China and the US

This is an excerpt from a recent commentary from Rick's Picks.

"The Chinese are moving out into the world. They are using their cash to acquire assets everywhere, particularly oil and minerals. They are gaining export markets in developing countries and are becoming major tourists. They acknowledge the somewhat symbiotic relationship that they have with the US and Europe and are sufficiently pragmatic to take actions that support those economies.



“In the final analysis, China will do what it perceives is best for China. If the West derives a benefit, then so be it.”

America’s Suicide

Contrast this with America’s economically suicidal policy of fighting debt deflation with the creation of yet more trillions in new debt. Clearly, America has no long-term plan or even a goal. Instead, the nation’s economic policies seem geared toward papering over problems rather than resolving them. The result, in nearly each and every instance over the last several years, has been that Government’s misguided efforts have failed miserably. The costs have yet to be borne by taxpayers, but when the bills start coming due next year, the tax burden that results will kill any remote chance the U.S. economy had of recovering."

Accordingly, look for gold to take another giant step forward in 2011.

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