Archive - Jun 20, 2010 - Blog entry

The world’s financial press, in which leading economists and analysts publish their work, never examines the relationship between the abandonment of the gold standard and unemployment, de-industrialization, and the huge chronic export deficits of the Western world powers. Yes, Dorothy, the bankers really are responsible for the world's financial problems today so get your head out of Oz!

On Sunday, the People's Bank of China (PBOC) has ruled out the one-off revaluation that US politicians had sought. For now, analysts still expect the yuan to slowly rise. Meanwhile, the decision by China should not have come as a surprise as there are several major risks should China implement a faster yuan move as favored by many.

Some additional info came forward since I last quoted a Belgian newspaper that the Jones Act may have caused a delay in the oil spill rescue by forbidding foreign vessels and personnel to work in the U.S. Gulf.
As it has turned out, the Belgian companies shouldn't feel too bad, the U.S. also turned down an official offer by the Dutch government as well.

Short covering is unlikely to be the fuel that propels prices higher.

A picture is worth a thousand words ...