includes the posting of articles on this blog. Please take that into consideration and read our Real Stock Discoveries disclaimer for more information.

Dale Jarrett Racing Adventure is a company and a stock we have followed for some time now.  We like the company, and we like the product.  Providing the public and corporations with what they call “full throttle living” adventures, DJRT brings the true NASCAR experience to individuals at public events and through special corporate events.

Still, DJRT has more to offer as an investment than being one of the most exciting companies being traded publicly today. DJRT is also unique among bulletin board companies. The company has a 10 year history of building a company from scratch into a fundamentally solid company with growing revenues and an exciting yet believable plan for the future.

The flagship of Dale Jarrett Racing Adventure is their highly respected NASCAR racing school.  Featured at tracks across America, Dale Jarrett Racing Adventure through public events and corporate events provides ordinary people with an extraordinary experience, the opportunity to drive an actual NASCAR style race car around real NASCAR tracks at speeds approaching actual professional racing conditions.

Some people jump out of airplanes or walk across fire for the excitement and the adrenaline rush.  Others scale cliffs or ski dangerous slopes but DJRT customers say it over and over again, nothing holds a candle to driving a NASCAR race car around a banked oval at 150 mph when it comes to sheer excitement and total focus.  DJRT got it right when they described it as “full throttle living.”

DJRT’s stock has provided serious speculators with an exciting and profitable ride as well.  Because Dale Jarrett Racing Adventure prefers to invest its positive cash flow into building the company instead of expending large amounts of money on continuous promotion of its stock, from time to time the stock can, for a brief period of time, fall off the investing public’s radar screen allowing it to fall to levels we consider far below it’s reasonable value.  Just as consistently, situations converge and the stock is once again “discovered” and it moves solidly back up to more reasonable values in very short order.

With more than $.035 per share in current assets, the bulk of that in cash, and revenues of almost $.11 per share, we think this stock is trading significantly below its justifiable value at $.065 per share and can justify acquiring up to $.20 when the stock is out of favor.  Just don’t chase it.  When developments justify buying it higher, do so, as we see this stock as both a great stock to trade short term as well as one to build a position for the long term.  Management has proven its commitment to protecting shareholder value even while they have not always directed capital resources for ongoing promotion to promote share price.  We applaud this approach.

We also favor the idea of taking a some principal and even a little profit off the table as the stock moves back above $.375 but not clearing the decks.  As the company continues to implement the next phase of their growth strategy, we think the time will come when the stock doesn’t retrace and you don’t want to be looking back and wishing you held on to some. If it does retrace, simply restock at the bottom and get ready for the next run.  Anyone following this strategy has made extremely good money off this stock over the past few years.  Of course, backed by solid fundamentals and the very real involvement in operations and management by the Jarrett family further lends credibility to this stock as a solid investment.

Technically this stock is about due for another rally within the next few months.  We think this would be a great time to start accumulating a position. But don’t take our word for it, check out the company and the filings and make up your own mind. You can find their website at Racing Adventure.com

Note: Dale Jarrett Racing Adventure has hired us for the month of October to provide consulting services. We are being paid $2,500 for this service which includes featuring DJRT on this site.  This blog represents our opinion of the stock and does not necessarily represent the opinion of Dale Jarrett Racing Adventure management. For more information check out our disclaimer.

Synergy has a lot to do with a successful acquisition by a public company.  In a perfect world, the marriage of management and products compliment each other, making the whole greater than the sum of its parts.

That’s exactly what we see taking place with the acquisition of MyoTrend Nutritional Technologies, Inc. by Red Reed Laboratories, Inc. another of our feature companies for this month at Real Stock Discoveries. Red Reef Laboratories International, Inc. (Pink Sheets: RRLB), is a diversified scientific research, development, and marketing group.

Under the direction of Dr. Claus Wagner-Bartak, CEO of Red Reef Labs has developed a family of products dedicated to assist sufferers with effective preparations specifically targeting suffers and those at risk for Diabetes Type 2 (also known as adult-onset diabetes), a rapidly growing medial problems today as America’s baby boom generation ages. It comprises of readily available supplements that may help with the known effects of this disease by enhancing insulin function and the possible reduction of insulin resistance without the potentially harmful side effects of “conservative” medication. The company has identified three markets for their products.

The first market contains people diagnosed with Type 2 Diabetes and those with a probability factor for future diagnosis. To address this market, Red Reef Labs has already developed 5 products which will be marketed under the brand name “Metabetics”. This suite of synergistic products are designed to assist in the management of symptoms and will be rolled out into the market in the very near future.

RRLB’s second market focuses on nutritional performance supplements for personal fitness and athletic training. The company has selected several key products in the areas of strength, conditioning and weight management for optimum health and performance. This line provides a significant opportunity for complimentary cross marketing with Myotrend.

The third market addressed by the Metabasics suite of products focuses on health and wellness lifestyle products for men; this line features sleek packaging to appeal to discriminating, active middle to upper income males.

While Red Reef Labs was focused on developing the Metabetics suite of products, MyoTrend Nutritional Technologies was likewise busy developing state of the art nutritional supplements which focus on enhancing health and human performance.  Using one of the most demanding human laboratories, fitness and body building, MyoTrend Nutritional Technologies, has thrust itself into this niche and captured the attention and loyalty of amateurs and professionals alike. This unique setting has allowed the company to position itself on the leading edge of the nutritional supplement sciences.

By merging the intellectual talents of both teams working together, the new “dream team” has the ability to lead the industry forward with new breakthrough technologies and products and, by integrating MyoTrend’s advanced internet marketing strategies along with their existing brick and mortar supply chain, including the

world’s largest chain of healthfood stores and America’s largest manufacturer of nutritional supplements, GNC (General Nutrition Centers), the pending introduction of Red Reef Lab’s product lines has been propelled forward significantly.

Like we said at the beginning, this merger between Red Reef Laboratories and MyoTrend Nutritional Laboratories has all the earmarks of a total winner. By combining two highly compatible product lines then adding MyoTrend’s obvious talent at marketing both online and through traditional methods like GNC, which we consider to be a major coup, we expect to see RRLB’s Metabetics line on the shelves of GNC as well in short order. We’re excited about this one and encourage you to check Red Reef Laboratories, Inc out. The market is showing strong indications of getting ready to make a move so don’t hesitate on this one.

NOTE: We have been hired to feature RRLB on our website for 30 days. Please read our disclaimer for more information.

Twenty five years ago, I can remember discussing the markets with a very astute and successful investor. He possessed a wisdom that only comes from years of experience.  I was telling him about a speculative company that I thought was the hottest thing ever and how everyone was getting involved and were going to be rich.

He listened patiently while I went through my pitch then calmly asked me, “During the gold rush, thousands flocked to the gold fields to strike it rich but, aside from a very few miners who got lucky, do you know who made a fortune yet avoided the limelight?”  I thought about it and came up blank so he smiled and told me, “It was the guy that was selling picks and shovels.”

Using that analogy, Chang-On International (OTCBB: CAON) is the proverbial pick and shovel company in the midst of the construction gold rush in China.  Construction is booming in China big time.  US government statistics reveal that “Construction spending in China increased 165% in the last four years, according to the National Bureau of Statistics of China, and is still expanding at 25% annually.” Source: BuyUSA.gov .  At the same time, the Chinese government is putting an emphasis on the greening of the construction industry, both in the quality of construction and construction methods.

A key component in construction projects are the tools used to manufacture components from pipes to concrete walls and water tanks. Most of these components share one thing in common. They all need a mold or “formwork” to be made.  In China traditionally these molds have been made out of bamboo or some other wood or steel.  The problem with these materials are that steel is too expensive and needed elsewhere and wood molds don’t last very long.  Enter Chang-On International.

Chang-On International has developed its own proprietary technology which allows them to build these molds out of a special resin composed primarily out of recycled plastic and fly ash, a byproduct of burning coal.  The result of this amazing development is a mold that is less expensive than its counterparts, lasts longer than wood, is lighter than steel and seals better making for a higher quality finished product.  What’s more, being made entirely out of recycled materials, Chang-On’s products satisfy the Chinese Government’s mandate for green construction.

Led by an experienced management team headed by Guomin Li, 47, a pioneer in the field of manufacturing building materials from waste products, Mr Li has been the Chairman of Harbin Hongbo Environment Protection Material Ltd since 2004, now the operating subsidiary of Chang-On International.  Over the last 4 years, Mr. Li and his staff of researchers have developed and perfected the proprietary technology that is the basis of their newly implemented marketing strategy.

Imagine, not just a usable product, but a superior one, one that capitalizes on the convergence of need, government mandate and demand, made from ground up soda bottles, an inexpensive and plentiful resource and fly ash, an abundant product that, until now, has offered little utility other than as a filler in concrete. Just as often its nothing more than a disposal problem for coal fired plants.

Focusing initially on Northeastern China, Chang-On already has orders and revenues flowing in and they have already begun to draw plans for expansion of their production facilities and for international expansion through organic growth or licensing.

Consider that China currently uses 43% of all the concrete consumed in the world.  It’s a primary material for buliding construction and, that concrete needs a mold to harden in.  The right product, the right time and in the right place. Add to that, the diligence and fierce commitment to accomplishment Chinese achievers are globally respected for along with an amazing frugality (less than $100,000 in salaries since 2004) and you have a winning combination that is worth more than a passing glance.

We look at the lack of action in the stock as an opportunity, rather than an obstacle. We’re convinced, if this stock were as well known as we expect it will, the price would be much much higher. Check it out on our Real Stock Discoveries site.  We think you will be glad you did.

Note: We have been hired to feature Chang-On International on our websites. Please read our disclaimer for more information

Rising oil prices have impacted the American and global economies. Worse than that, they have shaken the American psyche. It’s gotten so that when we fire up that 350 cubic inch V8 or even our 4 Liter (244 ci) V6 engine, we hear a cash register ringing instead of the throaty roar of our proud American iron. We’ve replaced those jackrabbit starts with “egg on the gas peddle” caution. Someone’s to blame for this assault on a beloved tradition of the American way of life… driving big cars and driving em fast… and someone has to pay.. someone has to take the blame. The question is… “who really is to blame for these rising oil prices.

The finger pointing has started and it’s started in a big way. A lot of fingers are being pointed at the oil companies. They are raking in billions in extra profits now that their commodity has shot up in price. Still, oil is a global commodity and the value of oil is market driven. Sure, the oil companies aren’t selling their oil for a fraction of the global price but they aren’t the ones bidding up the price either. They are just reaping the windfall that comes from the rise in prices, just like people who have been buying gold all these years are now reaping the benefits of their wisdom. No, the group responsible for this oil crises are far more insidious and far less visible than big oil.

Of course, this being a political year, big oil is the perfect target for campaign rhetoric. They are easy to blame and, with their swelling profits, they are also easy to loathe and even regulate. We need someone to blame.. someone to hate for the $100 we have to spend to fill up the tank of our SUV or the $50 it costs to fill up the compact we traded our SUV for. Still, despite the fact that big oil may be the beneficiary of our misfortune, it’s not the cause.

The next target in the blame game is Saudi Arabia and the rest of the OPEC countries. Not many friends on this list. In fact, if it weren’t for the fact they have a lot of oil under their land, I doubt very much if we’d give them the time of day. The group is primarily made up of some pretty despicable people. We’ve got all the Arab nations, who in general abuse and oppress their women and treat them as chattel, a few African countries who, if they aren’t busy slaughtering their own, are some of the most corrupt people on the face of the earth, led by Nigeria, a country who could rightly be called the scam capital of the world and the place that spawned the “help I’m a ________ (fill in a noble position) and I need your help getting _______ (fill in an amount between 20 and 35 million dollars) out of the country and need someone honest to help me” con. Add to this sorry lot, countries who fund terrorists and have sworn to wipe Israel off the map and South American despots who are bent on causing trouble and you’ve got a very unsavory bunch of people. Add to that the basic truth that these countries produce basically nothing choosing instead to enrich themselves off their natural resources while basically ignoring their responsibility to the global community and it’s really easy to see why blaming them for this problem is easy to do.

While it’s true that OPEC could open the flood gates of production and bring down the price of oil, it’s not really fair to blame them either. Of course, they aren’t doing nearly as much as they could to support a peaceful Iraq which would enable the country to bring a much greater supply of oil onto the world market. A peaceful and friendly Iraq and middle east could help increase world production and could temper oil prices considerably.

Of course, should Obama or Hellary be elected President, you can kiss off the idea of a peaceful Iraq and increased production. Still, the anti war factions are probably all driving hybrids anyway so $5 gas won’t impact them nearly as much as the limo-riding, SUV driving, private jet flying Republicans but that’s a story for another day. The bottom line here is this; despite the obvious fact that OPEC’s production does impact oil prices, they aren’t the true culprit either.

Nor is it the market speculators. They too can have an effect over the short haul by perceiving and reacting to anticipated supply and demand but their effect can only be short lived. Nope, it isn’t the speculators and traders either.

I know what you’re wondering about now. Your asking yourself, “Well, if it isn’t big oil and if it isn’t OPEC and if it isn’t market speculators, then who the heck is it that’s driving oil over $110 a barrel?” After much research, and years under deep cover, I have figured out exactly who it is that is driving up the price of oil and I am just sick about it. It’s my sister Abigail. Now, before you lock me up or head over to Abigail’s house with pitchforks and torches, let me say first, Abigail hasn’t been acting alone and she didn’t do it on purpose. She has accomplices, lots of them. She isn’t even aware that it’s her. In fact, she’s one of the people wondering who to blame.

Yet, despite her innocent demeanor and complete lack of knowledge or even an awareness let alone a basic understanding of global economics, I have found her methods to be subtle yet highly effective. Please pay careful attention while I explain to you exactly what she does and how it makes oil prices go up.

First, she and her husband just bought a new Ford SUV with a 4 liter V6. They traded in their 5 year old V8 SUV and are convinced they are helping conserve oil by reducing their fuel consumption. Unfortunately, that’s about as helpful as Al Gore buying those carbon credits to offset the monstrous carbon footprint produced by his private jet. What they have done is confirm to Ford Motor company that there is still a market for 6 cylinder cars that deliver an average of 15 mpg. This assures us that they will continue making them for the foreseeable future since we have been giving them this feedback for years and years.

We live in a consumer driven economy. This means that business will build what consumers want to buy and they will instantly stop building what people no longer are no longer willing to be sold. Once we adjusted to gas in the $1.50 - $2.50 range America’s consumers let the auto industry know that they still had an appetite for size, power and performance and the manufacturers were only too happy to oblige. Conversely, if we had taken a stand in the eighty’s or even the nineties, and refused to purchase anything that didn’t deliver over 50 mpg, today the showrooms of America would be full of them and they would be awesome to look at and to drive. Unfortunately Abigail and her husband have purchased 4 new cars since the eighties and never once did they walk away from the gas guzzlers and opt for the most economical model around.

Thanks to Abigail, and all the rest of the “Abigail’s” in America, cars today are not significantly more economical than they were 20 years ago. If she had stood her ground and demanded cars that deliver 50mpg or better and if we had done likewise, our oil consumption would now be 20% less than it is today. That alone would be enough to weaken oil prices considerably. In addition, with all our gas bills reduced by more than half, imagine how much healthier our economy and dollar would be. Abigail… look what you’ve done….. how could you???? Yet, as awful as this is, this is nothing compared to what else my sister, the ruthless operative, the enemy of rational oil prices throughout the world, has done.

Hang on to your hats because you won’t believe what I am going to tell you now. Abigail is a price conscious shopper. I know, I couldn’t believe it when I heard it either. And, to make matters worse, she almost never looks to see where something she is buying is made. This means she shops a lot in places like WalMart and the vast majority of the consumer goods she buys are made in China. It’s not just WalMart either, pretty much wherever she goes, much of what she purchases, is made in China. Thinking she’s a good American, she buys recognizable American brands when she can, thinking this is going to help but she still winds up with goods that are manufactured in China. Heck, she even has a bottle of McCormick Schilling Garlic Powder in her spice cabinet that, as I write this, she thinks came from Gilroy, California, the garlic capital of the world when, in truth, it was produced in China.

Is that diabolical or what? What, you don’t get the connection between Abigail buying Chinese made goods and the skyrocketing price of oil? Of course you don’t, that’s what makes her the most dangerous operative of all. She’s there in WalMart or Target or pretty much anywhere else, picking Chinese made items off the shelf and people walk buy and see her doing it and they are none the wiser. In fact, they are all doing it themselves. Heck, we all are. Of course, Abby’s not the only operative around. If she were the only one executing this strategy, it would never work but, by us working together, it’s working flawlessly. Here, I’ll connect the dots for you.

Fact #1 - You can make stuff in China cheaper than in the US. So much cheaper, in fact, that American companies can afford to manufacture a product in China and pay shipping and import duties and still sell it cheaper than if they produced it in the US.

Fact #2 - Most American consumers, given a choice between two comparable products, will choose the one made in China if it is priced lower than the one made in America.

Fact #3 - Retailers compete for consumer dollars based upon price vs perceived quality and brand has more to do with perceived quality than the country where a product was manufactured.

The bottom line here is simple. If you want to compete with a product, make it in China.

How can China afford to make stuff so cheap? It’s simple. They pay their workers less than $300 a month and work them longer hours with fewer benefits or safety precautions. China is about the same size as the US but they have 1.3 billion people compared to our 300 million plus. Their people have little and want less than American’s. It’ s not rocket science… it’s fundamental.

Since America is full of the world’s greatest consumers and China is the land of mass manufacturing, we have been and contninue to be the primary moving force behind the emergence of China from a developing country into a manufacturing and economic powerhouse. Our companies are directly or indirectly employing the Chinese instead of American workers since American consumers are willing to purchase virtually anything, regardless of where it was made as long as it has acceptable quality and is priced better than alternative products. This totally shortsighted attitude has directly fueled the growth of this new economic powerhouse.

A direct byproduct of China’s explosive growth as an economic superpower is a rapid increase in energy consumption by China. Not only are they building and powering more and more factories, a rapidly expanding workforce needs transportation to and from work. Bikes are replaced by scooters and scooters are replaced by cars. More trains and buses are needed to transport this ever expanding workforce. All this takes more and more energy and it is this rapidly expanding demand for oil that is driving up the price of oil and the cost of a gallon of gas for our cars.

At the same time, we are also fueling economic growth in India, although to a lesser degree with a focus on textiles. For example, in 2005, WalMart alone imported about $1.5 Billion worth of goods from India while importing more than $20 Billion worth of goods from China and the imports from these two countries have been growing exponentially for years. With a greater understanding of the kind of growth that India and China are enjoying, thanks to our unabated corporate greed and American’s unquenchable appetite for more cheap stuff, coupled with a total disregard of the far reaching cause and effect of this rampant consumerism absent any sense of nationalistic pride, we can finally begin to appreciate why a gallon of gas is approaching $4 a gallon. We have created the demand for more consumption within the Asian theater. All the while, we are sending our money over there to fund the growth and to pay for the oil that they competing with us to buy. Pretty stupid when you stop and think about it.

So, as long as Abigail and the rest of us keep buying and driving cars that deliver less than 50 mpg and as long as we keep buying goods made in China this vicious cycle will continue. When will it end? That answer is as simple. It will end the minute we make the decision to stop buying goods that are not good for America. When we, as a society, collectively draw a line in the sand and say “No More” and let inefficient cars rust on the lots and either do without or opt for the “Made in America” label rather than take another Made in China product to the checkout stand, American business will stop importing them.

American business is great at selling us what we want and they listen very carefully. They listened when we told them we wanted acceptable quality and really low prices regardless of where things were made and believe me, they will listen when we tell them that we made a mistake and want to go in another direction. Sadly, most of us are followers so those of you that are leaders, it’s time to lead us out of this big mess we’ve made. Here’s hoping we get started before it’s too late. The clock is ticking and it too was made in China.

NOTE: We are featuring an exciting company that manufactures and sells lithium-ion battery powered motorcycles. They are the kind of company that benefits from an oil crises and their bikes are made right here in America. Check them out by clicking here.

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