High fuel prices are hitting the third world very hard. Profit
margins in the textile industry are so thin that many simply close
down rather than try to raise prices to meet the extra expense.

"JAKARTA, Oct. 25 (Xinhuanet) -- Over 70,000 workers have been laid
off in Indonesia since the government hiked fuel prices on Oct. 1,
local media reported on Tuesday.

''The workers are from Bandung, the capital of West Java province and
Surakarta in Central Java province. I expect the number to reach
100,000 by the end of this year," Chairman of the Textile Association
Benny Sutrisno was quoted by the Jakarta Post as saying.

"In total, some 500,000 will have to be laid off because fuel
comprises 30 percent of production cost, not to mention other cost,"
he added.

The chairman said that some 300,00 workers were from medium and large-
size industries, while the remaining 200,000 workers were from small-
size industries.

"Laying of workers is a tough decision to make because of the strong
relation with workers and the high severance pay," he said.''
http://news.xinhuanet.com/english/2005-10/25/content_3681727.htm

And high fuel prices are causing industry shutdowns in the developed
world also:

"The Government has admitted that companies across Britain might be
forced to close this winter because of fuel shortages."
http://tinyurl.com/7egry

Peak oil is already starting to hurt. And it is going to continue to
get worse, worse year after year after year.

Ron Patterson