G-20 to Paper over Global Imbalances, Analysts Agree

Source: MarketWatch, Greg Robb (11/10/10)

"Fed move seems to have 'hijacked' the meeting, analysts said."

Expectations are low for this week's summit of leaders from the Group of 20 major economies, as concern over the Federal Reserve's decision to launch a second round of bond purchases seems to have "hijacked" the meeting, analysts said Tuesday.

C. Fred Bergsten, director of the Washington-based Peterson Institute for International Economics, said he expected the G-20 to declare victory on new bank capital standards, known as Basel III, and reform of the International Monetary Fund, but leave the thorny issues of global imbalances and dueling currency policies unresolved.

A U.S. proposal to address the currency woes by having G-20 countries commit to keeping their current-account imbalances below 4% of gross domestic product over the next few years appears unlikely to be endorsed by the leaders, analysts said.

Instead, the G-20 will likely "creep off" with a statement papering over the differences that all countries need to follow appropriate policies to tackle imbalances, said Steve Dunaway, adjunct senior fellow in international economics at the Council on Foreign Relations in Washington.

The Fed's decision to purchase $600 billion in bonds over the next eight months has been a lightening-rod in recent days, with strong criticism from officials of Germany, Brazil and China.The Fed's move has driven down interest rates on Treasuries and caused money to flood into emerging markets seeking higher yields.

In essence, the Fed's policy is "more a matter of 'forcibly enrich thy neighbor' rather than a 'beggar thy neighbor' competitive devaluation," Neal Soss, head of U.S. economist at Credit Suisse, said in a recent report.

At bottom, it is still China's exchange-rate policy that is leading to difficulties and should be in the spotlight at the G-20 summit, he said.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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