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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: nspolar who wrote (7845)	5/13/2007 4:37:10 PM
From: Hawkmoon	Respond to of 33421

Falcon, Reference the theory I have about China, I think it's valid so long as currency controls exist for the Yuan. It's scary to contemplate that the total value of the Shanghai stock exchange represents more market cap than all the other Asian markets combined, including Japan. But so long as Bejing can prevent the global Forex traders from pumping up the value of the Yuan (making exports from China more expensive), it's going to keep climbing until the majority of Chinese people find out that they are the "greater fool".. Then, Katie bar the door!! As for gold being the ultimate basis for monetary stability, I've just never subscribed to that theory. Since the price of a fine suit has historically corresponded to the price of an ounce of gold, then it would be just as germane to assert that the price of men's suits should be the basis for valuing monetary stability. I simply have never understood how people can assert that the total amount of money (economic value) should be assigned to a finite shiny yellow metal that is dug out of the ground. Soon the supply of readily available gold will have been mined from the earth. So does that mean we can't print any more money? Or were the economic backwater of Afghanistan suddenly to discover a tremendous gold deposit worth Trillions of dollars, would that suddenly suggest that their economic policies are worthy of a far stronger currency comparable to the Euro or USD? That's just silly.. It would, as many of these other countries who have discovered valuable commodities within their boundaries, merely reflect the value of that commodity and the economic potential for its exploitation. But once the commodity has been fully exploited, the artifical basis for valuing their money would disappear. Hawk