Fighting Yoda

'Bubble-Mania' in Shanghai Spreads to Global Markets

China is trying to inflate – playing straight out of the US playbook. Yes they do have the money to do it but it is overheating the economy- they have huge surplus capacity and they are adding more- their own social pressures. China is simply playing the ‘beggar-thy-neighbor’ game – it is holding its currency down against the dollar. It might actually let its currency fall. Chinese currency has gotten hugely overvalued against the neighboring Asian currencies – that is a major problem for China.

China has managed relatively well, but it certainly is very export dependent to the West – which is in a Great Recession. Chinese exports are doing very poorly – down 30-40%. But for some reason – its imports of commodities are hugely up – that is simply a commodity bubble – that will burst very soon.

Overall there is no end in sight for the global recession – today’s job loss and ISM numbers is a clear and glaring reminder. So watch out both for commodities and equities – they have priced in a V-shaped recovery.

Multiple Warning Shots from China

Creditors will call the shots, not debtors.


On Jun 02 08:48 PM chopshop wrote:

> Today the Economic Times (India) spoke about the BRIC countries having
> talks about a common currency. What should be the chances of the
> United States and the Amreicas to join with a common currency????

Multiple Warning Shots from China

China will have to skillfully maneuver its position – geo-politically and financially. It is making the moves – currency swaps with Brazil and other Asian countries, promoting internal consumption – stimulus etc. China will come ahead.

Problem is for the US, after Japan it found China, it has to look for the next sucker – India?

Is the U.S. Dollar Headed for a Mighty Crash? Part I

We are certainly heading towards dollar debasement, just a couple of headlines today:
Timothy Geithner - "Obama administration is committed to reducing the federal budget deficit after concerns rose that the U.S. debt rating may eventually be threatened with a downgrade."
Pimco's Bill Gross: "U.S. eventually will lose its AAA grade. "

Strength of currency is dependent on credibility of the US Govt. and its policies. US has abused its power as issuer of reserve currency - world feels deeply cheated. Japanese Yen has appreciated from 300 Yen/$ to now 100Y/$ over last 20/25 years, how do Japanese feel. Same with China now - Yuan had to appreciate 20% in last 2/3 years. So our trade partners keep losing money by holding $s. They would realize the folly and engineer an exit - will not happen overnight, but China definitely is taking definite steps towards that.

Creditor nation’s currency are sought – that is how Britain gained and then lost its position, and now US too will.

New Bubbles Are Brewing in Shanghai and on Wall Street

So many bubbles, so little time.

Global Stock Markets: Surviving the Most Turbulent Week Since 1987

Bailout nation. Audacity of stupidity. This dynamic duo of Ben-Paulson have been wrong every step of the way. The bazooka misfired now they want a nuclear missile.

The wall street fat cats must be protected - that is the mantra of the country.

Get out and stay out these markets manipulated by the Govt.