Posted on 09/07/2009 9:08:22 PM PDT by Baladas
TOKYO (Reuters) - Asian shares touched their highest level in a year on Tuesday, while gold futures hit $1,000 an ounce for the first time in six months on investor concerns about the sustainability of the global economic recovery.
With no direction from U.S. markets due to Monday's Labor Day holiday, it was a mixed start for Asian markets, with Australian shares climbing as a flurry of deals lifted hopes for a pick-up in merger activity, while Shanghai stocks were dampened by profit-taking.
The MSCI index of Asian shares excluding Japan rose to its highest in a year, gaining 0.8 percent on the day, while Japan's benchmark Nikkei index fluctuated between gains and losses.
Spot gold touched $997.20 an ounce, its strongest since February, with both simmering economic worries and longer term inflation concerns driving the gains.
(Excerpt) Read more at reuters.com ...
China has been buying gold for years, yet this writer acts like it's a news event: China's hidden gold purchase policy
There are a whole lot of commercial gold traders who are very, very, short. Any significant rise could wipe them out.
China alarmed by US money printing
"The US Federal Reserve's policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy."
Thank you for the link. So COT has taken on the government? Is that the point. I admit, my mind will be clearer in the morning.
It was reported by Blumberg that China was a singular client of Bear Stearns when it went down and was bought by JPMorgan last March. JP Morgan was reticent to take on the short positions (tens of thousands of contracts) until the US Goverment guaranteed them to be held harmless. It was only then that Morgan bought BS for $2/share. Now, worried about the FED printing, China has telegraphed that it is getting ready to walk away from its short positions because of Morgans Derivitive contracts which they presume the counterparties will fail to perform. If that happens, Gold will go vertical.
I feel like swearing. It’s all incestuous. I need to get some sleep. My prayers for all. Good night.
China, Bernanke, and the price of gold
Now, for sure, Good night all.
Can gold be eaten yet. I am waiting for the alchemist to turn gold into food. Then, I will buy, until then, I will plant for the future.
I suppose the same could be said of a 20 dollar bill. Your decision.
You are giving them too much credit. Don't expect China to bail out the world... they still use central planning... and Communism has never worked yet...
OTOH... the fiscal idiots running Washington ain't any better...
How can leaders think in 100 year terms? Imagine thinking about how to steer the US economy of 2009 from 1909. Sure the Lincoln penny was just minted but how could one prepare and plan for the automobile, jet aircraft, nuclear weapons, the internet, Social Security, etc. Can you predict the demand for commodities in 100 years or the effect curing Cancer has the Chinese population? Only Hari Seldon using Psychohistory could plan 100 years out.
China has been amassing gold for years. Couple that with their displeasure with the US deficit spending and we could be heading for some serious trouble.
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