Hi Guys, Price movements are pretty awesome are't they ..... I been watching "god forbid" CNBC and Bloomberg and it seems Hu Jintao and Obama want to work together. As we can see the issue at the moment is that the Bernanke Money printing hasn't created jobs though it has solved half the problem, which is to prop up the markets. Now with the assistance of Hu Jintao and china opening many many businesses in America, this will translate to many jobs created in America. Something America desperately needs. Yes you wont have an ALL American business anymore but hey, beggers cant be choosers. When you need a job you take anything. Does anyone think this would be a viable option that could actually keep americas jobless rate from rising and rising ? If china keep opening businesses then it will create more jobs. Does anything think this is a viable solution ? The main point is China needs America (for now) as much as America needs china. Reason being is that 1. China has many of its savings in American Treasuries 2. Since America is a major consumer if America tanks and cant afford goods anymore china doesn't make as much money, SO its in china's interest that Americans can continue to spend China needs to make sure that they are protected from both these problems at the moment. Could this affect the price of silver and its recent downward movements. That this agreement between China and America is actually a Road to recovery ? Second Thought of recent price movements..... My other thought is a little different, could china be helping America with these recent announcements so that it keeps America afloat just long enough to sell its massive holdings of treasuries and buy proper hard assets. If JP morgan is shorting some of its silver for China @ china's request (as some believe) could it be that the reason is so china can start buying up more silver in exchange for its treasuries (ie implementation of point 1, so that it doesn't have so many more US treasuries and is slowly moving away) which could be another reason for the recent price pushdown. China was a massive producer of silver and an exporter and it also has many mines so if it uses JP morgan as the instrument to short its production that could be the reason why prices are so low (so that the physicals can be bought) In light of the recent announcements of Hu Jintao and Obama prices have started to drop ..... These are just some of my takes of various information that i have read, anyone care to comment on what they think ?
The US and China aren't joined at the hip because of the trade imbalance. And they don't owe each other favours. At any time they want to, the Chinese can trade their US dollars for any other currency they want. In fact that's what good business sense would dictate. At some point in time you'd look at your huge pile of cash and conclude it's not doing you any good just sitting there, time to spend it. But they're not, they're stacking $US for political clout. China may have the biggest economy, but the US is still the richest. The chinese are manipulating the $US as much as JPMC are manipulating the price of silver. But just like the silver manipulation...and can't go on forever.
History gives us the Suez crisis and the decline of the Pound as world currency. I still think that US is apologising to China for a forthcoming devaluation of the dollar and the chinese are extracting their percentage loss in kind so that they don't get too upset later. Stiff the rest of us.
Thanks for posting. Slight OT, but big mention of Australia in the article: ----- In that regard, going forward I believe China's monetary/ economic moves will focus on two areas: 1) Shifting its reserves away from the US Dollar 2) Shifting its trade focus away from the US economy Regarding #1, over the last five years, China has been on a mega-buying spree of natural resources. Because of its close proximity and natural resource riches, Australia has been the primary focal point of these efforts. Indeed, the below list compiled by The Australian represents just a handful of China's moves in this regard: March 2007: Shougang Corp steel group spent $56 million buying 13% or iron ore developer Australian Resources and agreed to fund $US2.1 billion development of the Balmoral South project; July 2007: CITIC spent $113 million lifting its stake in Macarthur Coal from 11.6% to 19.9%; September 2007: Queensland government awards Chalco rights to develop $3 billion bauxite project near Aurukun; September 2007: Anshan Iron & Steel paid $39 million for 13% of Gindalbie Metals and signed $1.8 billion joint venture deal to fund Karara iron ore project in WA; January 2008: consortium of five Chinese companies given FIRB approval to fund $3 billion Oakajee port and rail project in WA; January 31, 2008: Shougang Corp spent $400 million buying another 20% of WA iron ore company Mt Gibson Iron, but has since been forced to sell for breaching takeover rules; January 25, 2008: Sinosteel spent $100 million for more than 10% of WA iron ore hopeful Midwest Corp; February 3, 2008: Chinalco spent $15.5 billion for 9% of Rio Tinto shares in London; February 26, 2008: China Metallurgical Group announces proposed $400 million acquisition of Cape Lambert Iron's namesake WA project. CMG already owns 20% of nearby $5 billion Sino Iron Project; April 28, 2008: FIRB approves China Petrochemical Corporation paying $600 million for 60% control of the Puffin oil field in the Timor Sea, the first time a foreign government has operated an Australian oil field; April 29, 2008: Midwest board recommends agreed $1.36 billion bid from Sinosteel priced at $6.38 a share. Again, I want to stress that list represents just a handful of China's moves in the natural resource space (my own research shows China grabbing as much as $20 billion worth of Australian resource companies from February-April 2009 ALONE). -----
China, like pretty much any country would not to outwardly collapse or try to collapse the economy of another nation, US or other. For the primary reason it would adversely affect their own economy. Just like Australia could hurt the Chinese economy badly by banning all resource exports. The result would be a shrink in Chinese GDP for sure but also a shrinking of Australian GDP.
And we are being paid by China in US$ for the sales.... so the Aussies are selling the land to China for US greenback toilet paper!!!!!! Regarding #1, over the last five years, China has been on a mega-buying spree of natural resources. Because of its close proximity and natural resource riches, Australia has been the primary focal point of these efforts. Indeed, the below list compiled by The Australian represents just a handful of China's moves in this regard: March 2007: Shougang Corp steel group spent $56 million buying 13% or iron ore developer Australian Resources and agreed to fund $US2.1 billion development of the Balmoral South project; July 2007: CITIC spent $113 million lifting its stake in Macarthur Coal from 11.6% to 19.9%; September 2007: Queensland government awards Chalco rights to develop $3 billion bauxite project near Aurukun; September 2007: Anshan Iron & Steel paid $39 million for 13% of Gindalbie Metals and signed $1.8 billion joint venture deal to fund Karara iron ore project in WA; January 2008: consortium of five Chinese companies given FIRB approval to fund $3 billion Oakajee port and rail project in WA; January 31, 2008: Shougang Corp spent $400 million buying another 20% of WA iron ore company Mt Gibson Iron, but has since been forced to sell for breaching takeover rules; January 25, 2008: Sinosteel spent $100 million for more than 10% of WA iron ore hopeful Midwest Corp; February 3, 2008: Chinalco spent $15.5 billion for 9% of Rio Tinto shares in London; February 26, 2008: China Metallurgical Group announces proposed $400 million acquisition of Cape Lambert Iron's namesake WA project. CMG already owns 20% of nearby $5 billion Sino Iron Project; April 28, 2008: FIRB approves China Petrochemical Corporation paying $600 million for 60% control of the Puffin oil field in the Timor Sea, the first time a foreign government has operated an Australian oil field; April 29, 2008: Midwest board recommends agreed $1.36 billion bid from Sinosteel priced at $6.38 a share. Again, I want to stress that list represents just a handful of China's moves in the natural resource space (my own research shows China grabbing as much as $20 billion worth of Australian resource companies from February-April 2009 ALONE). -----
This is really interesting.... Especially the comments on the internal economy. http://www.wimp.com/viewworld/
^^^^ - Thats a GREAT video And the HD quality was awesome BTW No but i would say this is a different case. Reason being America is openly and outwardly killing of China's savings (not to mention everyone elses) by printing money and china is just reacting just as we are. We buy silver and gold to protect our savings, china is TRYING to do the same but at a much much grander scale. As many people have said the only reason i guess china doesn't just do a dump of the us treasuries is cause it would also effect their value in a negative way (hence killing chinas savings) so china has been doing it covertly it seems (from the article above). By doing it covertly it gives the wastelands that we call the Fed a chance to print the money to buy up those debts that are being dumped nicely and slowly by china (so that its not to noticeably to the general public) China is also experiencing inflation because of the PEG that they have to the USD...so thats just another unhealthy aspect to the china and american relationship, all this talk of working together could be china buying time to fully divest in US treasuries and America clutching at straws to make a recovery. Seems its working in the short term, looking at the price of silver but if china is bent on getting rid of US treasuries we should see a massive shoot up of silver soon as things start to hit the surface. In terms of Australia and china, there is no reason Australia would want to stop selling to china, as far as i know its a healthy relationship for both parties.....
Maybe one of scenarios: 1st step-China influence price of silver, and price drop, government buy it, they make 100t Pandas and others, sell on domestic market for 20usd difference per coin and keep the profit, price of silver raise again, silver stays in China, if silver stackers sell it outside China they got nice profit, and more cash come in China. 2nd step- do it again step no 1. 3rd- most of silver is in China again, government not need to invest in silver reserves and they make huge profit in this cycles.
