Hi Russ, First, my tale of the gold hunt … Message 19591980
Then, on to this puzzle ... <<Exporters are bringing back ever bigger dollar receipts and banks, according to the Bank of International Settlements, are repatriating funds and seeing more domestic deposits.>>
… a local businessman friend told me that the government has promulgated via the Communist Party network (the network works well in that it gets the message out, but does not require the use of the media) a new amnesty policy whereby folks can repatriate as much as they want from offshore accounts and can bring as much unexplainable cash into the banking system and never have to account for where the moolah came from or whether taxes were paid on the bread.
If so, then it would appear that (a) the government wants to bring money home, and into the open, and (b) is not particularly concerned about the effects of the deluge, including <<the fastest rate of inflation in 6 1/2 years>>
They in effect seem to welcome inflation, courting it with gusto.
If we believe Chinese government priority is the Chinese economy first, and that Chinese peasants have lagged in income increase vis a vis the city folks, then perhaps the 700 mm laggards are about to get a ‘keep quiet and docile’ distribution of bread.
If so, then between Chinese food and energy shortages, the items that the Maestro Greensputin explicitly does not care about, and Chinese money-printing, at which they are more adept than Professor BurnAndKaput ever could, I think resource shares and gold will continue to be a good bet, as in NToeAwsBe achamchen.com .
Chugs, Jay |
