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-- Posted Friday, 19 June 2009 | Digg This Article | | Source: GoldSeek.com
Rick’s Picks Friday, June 19, 2009 “Phenomenally accurate forecasts” The U.S. may still be able to cajole China and Japan into buying our soon-to-be-worthless Treasury debt, but members of the so-called BRIC alliance -- Brazil, Russia, India and China -- have been easing toward the escape hatch. A subscriber of ours whose firm trades in far-flung global markets sent us the following dispatch -- a cautionary note for all who may have been unduly impressed by last week’s nominally successful Treasury auction. Our correspondent writes as follows: “Stop me if you've heard this one. Four men met in a room (see picture below) yesterday somewhere in Central Russia to discuss how they were going to spend their money. Oh sure, they made a rousing and high-minded statement of their commitment to advance the reform of international financial institutions, asked for a greater voice for emerging and developing countries, and lastly expressed a 'belief' that there is a 'strong need' for a stable, predictable, and more diversified international monetary system. That last clause smacks of diplomatic delicacy over the words that no one seems to want to speak, the unmentionable US Dollar. 
“Let the impact of this meeting sink in, particularly since it was barely covered by U.S. media and in fact the U.S. was not invited. We think these guys actually talked about where their massive US$ reserves are going and whether they are prepared to continue to support our deficits -- or are they going to spend their Franklins before they lose value acquiring minerals, assets, and businesses world-wide to support growth in their own economies? I don't know about you, but if I had to read between the lines of the slippery official ministerial poppycock, I'd sure bet that all of them went home thinking that door #2 is a much better option for them. Bottom line: Since I can still buy for the equivalent of $12, a meaty T-bone at the Marlin restaurant in Lusaka, you can be sure that someone from BRIC is also buying copper using their still over-valued US Dollars.”
*** Rick's Picks publishes a daily trading newsletter for gold, stock, commodity, and mini-index traders 240 times per year. Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers' initials will be used unless express written permission has been granted to the contrary. All Contents © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Friday, 19 June 2009 | Digg This Article | Source: GoldSeek.com
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