Comments on: As America Frets, China Buys Stuff

By: no_credit_check_auto_sales

no_credit_check_auto_sales — Wed, 07 Oct 2009 07:24:10 +0000

Yep! I was agreed, I'll keep in touch to your blog.

By: no_credit_check_auto_sales

no_credit_check_auto_sales — Wed, 07 Oct 2009 04:24:10 +0000

Yep! I was agreed, I'll keep in touch to your blog.

By: max191

max191 — Fri, 02 Oct 2009 10:40:43 +0000

I was just going to relax and read this morning then in the meantime I got your blog to read. Really good one.
regards
charcoal grill

By: Loan Modification

Loan Modification — Mon, 09 Mar 2009 02:56:52 +0000

China are mentally on business. so I agree to them on trust on their idea.

By: gregor.us

gregor.us — Sun, 22 Feb 2009 12:54:25 +0000

We'll see that here in the States, Gregory. We're gonna see Stim Package 2.0 before the end of this year. The next Stim Package will probably overweight FDR style work programs, and we'll probably see more rail.

By: gregor.us

gregor.us — Sun, 22 Feb 2009 12:52:36 +0000

Sure. I remember it well. I was invested in Canadian Trusts on Halloween eve. I have followed that issue for years now.

But at least the Candian banking system is sound. There is no question Canada will be in major pain during the US bust. But, provincial autonomy is a sleeper dynamic that will prove great strength for Canada.

G

By: gregor.us

gregor.us — Sun, 22 Feb 2009 12:50:17 +0000

Soros is correct to be buying Potash. I track global fertilizer companies. Sure, NPK prices are way off the highs. They also are well above what they were.

If people thought food concerns were valid during the inflationary boom of 2004-2008, lets see what happens during inflationary bust. Arriving now.

G

By: gregor.us

gregor.us — Sun, 22 Feb 2009 12:48:23 +0000

We're getting close to the inflationary part of the bust. Busts like this build up initial inventory, then the inventories get run down. Governments print money to solve the problem, which makes things worse.

The late 1990's saw Schumpeter's deflationary boom. During inflationary bust, there's no profit motive in producing things. Oil is a good example. So supply crashes along with demand, until you find a newer equilibrium level and then we overshoot. Look at how oil is behaving. It can't maintain itself below 35 and it can't sustain above 45. When oil rises next--and that may not be for some time as we are indeed in a global industrial depression--the rise will not be gentle.

Yes, we have the ability to significantly raise production of grains here in the States. We also have decent water supply (though the CA central valley is an ongoing concern). And we do have coal but even in coal we see the whole easy coal issue coming into play. Eastern thermal coal, rich in BTUs, is no longer easy.

G

By: gregor.us

gregor.us — Sun, 22 Feb 2009 12:41:20 +0000

The stunner is that as China buys oil, base metals, coal, and precious metals, even traders here in the West rush into government bonds, and think “gold is a bubble.”

By: gregorylent

gregorylent — Sat, 21 Feb 2009 21:43:43 +0000

another little trick china did last week to reduce consumer savings, and increase local cash flow, was to decide to pay 5-10% of local government employee's salaries in vouchers, exchangeable at local stores for food and supplies … i know it happened in hangzhou and chengdu and a few other cities, not sure about the rest of the country at the moment ..

seems a smart idea