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China, Economy, Gold, Headline »

Money & Gold

It’s pretty interesting reading the various reactions and commentaries on the internet these days following the announcement of how the Fed will be implementing QE2 – I mean, how the Fed will be running the printing press, of course.  There is absolutely a larger and more harsh reaction to this round of quantitative easing than the previous one.
Interestingly, some big names in the financial world are even making noise about returning to a gold standard.  Coupled with this rhetoric in many cases are calls to end the US dollar as …

China, Headline »

Don’t Underestimate China

When it comes to the relationship between America & China, it can be summarized as follows:  We buy cheap goods from China with money we borrow from China.  Essentially, we consume more than we should be able to because we fund our consumption with borrowed money – much of which comes from China.  China accepts this arrangement because it employs a gazillion Chinese people who produce goods to export.  China underconsumes and exports more than they should be able to because they’re loaning us money as stated above.  Make no …

China, Economy, Politics »

Chinese Currency Appreciation Evidence Of Major Trend Unfolding

Our fearless politicians here in America have a habit of pounding the table over “Chinese currency manipulation.”   While that term might make your eyes glaze over, I assure you that this is something to which you should actually pay attention.
The concensus in most developed countries is that a weak currency is good since it stimulates exports and brings money into the country.  The result then is a race to the bottom, where there is literally competitive devaluations.  In tandem with this course of action is the anti-Chinese rhetoric demanding that …

China, International »

China “reassured” the global economy that they had no intention of unloading European debt.  While the market on Thursday responded to this by jumping a few hundred points on the Dow, I believe people are overreacting somewhat to this “good news”.
If you hold a significant chunk of an asset, say some European debt, would you announce that you plan to sell it before actually selling it?  Obviously by announcing your intentions, you would result in many other parties attempting to sell before your do.  The obvious result would be a …

China »

[24 May 2010 | Comments Off on An Excellent Summation Of My Views On China | ]

This is written by David Rosenberg as noted by Zero Hedge:
“With the world stuck with the USD as a reserve currency, the question is how much more monetization and QE (and make no mistake, the Fed will be forced to do more of both of these activities) needs to occur before people give up on the greenback. And for all those who question what could possibly take the place of the dollar as the world reserve currency, we would like to point out that any country that has a massive …

China »

[12 Mar 2010 | Comments Off on Ghost Towns (and Malls) In China | ]

An entire city built by the government in China is empty. A clear example of the disaster of non-market driven projects.

The following video shows the world’s largest mall called the South China Mall. It has over 1500 stores, and almost all are… completely empty. A colossal commercial real estate debacle.

While I’m definitely bullish on China over the long term (real long term), there are definite bubbles and massive misallocations of capital and resources that need to be worked out in China. Follow my China investments on …

China, Economy, Politics »

The following video was shown today on Yahoo’s Tech Ticker:

So, what’s the point in showing this video? Why do I try and convince people that America is in trouble? Is it because I’m against American power? Absolutely not. Instead, I’m trying to convince people that if America does not change her policies, we will be in trouble. We’re heading down a terrible path and we need to change course.
At a high level, this is what needs to happen for America to change course:

Get our fiscal …

Careers, China »

The Huffington Post has an article out regarding the trend of young Americans looking for work in China.  This is an example of a trend I am a firm believer in; namely that China will be the land of opportunity both in the present and in the future, much more so than America.
There are many reasons for this but they can be summed up by the statement that China is much more pro-growth than America.  Whether it is tax policy, government regulation or targeted stimulus money, China’s communist government seems …