Chinese investors gobbling up gold bullion
By Daily Crux Editor Sean Goldsmith:
Investors in China, the world's second-largest gold consuming country, are stepping up purchases of physical gold as a hedge against economic disaster... "Gold demand in China in the first quarter rose to 114 tons, up 2 percent over the same period last year, solely boosted by an increase in jewelry demand," according to the latest report from the World Gold Council.
Chinese investors are taking a cue from their government, which increased its gold reserves nearly 76% to 1,054 tons since 2003, and will likely continue buying as the dollar continues its death spiral and the renminbi becomes more internationalized... "China's gold reserves may serve as backing for the yuan as Beijing is stepping up the promotion of its use overseas," said Albert Cheng, director of the World Gold Council's Far East Division.
Note: China is rightly scared to death that its holdings of US Bonds will disintegrate in value as inflation takes hold in the US. The prospect for which is HUGE, considering the Trillions of dollars in bonds the Govt and the Fed have issued to fight the deflation in this country.
They are buying gold as protection against inflation and the possible devaluation of the US dollar.
This is pushing up the price of gold and my favorite, silver. Over recent months, gold has gone from about $895 to $985, a nice move. Silver on the other hand has gone from $10 to $15 an increase of 50%. For more info on why I feel silver is the better investment, click here: http://silverpros.blogspot.com/2008/11/why-silver.html for more information
on "why Silver" including a video by Robert Kiyosaki on Investing in Silver.
Showing posts with label china. Show all posts
Showing posts with label china. Show all posts
Wednesday, June 3, 2009
Sunday, March 15, 2009
A Shot Across Our Bow, From Our New Masters, the Chinese!
March 12, 2009
The Debtor, is the Slave of the Creditor!
The Debtor, is the Slave of the Creditor!
”We have lent a huge amount of money to the United States,” (70% of its total $2 Trillion in foreign investments!) Chinese Premier Wen told the annual press conference that marks the close of the National People‘s Congress, China‘s parliament.
”Of course we are concerned about the safety of our assets. To be honest, I am a little bit worried. I request the US to maintain its good credit, to honour its promises and to guarantee the safety of China‘s assets.”
Darn those diplomats, have you ever seen a threat couched in such polite terms? "I request the US maintain its good credit...and guarntee the safety of China's assets!" (Or else?)
All a part of the 8 year legacy of George Bush, recently voted the 36th worst President in American History, who borrowed more money, mostly from China, than all American Presidents before him. His administration some how took an inherited budget surplus and left us with an economic crisis greater than all others in the history of the world and that will probably degenerate into the 2nd Great Depression!
Making us the US the biggest debtor in the history of the world and the debt slave of our new, Chinese Masters, is not what I call "keeping us safe" In fact it is just the opposite, George, look it up in the Thesaurus, or have someone look it up for you!
Monday, February 2, 2009
Interest Rates to Skyrocket This Year!
The Only bright light for the real estate market is about to be smothered. Interest rates will skyrocket this year and next making it that much harder to qualify for mortgages, especially at today's high real estate prices.
The culprit is the US government. It must finance last year's record budget deficit of 1/2 Trillion dollars plus this years record busting deficit of about $2 Trillion, plus the stimulus package and all of the "quantitative easing" of the Federal Reserve, (which again, is as Federal as Federal Express!). And let's not forget the original $700 Billion Wall St Bailout, plus the approximately $2 Trillion additional which will be needed sometime in the next 18 months to bail out the banks again.
You can also expect to see various other multi Billion dollar bailouts; autos, states, pension funds, etc.
These humungus expenditures will be financed by the government saturating the market with Treasury Bonds. As more and more treasuries are issued, their prices will start to fall and when that happens their yield goes in the opposite direction, Up.
Also, 40% of our national debt is held by China and other foreign governments. When the prices of Treasuries and thus their investment in them starts declining, interest rates will have to be raised to incent them to buy more and to hold on to what they already have. Already the Chinese have dumped over 20 Billion in Fannie Mae and Freddie Mac Bonds during the last 5 months of the 2008. They have also halted investment in many American companies. They realize the US is going to flood the market with new Treasury issues and depress the prices.
Not only housing, but all businesses will be adversely affected with the rise in interest rates, including the stock market, which I believe will see Dow 5,000 before the year is out! Possibly as early as the release of the 4th Qtr, 2008 economic data, due out shortly.
It is important that you get out of debt, especially credit card debt, where they can increase your interest rates at will, as soon as possible. For information on debt relief, see our site: http:HowtoSolveYourMoneyProblems.Com
The culprit is the US government. It must finance last year's record budget deficit of 1/2 Trillion dollars plus this years record busting deficit of about $2 Trillion, plus the stimulus package and all of the "quantitative easing" of the Federal Reserve, (which again, is as Federal as Federal Express!). And let's not forget the original $700 Billion Wall St Bailout, plus the approximately $2 Trillion additional which will be needed sometime in the next 18 months to bail out the banks again.
You can also expect to see various other multi Billion dollar bailouts; autos, states, pension funds, etc.
These humungus expenditures will be financed by the government saturating the market with Treasury Bonds. As more and more treasuries are issued, their prices will start to fall and when that happens their yield goes in the opposite direction, Up.
Also, 40% of our national debt is held by China and other foreign governments. When the prices of Treasuries and thus their investment in them starts declining, interest rates will have to be raised to incent them to buy more and to hold on to what they already have. Already the Chinese have dumped over 20 Billion in Fannie Mae and Freddie Mac Bonds during the last 5 months of the 2008. They have also halted investment in many American companies. They realize the US is going to flood the market with new Treasury issues and depress the prices.
Not only housing, but all businesses will be adversely affected with the rise in interest rates, including the stock market, which I believe will see Dow 5,000 before the year is out! Possibly as early as the release of the 4th Qtr, 2008 economic data, due out shortly.
It is important that you get out of debt, especially credit card debt, where they can increase your interest rates at will, as soon as possible. For information on debt relief, see our site: http:HowtoSolveYourMoneyProblems.Com
Sunday, December 28, 2008
Home prices to fall and fall and fall...
I just read an article forecasting more trouble for real estate in 2009.
The author seemed to be incredulous about that possibility, saying that some markets were even approaching Pre-Bubble price levels as though that was an organic impossibility.
If you check you will see that the last 2 real estate booms in the 70's and 80's resulted in prices dropping back to pre-boom levels before they took off again.
That is what statisticians refer to as a "regression to the mean," falling back to the historic trend line.
There are even more significant troubles for real estate in 2009 and beyond than are perceived by many real estate experts.
These troubles will continue to drive prices down even further. Although some markets are in fact approaching pre-boom prices, the pendulum may not stop at mid point and may actually swing all the way past pre-boom prices. Have you ever known a pendulum to stop mid way through its swing?
Here are some additional factors to consider:
The credit crisis is forcing banks to husband what little capital they have which is why they will restrict lending to the Very qualified.
How many prospective home buyers have 750+ FICO or Credit scores And 30% in cash for down payment, closing costs and bank mandated cash reserves? Especially since the US savings rate has been hovering around zero for the past decade.
Fewer buyers equal lower demand which means lower prices.
Also, how many more homes will be deserted by home owners who are Underwater, owing more than they owe? It is estimated that nearly 16% of owners with mortgages or about 8 Million home owners are in this situation. These desertions will add greatly to the bloated inventory of homes weighing down the market.
Finally, the only bright spot in housing will probably be extinguished in 2009 as interest rates will skyrocket once China is forced to stop buying our debt because of our dwindling purchases from them.
One report I read said that rental of a typical space on a freighter delivering goods to the US from China, fell from $236,000 for the trans Pacific crossing to $5,000!
Once China stops buying our Treasury Bonds, we will have to lower prices on them to attract other buyers, which will jack up their yields or interest rates as they move inversely to prices.
Our mortgage rates will then soar because they are pegged to the 10 year Treasury Bond yield.
So, despite the optimistic predictions of many rose tinted, shade wearing real estate "professionals" the likelihood of a rebound in housing is probably further away in 2009 than at any time since the real estate bubble burst.
Copyright 2008 Bill Young. Bill is offering a free, one year course for people who want to know how to quit living pay check to pay check and how to become financially free developing multiple streams of income from real estate and home based business assets. Register here: http://HowtoSolveYourMoneyProblems.Com
Article Source: http://EzineArticles.com/?expert=Bill_Young http://EzineArticles.com/?Home-Prices-to-Fall-and-Fall-and-Fall&id=1819502
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The author seemed to be incredulous about that possibility, saying that some markets were even approaching Pre-Bubble price levels as though that was an organic impossibility.
If you check you will see that the last 2 real estate booms in the 70's and 80's resulted in prices dropping back to pre-boom levels before they took off again.
That is what statisticians refer to as a "regression to the mean," falling back to the historic trend line.
There are even more significant troubles for real estate in 2009 and beyond than are perceived by many real estate experts.
These troubles will continue to drive prices down even further. Although some markets are in fact approaching pre-boom prices, the pendulum may not stop at mid point and may actually swing all the way past pre-boom prices. Have you ever known a pendulum to stop mid way through its swing?
Here are some additional factors to consider:
The credit crisis is forcing banks to husband what little capital they have which is why they will restrict lending to the Very qualified.
How many prospective home buyers have 750+ FICO or Credit scores And 30% in cash for down payment, closing costs and bank mandated cash reserves? Especially since the US savings rate has been hovering around zero for the past decade.
Fewer buyers equal lower demand which means lower prices.
Also, how many more homes will be deserted by home owners who are Underwater, owing more than they owe? It is estimated that nearly 16% of owners with mortgages or about 8 Million home owners are in this situation. These desertions will add greatly to the bloated inventory of homes weighing down the market.
Finally, the only bright spot in housing will probably be extinguished in 2009 as interest rates will skyrocket once China is forced to stop buying our debt because of our dwindling purchases from them.
One report I read said that rental of a typical space on a freighter delivering goods to the US from China, fell from $236,000 for the trans Pacific crossing to $5,000!
Once China stops buying our Treasury Bonds, we will have to lower prices on them to attract other buyers, which will jack up their yields or interest rates as they move inversely to prices.
Our mortgage rates will then soar because they are pegged to the 10 year Treasury Bond yield.
So, despite the optimistic predictions of many rose tinted, shade wearing real estate "professionals" the likelihood of a rebound in housing is probably further away in 2009 than at any time since the real estate bubble burst.
Copyright 2008 Bill Young. Bill is offering a free, one year course for people who want to know how to quit living pay check to pay check and how to become financially free developing multiple streams of income from real estate and home based business assets. Register here: http://HowtoSolveYourMoneyProblems.Com
Article Source: http://EzineArticles.com/?expert=Bill_Young http://EzineArticles.com/?Home-Prices-to-Fall-and-Fall-and-Fall&id=1819502
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