Wednesday, September 02, 2009

You got a nice white dress and a party on your confirmation, You got a brand new soul,mmmm, And a cross of gold, But Virginia they didn't give you quite enough information

Something you won't hear in mainstream media who is entertaining and pitting American vs American in ideological battles.
  • The biggest market drop in 15 months seems to be because the institution investors in Shanghai decided to initiate a big sell off.  The Shanghai index is largely off limits to foreign investment.  It's grown over 50% this year, and now has contracted 23%.  What it certainly means is that we as a nation are losing the ability to hedge.  At one point we were the Atlas that the free world could trust for growth and stability, we've lost that trust, time will tell if we'll ever get it back.
  • Anytime something big is purchased on credit, (house, car, lots of consumer debt) it gets bundled into collateral, which usually lands in a US Treasury bill, which most of the world owns at a cool return on investment percentage.  China has a 1.7 trillion dollar credit, if our tbills don't hold their value, we both lose.
  • Our money machines in this country are going overtime printing money.  The reason, someone has to spend, we can't just act like their aren't any implications to the mass consumerism stoppage.  China sees our printing presses going and does the same but in double time, thus begins their transition from a more export based economy to a more consumer based economy.
  • China has been looking outward since the 70's, after a very sad history century under Chairman Mao.  China Road is an excellent book that catalogues all the onion layers of the developing nation as they integrate their people and religions; Confucianism, Islam, Buddhism, atheism and the rest.
  • Opportunists have been heading east, people who strive for stability have been heading for the Euro
  • A quote from China Road goes something like this, "We've ran the race and reached our destination and now have poured ourselves a big cold one, out east, the journey is just beginning"
It's something our great nation is forgetting, "Live together, Die Alone"

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