Confiscation Schmonfiscation Obfuscation
Source: Kitco, Jon Nadler (6/11/10)
"Bargain hunters emerged in $1,215–$1,220 range and halted further declines. . ."
China's higher-than-welcome inflation rates raise the specter of interest rate hikes and/or yuan revaluation to keep things from boiling over. It may possibly late in that game, however, as the world's third-largest economy heads for—or has reached—the point where surplus labor disappears and pushes wages and demand upward. That raises the possibility that places like Vietnam could see a rise in manufacturing activity that then might leave China on cost issues.
The euro was treading water near one-week highs against the greenback earlier this morning as some of the concern that the regional debt problem will send the world economy into "W" land dissipated. One who might disagree (and does) is George Soros. He declared today at a conference in Vienna that we have just "entered Act II of the drama."
The drama Soros referred to is the one that'll sink the world's financial system 'as we know it.' Soros did not offer a vision of the financial system will succeed the one we know currently. As things stand this morning, a third week of gains is underway in the Old World, led by Spanish lenders.