Sol Palha

China's Economy: All GDP Is Not Created Equal

The fact that so many Chinese are poor means that they have that much more room to expand. When your back is pressed to the wall and you have nowhere to go, you usually try your very best to advance forward, even though it might just be a few Centimeters at a time. The Chinese are very patient and think in terms of decades and not days and months like most westerners do. Given their propensity to work hard, their desperate desire to improve their lives and those of their children, the long term picture is extremely bright for this country.

Here's Why Asia Must Eventually Ditch the Dollar

The Chinese are advanced chess players, and they are planning for the future, say some 30 plus years away. To most this time span is simply too far away to focus on but not to the Chinese. At some point in the future, if America does not change its way, then the dollar will follow the same Path the sterling did and eventually be replaced by some other currency. Leap frogging 30 years into the future, it seems that the most viable option would be the Yuan.

Use Currencies, Commodities to Hedge Inflation

I am not sure what dictationary or what reference book the individuals who claim inflation is defined as increase in prices are using but the defintion is was and will always be an increase in the supply of money.

next issue. One can take on debt when and if one has money flowing in but if you are in a situation when jobs are hard to come by, salaries are not increasing and credit markets are frozen then just how do you plan on paying of your debt even if you are going to use inflated future dollars; note you continue to pay interest on this borrowed money and eventually rates will rise and they will rise at a very fast pace.

Finally one is advised to cut down debt but use this money to deploy into commodity based assets and not put this money under the mattress or in the bank.

In terms of USO and the other ETF's that were mentioned; there are far superior investments to these ETF's and this fact was mentioned in the article but when one gets into specific stocks and or futures contracts the time frame is different and one needs to monitor these investments rather closely as oppossed to ETF's where a more relaxed approach can be taken. As we are dealing with the public the easiest method is to list ETF's, sophisticated traders can purchase stocks that emulate the suggested ETF's.

As for the currency ETF's it would generally be wise to add to one' position till the commodity bull coms to an end. One can use simply trend analysis. Trend analysis should be done on 6 and 9 year charts so as to avoid all the noise that the shorter term charts produce