Bill Herbert

China's Silver and Gold Download

>>Once Hong Kong's gold is safely back in the new vault there in Hong Kong, watch China use the Hong Kong Dollar as a stalking horse for the Yuan by pegging the HKD to their gold and watching what happens. Never, ever forget that when dealing with China, NOTHING happens by "accident".<<

M.A.D. - You are so right. I would surmise that over the next few years, we will see China rapidly accumulating gold and other PMs, as well as building huge stockpiles of industrial metals. While some argue that this would be counterintuitive (driving down the dollar, thereby shooting themselves in the foot) I suspect that the Chinese have already calculated the inevitability of the US Dollar sinking much further, and don't want to be the lone soldier trying to hold the fort against economic reality.

In fact, this trend of dumping dollars quietly for REAL goods has already begun - I think China will also become very aggressive in terms of buying up mines, processing plants (mills), and so on over the next year or two.

For one thing, it is now pretty obvious that we will not have the 'global Armageddon' some were touting six months ago, and that prices will be headed in one direction for a long time - UP. That is due to the huge pile of paper money swirling around the globe - it will find a target in real assets. I believe the Chinese will be aggressive buyers of prime commercial property as well - it's sort of like a giant Monopoly game at this point - many very prime properties in major cities can be had for a big cash outlay, and can be refinanced later if needed at very low rates.

I'm buying miners, silver, gold and looking seriously at plucking some deep value from the distressed commercial REITs.

Distressing Details of the UltraShorts

>> Is there a class action lawsuit against these thieves yet? <<

Excellent question!!
How do we know the accounting is straight in these "ETFs"? Answer - we don't.

How do we know there is not a flaw in their methodology? Answer - we don't.

How do we know the people running these things are honest? Answer - we don't.

At this stage of the game, after Madoff, Cox, Thain, Cayne, Fuld, and assorted other crooks and scamsters have raped the market and/or the companies they worked for - what can you trust?

An ETF? Really? I mean, REALLY??

Is the China Growth Story Coming Unglued?

In my view, China will be a buy when the SSEC drops to around 1,500.

The fact that it is down around 50% is striking, but irrelevant. It soared to a ludicrous height, mostly on momentum and the unfortunate tendency of the Chinese to gamble with gusto, whether there is any basis to what they are betting on, other than optimism and a belief in their own luck or destiny or whatever.

The fact is that although many in China are doing very well, and there has been a dramatic economic surge over the last decade, the average company does not have a solid financial foundation and there is nothing resembling modern securities laws - just faith in the upward-ticking average to guide you.

I believe that many Chinese companies could fall very hard, and prove to be worthless or nearly so, in a severe downturn. I admit I don't know, but am just inferring and hypothesizing here - but it sure looks and smells a lot like the dot-com mania of 1995-2000; then the crash of 2000-to-2002 when many companies that were favorites plunged over 90%.