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Apr 17, 2009

FGC BOLSA :Two Forbes Alerts to Think

A few minutes ago we recieved two forbes alerts wich, tell us the contradictory stcck gains and the reality of the crisis. On one side Forbes brought us the after hours market update under the title of Text Color" Dow gains continue" at 8:02 p.m. At 9:06 another alert tells now regulators shut down two more banks, boosting the number of this year banks failures to all last year's failures

FGC BOLSA

From The Desk Of Nick Nicolaas: "Adam Hamilton e-letter"

Our friend Nick Nicolaas sent us the following email about Adam Hamilton weekly e-letter:

Dear Friends:

Adam Hamilton has posted his weekly Zeal Intelligence eLetter on the Mining Interactive Website and for those of you that do not have the time to read it all I have taken out some paragraphs which we feel are a must read for those that are in pain from the losses they may have incurred since last year and are now scared to get back into the market. We too had losses and feel your pain. Some of those losses we took in order to have some cash on hand but mostly our losses were on paper. We now will use our cash this summer to average down on some of our paper losses, especially in the hard-assets e.g. gold, silver, Uranium, Base metals, Oil & Gas. In any event this is no time to turn Ostrich!
Adam Hamilton: “And those who face these tough times head-on, learning and growing, have a vastly higher probability of emerging successful than the cowering Ostrich Investors. At Zeal, we study all the markets but our primary focus is on commodities stocks. Despite the turmoil the stock panic caused, all over the world people are striving diligently for higher standards of living for their families. This will require huge amounts of raw materials, far more than the world has ever seen before. Commodities producers are thriving in this environment. They have rallied mightily since 2001 when I started writing about the new secular commodities bull , they rallied strongly between November 2008 and March 2009 when general stocks fell, and they will rally in the future as the best is yet to come. If you are scared, and have bought into the Ostrich Fallacy of ignoring your investments, dust yourself off and get back in the game. Sure, the challenges are great today, but so are the opportunities. And only by understanding the markets can you ever hope to thrive in them. For about the price of a single lunch each month, you can subscribe to our acclaimed Zeal Intelligence monthly newsletter. We'll help grow your knowledge at a deep level, positioning you for future investment success. Subscribe today! The bottom line is we've just experienced a rare stock-market panic, but the world hasn't ended. Fear got out of hand but it is already abating. Today's economic data merely shows a recession, but stock prices are discounting a full-blown depression. Gradually they will climb higher to reflect a much-less-dire economic reality. And a new cyclical bull is being born, which happily coincides with a post-panic year likely to see huge gains anyway. Being stressed is no excuse to shirk your financial stewardship duties. The solutions to any problems aren't found by ignoring them, by hiding like an ostrich, but by facing them head-on. Learn about the markets, grow your investing wisdom and knowledge. Never surrender. Your future wealth is defined by your decisions today, and the Ostrich Investors are squandering incredible opportunities.
Click here for the full article Zeal Intelligence eLetter
Remember Friends - - - you have to be in it to win it!

Have a great weekend and - - - Stay Tuned!!

Regards,
Nick L. Nicolaas Mining Interactive “Ahead of the Pack”

www.mininginteractive.comSuite 500 -
Park Place666 Burrard StreetVancouver BCCanada V6C 3P6
e-mail: nick@mininginteractive.com
Tel: +1 (604) 657-4058Fax: +1 (604) 685-1631

GATA Dispatches: "William Pesek; China isn't the only currency manipulator"

Submitted by cpowell on 06:51PM ET Thursday, April 16, 2009. Section: Daily Dispatches Geithner's Biggest Problem is Dollar, Not ChinaBy William PesekBloomberg NewsFriday, April 17, 2009http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_pesek&si...It's a bit rich for U.S. politicians to berate Treasury Secretary Timothy Geithner for not labeling China as a currency manipulator. Perhaps Sen. Lindsey Graham, a South Carolina Republican, hasn't seen a newspaper in the last 12 months. With near-zero interest rates, the likely issuance of trillions of dollars of government debt and massive taxpayer-funded bailouts, the U.S. will soon make China look like a manipulation piker. Memo to Graham and his ilk: Your economy has lost any moral high ground as it drags the world down with it. That will be even truer as the dollar eventually pays the price for ultra-loose monetary and fiscal policies. And it will. Sure, China manipulates the yuan. Everyone knows that, including Geithner; he said so during his January confirmation hearing. It's also widely recognized that a stable yuan is propping up the U.S. financial system. Its $2 trillion of reserves are a direct result of China manipulating the yuan. Geithner's climb-down from the manipulator charge is about pragmatism. He is aware of the fragility of international support for the dollar. "I do not look for an immediate collapse," says Hans Goetti, chief investment officer at LGT Bank in Liechtenstein (Singapore) Ltd. "I am bearish longer term as the Fed will continue with their demolition job on their balance sheet." The key distinction may be motive. China micromanages its currency on purpose to help exporters. The U.S.'s manipulation may be inadvertent. The end result will be the same. ... China's Obsession At the moment, China's obsession with a competitive exchange rate is more of a plus for the U.S. than a minus. It's not as if Detroit automakers will sell more cars to Chinese consumers if the yuan strengthens. A stronger yuan in this global climate would be a setback to the third-largest economy. It is easy to forget in this Group-of-Seven world that China's economy is now bigger than Germany's and the U.K.'s. Even if many regard low-income China as the world’s factory floor, its importance as a national economy has ballooned. China is far from a perfect locomotive, but it is among the very few we have today. The U.S., the traditional engine, is stuck in reverse. So, it is hard to keep a straight face when politicians such as Senate Finance Committee Chairman Max Baucus, a Montana Democrat, say China must "continue reforms." ... Wrong Messenger Right message, wrong messenger. The International Monetary Fund can call on China to modernize its financial system, free its currency, or trade more fairly. The U.S., with its dollar-printing campaign, "buy American" provisions in stimulus bills, and deepening recession, can't make such requests. Nor can the U.S. offer many lessons on transparency these days. Those protesting around the U.S. on April 15, tax day, were livid about politicians spending their future. No issue has enraged taxpayers more than American International Group Inc. getting $183 billion of public money and then passing chunks of it to Wall Street's elite, including Goldman Sachs Group Inc. One reason that China's reserves madden U.S. politicians is the perception that the Asian nation is somehow rich. Yes, China's massive reserves are a nice thing to have as global markets tank. Yet all those dollars on China's national balance sheet are more of a weakness than a strength. Nobel laureate Paul Krugman calls it "China's dollar trap." The point is that China's recent call for an alternative to the dollar was as much a cry for help as an economic-policy suggestion. China would lose big-time if the dollar collapsed. ... Dollar's Woes The argument by China, Russia, and Arab states to move away from the dollar deserves attention. First things first, though. The focus must be on stabilizing a global system that, for better or worse, is anchored by the dollar. Once things simmer, a new framework can be hammered out. The battle may soon be more about saving the dollar than scrapping it. The Federal Reserve's move to cut interest rates to near zero and pump tidal waves of liquidity into markets hasn't sent the dollar into freefall yet. More Fed liquidity and government borrowing are likely. Once the U.S. begins to recover, the historic steps that such an outcome required can't be good for the dollar. Not that the U.S. would mind a weaker dollar, so long as the move is orderly. You didn't see many signs of panic in 2008 when the dollar was falling. Most economies in recession would welcome a more competitive exchange rate. The risk, though, is that the dollar's drop will be a sharp one and spook markets. Bulls argue that if you don't like the dollar, what else are you going to buy? It's a fair question. The yen? The Swiss franc? The euro? All of these options have their own problems. Yet it's worth noting that the U.S., with its fast-growing debt burden, couldn't join the euro area even if it wanted to. The U.S. is actively paving the way for a falling currency. Just because China does it on purpose doesn't mean the U.S. won't be more successful at it in the long run. -----William Pesek is a Bloomberg News columnist. The opinions expressed are his own.
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