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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (33376)	4/18/2008 9:04:51 PM
From: Cogito Ergo Sum	Read Replies (2) \| Respond to of 220281

We've been well insulated up here until the loonie peaked and has been rangebound... Now we are tracking the US inflation more closely despite what the government thinks.. Gas 1.20 / liter today. It is a much more recent development though.. The AUD seems to be stronger than the Loonie so you are still being better insulated than us.. We will be lowering rates in close lockstep to the States since we are so US dependent for trade even net of resources ..

To: Moominoid who wrote (33376)	4/18/2008 9:52:49 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 220281

Governments are the problem, not the solution. It's richly ironic how the "save the world" biofuels mob is helping cause starvation. The law of unintended consequences as a result of ignorant but enthusiastic action is alive and well. Mqurice

To: Moominoid who wrote (33376)	4/19/2008 4:17:53 AM
From: elmatador	Read Replies (1) \| Respond to of 220281

Once a certain process is set in motion, it becomes hard to predict how it develops. We have lessons of the past, the human nature, (meaning how men typically respond to what is happening around them) to serve as guide on how the process moves and changes directions as it goes along. It was not supposed to be that cheaper money thrown around by AG would end up channeling said money towards the rest of the world. This time the consequences will be felt for half a century. In the past that money would be recalled by jacking interest rates, causing 'flight to quality' sending the rest of the world into recession and drying up the market of that money. This time it developed in a totally unexpected manner. There was no 'flight to quality'. Money staying there firmly put. (Notice people clamoring for Paul Volcker :-) As a result of this money flying from its source, countries that have nothing to do with that money are in difficulties. Need to deflect the USD. Singapore, OPEC countries, Norway... They don’t have what to do with the money of their sovereign funds. Ok, they can buy the Blackstone Group, shield Citibank, and buy a chunk of an investment bank here and there. Brazil is a different story: it can gobble any amount of money thrown at it. Not for consumption: for investment. 26 years of dilapidated infrastructure, deficit of housing... You name it. The interesting part is that, if you build a railway to bypass on city, put another runway in the airports, dredge a harbor, it shows up immediately in the bottom line. It is added as an efficiency of the economy. And I can tell you the amount of inefficiencies in the economy there is enormous (they are running the country as a rural backwater of 1888.) Perhaps that why they can make gazillions on agribusiness) Money has a purpose there. Incomes start rising, shirtless buy shirts GDP goes up. Too much consumption? Government increases cost of money. This all happened not by device. It happened as a simple change of circumstances. Circumstances changed, only thing clever to do was: position itself and profit from that new set of circumstances. It has not dawned in the rest of the world how this thing is going to develop. For that next posting…

To: Moominoid who wrote (33376)	4/19/2008 4:42:54 AM
From: elmatador	Respond to of 220281

HARD-ASSET: As a result of the creation of money, entities that deal with it need to seek instrument that keeps that money being money Monday morning and not evaporate. TJ goldlize his money. In short, if you hold cash, you need to find ways to get hard asset to back that cash. If you see the piling up into commodities you see money seeking hard-assets. Say the sheiks of the GCC call you up and tell you: Moon we've got this pile of USD on our sovereign fund down here and we have absolutely nothing to do with it. We need to deflect to as far away as possible, and they show you their inflation figures... (I could scare you if I would say: it is not a sovereign fund is the pension fund on which your pension depend :-) but I don’t want to scare you and refrain to write that) You seat down there and you would think: I need to get that money and turn into hard-assets. And they are not piling up gold by the container load mind you. You tell lets buy mobile operations in Africa: They'd say, Kuwait done that already. Airlines? Qatar and Emirates are already established. You'd need cement factories. Forests with trees (one dollar per tree per year in Brazil; was the metric two years ago). Real estate... Now look around: where there is a huge amount of hard assets piled up? In Brazil! Therefore is just natural that money goes there and buys those hard assets. The country need to keep the most possible conservative policy to give market the assurance they won’t fiddle with the rules of ownership of those hard-assets and that the economy is stable and the currency is the utmost concern of the finance authorities. It is very hard because Brazil has a track record of lousy economic policies when it was always fleeced in a flight for quality environment. That means Brazil has to show twice the responsibility of any finance authority in the planet. This is good because it underlies the economy. as people need more units of a given currecny to buy the same thing they've bought yesterday, they must go and seek hard-assets. hard-assets to be exchanged for that currecny to be used to buy your stuff. If you seat on whole hard-asset pile, you are in fat city.