>>Why would China growth reverse to decline in 2009 when they'll still use a tiny fraction of the commodities the West uses per capita and the World Expo is there in 2010?<<
Believe it or not, plenty of infrastructure construction is due to 2008 Olympic Game, not just in Beijing, but in Tianjin, Shanghai, even QingDao of Shandong Province... So after 2008, there will be no more hype. 2010 World Exp. is just a regional event in Shanghai, there is NO national pride involved with it<g>
Per capita consumption of commodities in China will never catch up with the West. What will happen is that the per capita consumption in the West will go down, and it will increase in China, India, and other developing countries. This is so-called rebalance.
Besides, up to now, most of commodities China consumed is NOT for Chinese own use, it is for exporting, mostly exporting to EU and the US. As I said, China will have a tough time ahead to boost their own consumption.
R321gold.com is commodity bull site, so it wears a pair of rosy glasses and tend to be over bullish<g>.
>>MMGG dropped from over $5 to $1.50 in 4 months primarily because of the selling/liquidation...<<
The way I look at is that MMGG went from <$1 to close to $6 in 5 months without much solid news, so it is natural for it to go back down<g> After its lising on AMEX, I will be happy if it can stay >$3<g>
>>Meanwhile, zinc broke out to new record highs and the stock had its application to get on a legitimate stock excahnge approved. A quick recovery of less than half of the loss from the high when fundamentals have improved dramatically from then does not indicate a "bubble".<<
I have seen some junior mining companies listed on AMEX have a stock price of $1 or so for a long time. So AMEX lising does not mean much unless they have some solid good news, and then some institutions will buy it as an investment.
>>Yep, there's still an enormous amount of growth left for China in the coming decades so most of the ordinary Chinese can get some of the benefits of a Western lifestyle.<<
In practice, it will take a long time to redistribute the wealth and some struggles among dif. interest groups. |
