ManAboutDallas

All Investment Roads Lead to Commodities

Dr. Leeb.... something's up out there in Lending Land.... in just the past couple of days, I've started noticing banner ads for lenders who haven't been advertising for MONTHS.

Orchard Bank, the hi-rate card arm of HSBC, is back on the air. So is Ditech, the online arm of GMAC. GMAC ! Good grief.

A few others, as well.

Something's afoot, something just happened in the past week or so that's got lenders acting like they want to lend again.

What's your take on this?

All Investment Roads Lead to Commodities

China wouldn't be encouraging their citizenry to invest in gold and silver - and not just encouraging, practically begging - if they weren't doing well. Another great SA article recently laid this out, sorry can't remember by whom it was written.

The average American is devoid of any knowledge of history, as well as anything else, it seems. What the average American knows about China is "aren't they Communist, or something?" and is oblivious to the millenia of Chinese history, which said history reveres precious metals for what they are: repositories of stable VALUE.

The Chinese WANT their population to feel the effects of wealth, and owning gold and silver tends to induce that effect, doesn't it?

The next card the Chinese are going to play is this:
Now that the Hong Kong gold is being returned from Britain to the new vault in Hong Kong, watch for China to conduct a little experiment by pegging the Hong Kong Dollar to that gold; a little laboratory, if you will, to carefully watch what happens with a gold-backed currency. They they'll apply the lessons they learn to the Renminbi Yuan.


On Nov 12 09:56 AM bluesmoke wrote:

> Excellent analysis. Although I agree with your observations there
> remains one big wild card - is China really doing as well as they
> say they are? Granted, they have plenty of stimulus money to keep
> the party going for quite some time. But if China were to implode,
> all bets on commodities would be in question.

Friday Outlook: Commodities, Global Markets

The rally has one more upside target, using the Dow as proxy. That target is DJIA 10,344 which is the 50% Fibo retracement of the Oct 2007 top to the Mar 2009 bottom.

A nice two-week, 700-point Dow rally into mid-October will get the Chumps nice and buttered for the Toasting-to-Three-Thou...

Last year was just the warm-up act, boys and girls.

Global Markets in Review: Despite Cheer, Risky Assets Look Weary

The first applecart just got overturned in Japan yesteryday. The new Japanese government is going to completely unravel the cozy little relationship between the Yen and the Dollar and will, with the benefit of hindsight - say, 2 years from now - be seen as the economic Pearl Harbour that sealed the fate of the US$ to oblivion.

Now, like dominoes, the applecarts are going to be overturned, one by one, around the world.