I wonder how these guys answer that the money supply has to expand as more and more people become economically viable. If you tie money to gold, what do you do as more and more Indians and Asians who are poor have to be paid as their economies produce jobs that did not exist before? How do you get more gold to support that new money? Is all the money printing a symptom of simply more people joining world economies?
PBOC fixes yuan at 6.3306, up 1.6% on Tuesday http://www.cnbc.com/2015/08/11/pboc-fixes-yuan-at-63306-up-16-on-tuesday.html Everything got blasted almost immediately.
After looking deeper quantitatively at China's move the last two days, I realize there are more of these YUAN adjustments coming. China is just joining the party of negative [effective] interest rates from Europe, and ZIRP in the US. That means SPX 1975 ish is nearly certain by October, if not before.
This report by MS all the way back in March was correct: Morgan Stanley Cuts Commodities Outlook on China Demand http://www.bloomberg.com/news/artic...nley-cuts-commodities-outlook-on-china-demand
PBoC claims 10% is nonsense, but imo markets are trading on that number. http://www.bloomberg.com/news/artic...-from-obscure-to-obsession-for-global-traders
This reminds me of EURCHF 1.20 floor. It will end badly one day Welcome to China's new 'managed float' regime http://www.cnbc.com/2015/08/13/chinas-new-managed-float-regime.html
"A Department of Energy nuclear site in South Carolina was locked down on Monday due to possible security issues. Authorities barricaded incoming roadways to the department's Savannah River Site near Aiken, S.C. The root of the problem—which triggered an emergency response—was not immediately known. Savannah River Nuclear Solutions—which runs the facility—said there was no indication areas outside the compound were affected." http://www.cnbc.com/2015/08/17/nuclear-site-locked-down-on-possible-security-issue.html