http://biz.thestar.com.my/news/story.asp?file=/2009/7/16/business/4326188&sec=business another article....... "China's banking regulator on Tuesday had urged lenders to ensure that loans enter the real economy, rather than flow into property and stock markets for speculation." http://www.forexyard.com/en/reuters...IDST_0_MARKETS-HONGKONG-CHINA-STOCKS-UPDATE-3 "Adding to the pressure, weak U.S. consumer confidence in the previous session weighed on Shanghai copper and on oil, which slid below $67 a barrel , beating down resource stocks" Long and short of all this IMHO...Chinese money/reserves are staying at home, Yuan will be invested at home to get to their growth projections and because of a total lack of confidence in US dollar, even further tightening of investment (USA) is coming, the dollar will suck even more and we are getting screwed faster than I thought personally it could happen................................I do not want to even speculate how high inflation could go here..............of course JMHO...but I'm right
Sadly .02, the ChiCom students knew more about Economics than the average US College Graduate, they were laughing at Geithner for a obvious reason. Oh boy...time to purchase TIPS, maybe some more gold or utilities stocks.
Not yet, "if" the dollar breaks the 72 cent floor, we are soo screwed, "if" the purchasers of Debt demand payment in other currencies than the dollar, strike two, "if' CA does collapse, better buy some potted meat and TP my .02.
In the business I am in we get extended terms (120 days) from India and China, both had increases in cost of money and now with this news that is going to get even worse, so we will have to raise prices what amounts to 6-8% or lose margin just based solely on cost of money. US manufactures are already raising prices due to lost economies due to demand...there is no more margins for them to eat just to keep market share.............. Personally I think breaking .72 is a no brainer but that may just be me. I do not think the currency of choice will change soon, if it does that is the end game....Cali's demise is simply delayed IMO that is a given........ So what is your advice....Charmin or Cottenale?
Well, sadly, .Gov is in charge of calculating infation stats, chances are good they will under report inflation stats to avoid budget busting COLA increases. Don't like it, that is the way that it is though. Don't be so certain, the Fed has no problem purchasing debt notes with monopoly money, making Billionaires out of people like Soros, if we break the .72 cent floor, I'm betting gold goes to 1,300 or so. As for CA, what do the living care about the dead? Pom, industrial TP, one case, 200 rolls...40 bucks...cannot beat that deal at Sam's, look at paper wholesalers.
