Notes From Underground: Will the last person at Davos please sweep out the stables?
Yra | January 26, 2010 at 4:51 pm
All we can do is ponder why Davos is in the limelight again. This self-absorbed group is meeting of under the banner of the World Economic Forum again to discuss the problems of the global financial system. If we took a roll call, we would find that most of the attendees were the megalomaniacs who got us into this mess. Yes, we know that Nouriel Roubini and other doomsters are there to ensure some debate. But as always their views provide the comic relief of court jesters. Maybe these leaders of industry and all-right thinking will find new ways to look for aid from world governments after their ill-thought out plans go awry. Adam Smith himself warned of "Kapitalists" and their acts of subterfuge emanating from cocktail parties. Enough is enough, but we wished to put an end to the nonsense that is reported out of this Potemkin village of intelligent thought.
Paper Tiger Operation
CIGA Eric
The paper tiger operation on gold and silver continues to run stops and shakeout weak hands. State of the Union address, another series of large bond auctions, Fed meeting, and basic (interpreted as not the only) seasonal tendencies for gold & silver – see chart, adds up to shooting fish in barrel. Keep your eyes peeled for bearish gold comments from Prechter on the newsfeeds. It would seal the fate of another paper tiger operation.
Dear Jim,
Am I correct in saying it does not matter what the rest of the world does… only what the Chinese do? This sounds reasonable seeing as they are now the largest producer and consumer of gold (COT is toast and so is the dollar).
Best,
CIGA BT
Dear Big Tatanka,
You are 100% correct.
Regards,
Jim (Little Tatanka)
Chinese dig deep to join the gold rush
Sellers enjoy a golden period as demand soars, China named as the world’s biggest gold consumer
Tania Branigan in Beijing
guardian.co.uk, Monday 25 January 2010 20.04 GMT
The assistant pushed the red velvet sacks across the counter discreetly. The customer quickly slipped them into her bag. With a brief, nervous look around, she walked briskly from the shop, already clutching her car keys.
Few people feel comfortable lugging around a kilo of pure gold bars. But that doesn’t stop Chinese shoppers from thronging to Caibai, the number one place for buying the precious metal. The Beijing store’s 5,000 daily customers are at the forefront of a new gold rush.
Since 2007, when South Africa fell behind, China has been the world’s biggest gold producer. Now the World Gold Council and industry analysts believe it may have overtaken India – for centuries the dominant buyer – to become the biggest consumer too. The China Gold Association estimated demand would exceed 450 tonnes last year, up from 395.6 tonnes in 2008 (the actual figures are not yet available).
Dear Eric,
Japan lacks a plan?
What exactly is the US’ plan to rein in debt? What is the Brit’s plan to rein in debt?
Why does this look prejudice? This is a prime example of the kettle calling the pot black!
Regards,
Jim
Japan’s Ratings Outlook Cut on Lack of Hatoyama Plan
CIGA Eric
Japan’s sovereign credit rating outlook was lowered by Standard and Poor’s on concern Prime Minister Yukio Hatoyama’s administration lacks a plan to rein in the world’s largest debt load.
Clearly Japan remains the only country lacking a plan to rein in debt.
The yen pared gains immediately after the release, before resuming a rally
against the dollar.
Yeah that persistent Yen strength despite the prevailing consensus. The Yen has slammed into formidable gap resistance. It sits over price like an anvil. There’s some work to be done here, but I suspect the outcome will surprise the consensus.
Japanese Yen ETF (FXY): 
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Source: bloomberg.com
