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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (25612)	1/31/2005 6:33:33 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 110194

Some common themes emerge as direct impacts from Chinese acquisition. • Rise in Canadian Dollar toward parity (with large cash infusions into Canada) • Legitimate strengthening of economies which sell to China (Canada & others) • Secure supply lines to China (possibly locking out USA at the margin, but also improving Canadian political clout) • Worsen rising production cost inflation to US Economy since metals and energy are largely imported to the USA (more of the same cost squeeze) • Little if any production cost inflation in Canada (offset from rising Can$) • No notable infusion of money supply inside US Economy (a non-player) • Withdrawn Chinese demand for US Treasurys and Mortgage bonds (possibly rising interest rates) • Bidding war on stocks for precious metals mining stocks, industrial metals mining stocks, energy stocks, and energy services stocks (large benefit to Canadian investors, negligible benefit to US investors) "Effects of Chinese Acquisitions" gold-eagle.com the most serious fallout will be rising tensions toward trade protection, sanctions, and outright trade war also, the USA will slowly be cut out of the supply chain as the Shanghai Coop Group takes root China, India, Russia, and Soviet Republics have banded together, now lobbying for Venezuela and Brazil to join / jim p.s. thanks for the plug