Quote After QE2, analysts were looking for possible consequences of the Federal Reserve Bank's actions. What has become apparent is that the Fed has created another bubble in China. Investors globally have transferred devalued U.S. dollars and Euros to buy Chinese property and equities. China has had to combat imported inflation with rapidly rising asset prices. An influx of capital has caused a real estate bubble, a rise in costs of basic goods and excessive speculation in the commodity markets. The Chinese Central Banks will be observing the inflation data which should be coming out this weekend and will be compelled to act aggressively to prevent China from a bust similar to the housing crisis which occurred in the United States in 2007. Yesterday's IPO's showed that irrational exuberance is here once again, none since I have witnessed since the late 90's "------- ..... " Month after month applications to start real estate operations from foreign entities are doubling. "...... ..........." t would be naive to think that a surprised hike in rates and a downturn in China would not put pressure on gold and silver. Gold (GLD:NYSE) and silver (SLV:NYSE) are beginning to show signs of bearish reversals after a powerful move. Open interest in gold futures peaked on November 9th, a major reversal day. A tightening policy in China could keep buyers away for a significant amount of time or until prices come down to a more reasonable level. http://www.kitco.com/ind/Handwerger/dec102010.html Last edited by Peter (Today 09:13:45)
China will import over 200 tons more gold this year than they did last year. And that is alone nearly 10% of the world totlal output for 2010.
