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A Wall St. Economist on the U.S. and China

I've seen some interesting takes on China of late, but two stand out to illustrate economic versus political analyses of the Sino-American relationship to date. An economic shot at the title is Prof. Dani Rodrik's latest China piece at TPMCafe which recommends that China directly subsidize its manufacture of tradables while removing its controls on the value of the Yuan as a means of stimulating domestic consumption. I'm wondering what tradables he's referring to...which products? One commenter there asks.

The other piece is at Analystblues, www.analystblues.com and it questions the lack of level playing field leading to today's imbalances between China's regime centered economy and the US's relatively free market economy (less so every year). Specifically:

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When we discuss debt, perhaps we are failing to see China's role in the US economy in recent years as a repayment for decades of US accommodations, concessions, permissive engagement, etc. and not as a set of investments or loans the US should be responsible for repaying now that it has stretched itself out over the world to play security specialist for world powers who have benefitted from it, but have not shared the bill.

Wall Street Breakfast: Must-Know News

Deal with reality, and improve on it. Matching our emotions with bad news does not deal with it, however, artificially enhances the problems via perception. The first thought should be, okay, as an investor, how will I safeguard what I have and find ways to increase my gains across the board in my own micro or family economy? Put together a comprehensive plan.

Study, clear thinking, patience, care, precision, balance ... the same values apply to wise decisions. If we want value, we must build it.

The Best Safe-Haven Investments, and Some Potential Threats

In other words, buy your gold. Got it.

Ceradyne Offers Example of Risks/Rewards of a Put-Write Strategy

Disclosure: I have several shares in CRDN Ceradyne. I'm pleased to hold them. Research shows that during the halcyon days in Summer 07 at $84, with flush defense contracts, CRDN was already actively expanding to diverse civilian markets for advanced ceramics in China, Europe and the US of which there are many, many applications. Founder Paul Moskowitz is an advanced ceramics engineer dedicated to the quality of his company's output. One reason for the drop I believe is CRDN's guidance which was very conservative. Before the 2008 devaluation in CRDN's stock price, my research found that Moskowitz and his officers have not only been ethical in diversifying (not tying company profits to war alone) but ethical in conservative forecasts that protect investors. That the US military may order fewer Bull's or MRAPs and body armor in the short run is a dot on the board, but even if world peace broke out forever, advanced ceramics will grow to reduce heat buildup in many, many green-centric and econo-centric ways. The market outlook, combined with CRDN's ethics and the fact that even Mr. Moskowitz's political campaign contributions have not been tied exclusively to folks influential over his industry, specific but principle-driven tells me that this man is a sound political as well as economic guardian of his company. Blowback is unlikely here. More later.

Bullish on Altria Breakup - Barron's

The notion that you should even consider investing in cigarette production companies indicates a fundemental ethical lapse.

Sector Strength in Materials, Weakness in Biotech

Biotech weakness has to do with DNDN Dendreon Corporation's free fall. That sort of thing causes jittery investors in other firms to follow the herd at times. It isn't necessarily rational.