Friday, April 24, 2009

China Buying Gold

Great Headlines in the news from the economy; durable goods orders weren’t down as much as expected... Are you kidding? The numbers are terrible and they’d be worse except that huge orders for Military aircraft gave a bump to the numbers. Nobody is buying the kind of things that you would need to replace worn out equipment let alone preparing for future growth. Numbers for consumer goods continue the spiral toward the bottom unabated as unemployment continues to climb.

China has revealed that it has been quietly buying gold and now holds over a 1000 tons. That’s about ten percent of it currency reserves at current prices. China has been buying anything that they can from anybody that will take dollars; even handing out free money to its trading partners in South America to lessen the damage to their economies from the collapse of the bloated behemoth to the north. They are also starting to hand out Chinese currency and since they have manufactured goods to sell; their currency is actually worth something; not to mention their gold reserves.

China is rapidly expanding it’s deep water navy and now has ten nuclear submarines. They also have begun construction of their first aircraft carrier. Instead of nuclear power; will they burn surplus dollar bills in its boiler? Our own Masters of the Universe told us how great America was and how patriotic they were. You could tell by the Flag pins on their lapels; pins that are made in China.

All they were really doing was lining their pockets by gutting our manufacturing base. They sold China all our technology no matter how sensitive saying they were bringing democracy to China. China didn’t become democratic and for eight years we weren’t either. Now we have a new arms race that could have been avoided. Of course if we build any new weapons we will need to buy computer chips and parts from China. I guess I should sign up for those Chinese lessons and beat the rush.