There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.
- John Adams, 1826
Jim Sinclair’s Commentary
Illustration number 3 of the Skier will without any doubt will occur.
Consumer confidence plunges, expectations dive
By Ruth Mantell
Aug. 30, 2011, 10:00 a.m. EDT
WASHINGTON (MarketWatch) — Consumer confidence plunged in August as expectations dived, with worsening views on future business conditions, jobs and income, the Conference Board reported Tuesday. The nonprofit organization said its consumer-confidence index fell to 44.5 in August – the lowest level since April 2009 — from a slightly downwardly revised 59.2 in July. "A contributing factor may have been the debt ceiling discussions since the decline in confidence was well underway before the S&P downgrade," said Lynn Franco, director of the Conference Board’s consumer research center, in a statement. Economists surveyed by MarketWatch had expected an August reading of 51.9. Generally when the economy is growing at a good clip, confidence readings are at 90 and above. The expectations barometer tumbled to 51.9 in August – the lowest since April 2009 — from 74.9 in July, while the present-situation gauge fell to 33.3 from 35.7.
Jim Sinclair’s Commentary
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Jim Sinclair’s Commentary
While the West kicks the can down the road, China buys Africa.
Renminbi may replace dollar in Sino-African trade
In a sign of China’s growing influence as Africa’s largest trading partner and investor, Standard Bank estimated that up to 40%, or $100bn, of China’s trade would be denominated in renminbi by 2015.
SURE KAMHUNGA
Published: 2011/08/30 06:40:31 AM
CHINA’s renminbi could replace the dollar as the main currency to finance trade between Chinese and African countries, research by Standard Bank shows.
In a sign of China’s growing influence as Africa’s largest trading partner and investor, Standard Bank estimated that up to 40%, or $100bn, of China’s trade would be denominated in renminbi by 2015.
This amounted to more than the total Sino-African trade last year, the bank’s Beijing-based economist Jeremy Stevens said in a research paper released yesterday .
"In addition, at least $10bn of Chinese investment in Africa will be denominated in renminbi over the same period," he said.
The Chinese currency already accounts for 13% of the South African Reserve Bank’s trade- weighted exchange rate for the rand, making it the third most important currency in the basket. Mr Stevens said China had no intention of "dumping" the dollar, but merely wanted to broaden its currency’s geographical reach and allow the renminbi to be used for investment purposes.
