LCACM

G20 Urges 'Balanced Global Demand'; China Says 'No'

The US voters need to wake up to perils that lie ahead caused by the huge trade deficits. A number of candidates in the Presidential primaries brought up these trade imbalance issues but did not get anywhere in the primaries. The voters preferred to vote for the media annointed Obama with help from super rich campaign donors. Now Obama has to worry about getting reelected and campaign funds. At this juncture it is safer for him to listen to the oligarchs and ignore Chinese trade malpractices, as he will be relying on the oligarchs to provide him with the necessary re-election funds. In return he will have to take orders from the oligarchs who profiteer by importing Chinese goods to take advantage of the US market.

How Low Can Mining Stocks Go?

China and India each have a population of over a billion, so the demand for commodities from these two countries will continue. Per capital consumption in these 2 countries is minimal and has room only to go up and not down. This will put upward pressure on the commodities in the next 5 years, inspite of the current crisis. Also the Central government in India has recently announced steep wage hikes as a result of the 6th Pay Commission. This will create confidence and a definite boost in commodity demand, in the next 12 months or so. So this is probably a great time to buy at these firesale prices.