GOLD UPDATE AND COMMODITY LIVE PRICE
Hyperinflation And The Fiscal Case For Gold
Many of us have seenthe doomsday charts showing money supply of all definitions skyrocketing overthe past few years.
These charts aloneprovide a compelling case for owning gold (GLD), as the risk of an inflationarytidal wave taunts us. However, with the bulk of monetary stimulus stuck in aliquidity trap gold investors sit and watch and wait.(DETAILS:http://seekingalpha.com/article/293312-hyperinflation-and-the-fiscal-case-for-gold)
Wen Jiabao Says ChinaWilling To Extend Help To Europe... For A Price
Whenin doubt, recycle... In this case the rumor that China would bail out Europe isabout to get second billing. From Bloomberg, quoting Wen Jiabao at the DalianWorld Economic Forum:
- WEN SAYS CHINA WILL CONTINUE TO INCREASE INVESTMENT IN EUROPE
- WEN SAYS CHINA IS WILLING TO EXTEND HELP TO EUROPE
Granted,nothing new here, and it simply means that China will be happy to buy Europeanassets at firesale prices and invest in 20%+ IRR projects, but the algos, whichhave not yet seen this news, are expected to kneejerk higher, regardless of howshort the latest intervention halflife will be (recall that China already hassizable investment in Greece, Portugal, the EFSF and the EUR). Call it what itis - doubling down, all over again. That said, the bailout for Europe will notcome free, and once that realization hits the market, this may have acompletely opposite reaction that the one intended...
0 comments:
Post a Comment