Tangible is Better Than In-Tangible


Tangible is Better Than In-Tangible
04-30-09
mpg

'China cancels America's credit card'
Special Note -- Some quotes...."China, wary of the troubled US economy, has 'canceled America's credit card' by cutting down purchases of debt, a US congressman says. China has the world's largest foreign reserves, believed to be mostly in dollars, along with around 800 billion dollars in US Treasury bonds, more than any other country. But data from the Treasury Department shows that investors in China have sharply curtailed their purchases of bonds in January and February."  --  ""It would appear, quietly and with deference and politeness, that China has canceled America's credit card," Kirk told the Committee of 100, a Chinese-American group." -- also posted at AtheoNews

It's true that China is wary of the US-NRE's ability to pay back what it spent so profligately, but they're also using their savings to buy something that has more real value than the dubious little bits of green paper and debt instruments which pay no interest and are backed solely by the "promise" of the seller (and we ALL know how much that's "worth" these days)....it's called commodities.

Actual, valuable, tangible goods like gold, oil, coal, copper, iron, cobalt, nickel, etc. which are priced pretty cheaply these days because the self same idiot country trying to pawn off all those bits of paper, managed to also trash the entire world's economy with even more worthless bits of paper called derivatives.

It only makes good business sense, assuming the world avoids another decades long Depression, for China to lock in long term commodities contracts while those bits of paper still retain some of their value and while prices for commodities are still relatively cheap. - mpg

For more articles on this issue see below....
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China takes steps towards full convertibility of the yuan
Must Read - Financial Warning -- A quote...."China recently announced a series of measures to protect its economy against a possible devaluation of the US dollar by decoupling the Asian currencies from the American currency and using the Chinese yuan to gain access to raw materials from South America, the Caribbean and, most importantly, Russia. -- The Chinese government has serious reasons to be alarmed. As the financial crisis deepens and the US debt multiplies to unprecedented levels, the possibilities of the US dollar failing to maintain its privileged position as the world reserve currency are very real." - posted 05-07-09 -- also posted at AtheoNews

Defying the Economic Odds - The World Melts Down, China Grows
Special Note - It's AMAZING isn't it, a country that isn't bombing and torturing everyone on the entire planet and is instead, concentrating on establishing a premier industrial economy (to the un-educated that means they're making things) and guess what?  Their economy is growing....well heck and tarnation, who would'ol thunk ol'that??? – mpg -- A quote...."In the midst of the worst economic crisis since the Great Depression, a new world order is emerging -- with its center gravitating towards China. The statistics speak for themselves. The International Monetary Fund (IMF) predicts the world's gross domestic product (GDP) will shrink by an alarming 1.3% this year. Yet, defying this global trend, China expects an annual economic growth rate of 6.5% to 8.5%. During the first quarter of 2009, the world's leading stock markets combined fell by 4.5%. In contrast, the Shanghai stock exchange index leapt by a whopping 38%. In March, car sales in China hit a record 1.1 million, surpassing the U.S. for the third month in a row." -- posted 05-04-09

A 'Copper Standard' for the world's currency system?
Special Note - More likely a commodity standard.  After sixty years of watching the US-NRE crapping all over the entire world with its Dollar whenever it choose to do so, China has decided to take out some insurance to protect itself if the Fed/Bankster/Obama administration can't - or more likely won't - support the dollar when things begin to get tough. - mpg --A quote...."Hard money enthusiasts have long watched for signs that China is switching its foreign reserves from US Treasury bonds into gold bullion. They may have been eyeing the wrong metal." - posted 04-17-09 -- also posted at BLN

China fears bond crisis as it slams quantitative easing - posted 05-08-09
Beijing accumulates minerals to substitute the dollar with the Yuan - posted 05-08-09
Kazakhstan, China strike nuclear deal - posted 04-30-09
China Increases Gold Reserves 76% to Fifth-Largest (Update4) - posted 04-24-09
Russia, China sign oil deal, start new pipeline branch - posted 04-22-09