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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: seventh_son who wrote (30301)	8/13/2004 10:28:41 PM
From: Valuepro	Respond to of 39344

seveth, "I read an article a few months back that investigated clearances of gold from the second half of 2003 and concluded that the Chinese government must have been buying gold, in spite of their claims to the contrary." Yeah, that's probably right. I saw the same story and believe it. As we all know, monetarists can't be trusted. It's most obvious in formal devaluations where a country's chief financial officer will say the country is not going to devalue, and will keep saying so right up to the moment it happens. "The study of money, above all other fields in economics, is one in which complexity is used to disguise the truth or to evade truth, not to reveal it." John Kenneth Galbraith

To: seventh_son who wrote (30301)	8/13/2004 10:34:57 PM
From: Wyätt Gwyön	Respond to of 39344

wouldn't put it past the Chinese government to be secretly securing stockpiles of all manner of commodities. back in the late 1980s i remember hearing that the Japanese were buying up excess lumber, wrapping it in waterproofing and sinking it into Tokyo Bay. don't know if that's true or not, but shortly thereafter Japan's growth period was put to rest. as for "stockpiling" by the Chinese, it seems stockpiling is what one does when goods cannot be used immediately, unlike the situation today in China (except maybe in cases where Russ's trainwrecks are backing up supply lines). would be busy securing stockpiles of commodities using the over-abundance of depreciating US dollars that they hold. when they do that, won't they just accelerate the commodity bull and sink the USD all the faster--simultaneously raising UST yields since the money will come from selling their vast stockpiles of that useless commodity.