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"Gold buyers, enjoy this!"

They could kill the gold market in 2 seconds. All they have to do is raise interest rates to defend the dollar and encourage savings. The odds of this happening in this administration or the next is as close to zero as anything gets in the politico-economic realm.

I get into arguments with people. "You can't eat gold," they say. Do they think you can eat a stock certificate? Do they think you can eat a $20 bill? Do they think the people in the Weimar Republic pushing wheelbarrows full of money down the street were on their way to a BBQ?

Very few things have real lasting value besides good land. And almost nothing is as ephemeral as the value of a stock certificate.

mock turtle

congress is investigating the influence of sovereign wealth funds on the operation of US banking.

America is soon to be "on the block" at fire-sale prices. Congress wants to close the door after most of the horses have left the barn. maybe we can still save a trusty mare or two.



IMO, China is going to find out that all the assets in Africa and South America that they are investing in will be nationalized when the locals riot as their poverty level standard of living goes down even further when they realize the wealth is being drained out of the country at their expense. There is no middle class in these countries, mainly just the impoverished and indentured individuals. The consumers of the food producing countries of South America are experiencing a significant rise in food prices and inflation as the wealthy export the agricultural products and mineral resources from their land.

Elaine Supkis

Teddy, China will happily prop up the governments and economies of the commodity nations. And cut US out. Indeed, this is their plan.


Elaine, it ain't gonna happen. Book it!


Jon Nadler at Kitco was also reporting that China was going to keep the price of carbamide and phosphate fertilizer steady. It could be raised if the cost was increasing, but only with the approval of the regulators. It appears that China can't feed itself anymore,and if so, how long will it be before the people of Brazil which is exporting soybeans and other food in massive quantity to China start to riot? You tell me. China also has a water shortage.

Elaine Supkis

The US has a water shortage in the South! Lucky for the West this last month's worth of floods and snow will replentish the water table which is very, very low.

Fertilizer: a problem for the US, too! And China already has deals with Brazil concerning their crops. They made this last spring when Hu visited. I blogged about it.

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