What Do the Chinese Know That We Don't ?

Asheron

[FONT=Arial, Helvetica, sans-serif]What Do the Chinese Know That We Don't ?[/FONT]
[FONT=Arial, Helvetica, sans-serif]Richard Russell [/FONT]

[FONT=Arial, Helvetica, sans-serif]February 4, 2011 - What do the Chinese know that we don't? According to my favorite newspaper, the Financial Times, the Chinese people are buying gold like there's no tomorrow. According to the Times, "Precious metals traders in London and Hong Kong said on Wednesday they were stunned by the strength of Chinese buying in the last month. The demand is unbelievable. The size of the orders is enormous. . . . . Official data shows China importing 209 tonnes of gold during the first ten months of last year: vs. 333 tonnes for India the entire year. . . . Traders say China will overtake India as the largest consumer of gold this year." [/FONT]

[FONT=Arial, Helvetica, sans-serif]Russell Comm[/FONT][FONT=Arial, Helvetica, sans-serif]e[/FONT][FONT=Arial, Helvetica, sans-serif]nt - China and India, between them, have a combined population of 2.6 billion people or near one half of the planet's entire population. China's leaders have been urging China's people to buy gold. India's population needs no urging, gold is built into the DNA of most Indians. [/FONT]

[FONT=Arial, Helvetica, sans-serif]In answer to the question, "What do the Chinese know that we don't?" The Chinese know that all fiat paper eventually ends worthless. They also know that through the ages gold has been a store of value. The Chinese see their government getting out of dollars, and they are following their government's example. The Chinese people's alternative choice vs. fiat paper is gold. [/FONT]
[FONT=Arial, Helvetica, sans-serif]The American people see that the Fed is now the world's largest holder of Treasuries. Treasuries are denominated in dollars. Americans are following the Fed's example. Americans are staying with Federal Reserve notes, still mislabeled as "dollars." [/FONT]

[FONT=Arial, Helvetica, sans-serif]A dollar was originally defined in terms of specific weights of gold and silver. There is no definition for a Federal Reserve note. A Federal Reserve note can only be defined in terms of other fiat currencies. [/FONT]
[FONT=Arial, Helvetica, sans-serif]So where are we? My studies show that the primary trend of the stock market remains bullish. Therefore, I recommend pilot positions in DIAs and more if there's a correction. [/FONT]
[FONT=Arial, Helvetica, sans-serif]My studies indicate that the bull market in gold is still intact. The ideal position in gold is to hold the actual physical metal (hide it where you want). Otherwise, own "paper gold, GLD or SGOL. [/FONT]
[FONT=Arial, Helvetica, sans-serif]I believe the world has "had it" with the Fed, the US Treasury and the US dollar. Swap your dollars for either of the above. [/FONT]

[FONT=Arial, Helvetica, sans-serif]Sell your Treasuries, your munis, and all bonds. Sure they'll pay off, but they'll pay off with shrunken dollars. [/FONT]
[FONT=Arial, Helvetica, sans-serif]A decent loaf of bread may cost you two bucks today. Ten years from now, the same loaf of bread may cost you ten shrunken dollars. [/FONT]

[FONT=Arial, Helvetica, sans-serif]It will still be a decent loaf of bread, and they'll still call a dollar "a dollar." But that dollar will have lost maybe 90% of its purchasing power. No wonder the Valley Girls are screaming OMG. They're thinking about the future of the dollar. [/FONT]
[FONT=Arial, Helvetica, sans-serif]Come to think of it, when I was a kid it was considered a sin to take the name of the Lord in vain. OMG! But who cares about sins here in 2011? [/FONT]

[FONT=Arial, Helvetica, sans-serif]Richard Russell[/FONT]

WhiteHorse

American debt is out of control. The dollar is collapsing. Armed conflict between the US and China is increasingly likely. Any country with large precious metal reserves will be sitting pretty.

Reaper

WhiteHorse wrote: »

American debt is out of control.

It is indeed huge.

The dollar is collapsing.

It is? Compared to the £ and Euro it is the same or higher than it was a year ago.

Armed conflict between the US and China is increasingly likely.

Actually highly unlikely. While it is true China is prepared to be more aggressive as they modernise their military conflict with the US is not likely because:
1) The US military still dwarfs the Chinese. There is really no comparison.
2) They are economically dependant on each other. That vast debt you mentioned at the start? It is owed to China. The US can't afford to have them offload it, the Chinese don't want to offload it (they want a strong dollar) and certainly don't want a conflict that might mean the US decides it doesn't need to pay it back.

Any country with large precious metal reserves will be sitting pretty.

Maybe, but food and oil and other commodities are also important, perhaps more so as they have practical uses.

purch

What Do the Chinese Know That We Don't ?

Mandarin ??

caveat_emptor

Confucious he says when labour is cheap business is good.

darkpool

maybe they know they have a problem with inflation and overpriced property?

maybe they also know that with their "one child" policy they'll one day have an ageing workforce and a lot of pensioners?

i don't think china is a good long term investment - maybe they think the same and that's why they are buying gold?

vulcangascompany

caveat_emptor wrote: »

Confucious he says when labour is cheap business is good.

Confucious also said man who goes to bed with itchy bum wakes with stinky finger.

WhiteHorse

Reaper wrote: »

It is? [dollar collapsing] Compared to the £ and Euro it is the same or higher than it was a year ago.

The dollar is no longer the currency of choice. That alone is devastating, as much of the strength of the dollar relies on the fact that countries horde it.

Actually highly unlikely. [conflict with China].

Actually, it's already started. There have been shooting incidents already. US planes and ships regularly enter Chinese waters and airspace. Provocation is now routine.

While it is true China is prepared to be more aggressive ...

The reverse - it's America that's becoming more aggressive.

as they modernise their military conflict with the US is not likely because:

1) The US military still dwarfs the Chinese. There is really no comparison.

A land war against China is impossible. Even biological agents would not ensure success. China is also on the verge of possessing a full scale nuclear deterrent. That negates everything else - doubly so given that China could survive a nuclear exchange and America can't.

A recent top level US military report stated that war with China was likely 'within 20 years', and if war broke out at that time, America 'would probably not win it'.

2) They are economically dependant on each other. That vast debt you mentioned at the start? It is owed to China. The US can't afford to have them offload it, the Chinese don't want to offload it (they want a strong dollar) and certainly don't want a conflict that might mean the US decides it doesn't need to pay it back.

The US now imports most heavy engineering products from Asia. A recent report stated quite bluntly that America could no longer fight another world war, because it's huge industrial base is gone.

In any event, China is not interested in money per se, it's interested in the leverage that debt buys, which is not the same thing.

Maybe, but food and oil and other commodities are also important, perhaps more so as they have practical uses.

China has vast agricultural reserves and can also access supplies in the rest of Asia.

Reaper

I was going to reply point by point but your views are so far off track I don't think there is any chance of swaying your opinion. I suggest you start by checking your info as I suspect some has not come from objective sources. For example the US is not going in to Chinese waters or airspace to provoke them, what would they have to gain? You must have been reading Chinese propoganda about the Yellow Seas exercises. They were outside Chinese waters and were held to show support for South Korea and warn off North Korea following its recent attack.

snowqueen555

Whitehorse, that sounds like any old hogwash you read on a conspiracy website with no references or anything.

Loughton_Monkey

darkpool wrote: »

maybe they also know that with their "one child" policy they'll one day have an ageing workforce and a lot of pensioners?

This stopped recently. Now couples can have two children (provided they were single children themselves). Hence they are doubling the number of 'economically active' people - just in time to benefit the elders.

No impact on pensions, though. State pensions (as we know them) don't exist.