Thoughts on Markets

Friday, March 19, 2010

More Manipulation - China - Future Perspective


Folks, Below in the gold and silver graphs from Stockcharts.com, we are presented with evidence of extreme intervention in the paper market for our precious metals. Both gold and silver hit at exactly the same time. Remember, there are no longer any free markets only intervention. The boyz have returned in spades, but it is likely that they are running out of steam. At least, that is my prayer and hope. There is no hope for the precious metals to reach their market price in dollars as long as this manipulation continues. In stead of Congress going after our international benefactor, China, they should be going after this manipulation.


From the Daily Pfennig: "The US congress continues to push Treasury Secretary Tim Giethner to brand China as a currency manipulator, and is threatening to take measures aimed at forcing the Chinese to let their currency appreciate. Chinese Premier Wen continues to say the currency is not undervalued, and Goldman Sachs Chief Economist Jim O'Neill announced this week that he agrees. O'Neill told reporters that the currency "actually isn't particularly undervalued anymore" and "it's unfortunate that we have so much political angst around this. The key thing is that post-crisis, China is importing a lot."

Goldman's stamp of approval is big, as we all know the influence they enjoy in our nation's capital. Other big NY banks are also warning congress against pushing China too hard. Stephen Roach captured many headlines in the financial news sections today when he said "We should take out the baseball bat on Paul Krugman" who has been beating on congress to step up pressure on China for keeping its exchange rate unchanged vs. the US$. Krugman has called on congress to get more aggressive with China by instituting duties and escalating a trade war."

The could have serious consequences for us. It is much like stirring the wasps about a calm nest full. We've done it before with a heavy hand and gotten bitten as a result. Pray we don't go down this dangerous path. The "Buy America" thing is the same. To push this is to alienate our international "friends" to do the same with our limited manufacturing products. No trade wars, please, please!

From Gary North's Reality Check today: " In the short run, U.S. Treasury debt is no-risk, or close to it. It sets the standard for financial economists on what constitutes zero risk. In the long run, it is a guaranteed loss.

Everyone knows this debt will not be paid off. Everyone knows that it will grow. Everyone knows that the only reason for buying U.S. Treasury debt today is to park money where it is safe. Thedebt is liquid. The long-term future is irrelevant for present decision-making, they believe."

What he has said is absolutely true. It is amazing how short sighted worldly men are. The philosophy is "Live for today, for tomorrow we die" or "Live fast, die early, leave a handsome corpse." The secular man in a fallen world has a very short view of the future, while the Christian has a long term view. The fallen world does not really care about the future while the Christian works to bring all of life and that portion with which he has contact under the dominion of King Jesus. He knows that King Jesus rules the world and rests in the peace that gives his life. Remember, saving in economic terms is foregone consumption (spending) to prepare for the future.

From TownHall.com:

Thank You, Bret
by David Limbaugh

I pray that President Barack Obama's interview with Fox News' Bret Baier is replayed repeatedly on Fox News Channel and circulated widely on the Internet for all to see. The more who watch it the more people will realize just how drastically the unscripted Obama varies from his projected image as God's gift to bipartisanship, compromise, congeniality and democracy.

What came across most glaringly was that there is little he wouldn't do to force Obamacare on us, from lying to evading to concealing to abusing the legislative process to violating the Constitution to dividing the nation. Consider some highlights. Read it HERE.

From MineWeb.com:

Rare earth minerals critical U.S. national security issue ‘with potentially severe consequences'-House Rep. Coffman

U.S. House committees and representatives are getting serious about the U.S. rare earths supply chain, China's plan to create a Rare Earth OPEC, and reviving domestic rare earth mining and exploration.

Author: Dorothy Kosich
Posted: Friday , 19 Mar 2010

RENO, NV -

Rep. Mike Coffman, R-Colorado has introduced legislation in the U.S. House of Representatives aimed at developing a domestic supply of rare earth minerals that are vital to the manufacture of critical advanced technologies such as wind turbines, hybrid vehicles and missile guidance systems. Read it HERE.

From MineWeb.com:

Global gold demand to recover in 2010 -WGC

A pick up in jewellery and investor demand should help boost gold demand during the year an official at the World Gold Council

Posted: Thursday , 18 Mar 2010

MILAN (Reuters) -

Global gold demand is expected to recover in 2010 after a fall last year, helped by a pick-up in jewellery demand and firm investment demand, a senior official at the World Gold Council said.

"I would expect to see a plus sign at the end of the year," Rozanna Wozniak, investment research manager at the industry-funded WGC, told Reuters on the sidelines of a presentation on Thursday. Read it HERE.

Miners from Scottrade.com:

Currencies from Kitco.com:

Some current prices: BYDDF 9.80; FVITF 2.3556; KENS 0.02; TBT 46.96 (This is our play against the long term Treasuries; DOW off 28 to 10752.41; Gold a manipulated off 18.50 to 1107.60; Silver same manipulation off 0.029 to 17.10.

Keep your eyes upon Jesus and follow His way as revealed in Scripture.

Best to each, Doug

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