Winning the Rare Earth Economic War: Luisa Moreno

China’s sudden cuts to rare earth export quotas and domestic production marked the beginning of a Rare Earth Economic War, proposes Jacob Securities’ Senior Mining and Metals Analyst Luisa Moreno. The good news is that partnerships between end-users and mining companies may just be the secret weapon to level the playing field for . . . → Read More: Winning the Rare Earth Economic War: Luisa Moreno

China’s Currency Holdings

Chinese Yuan and U.S. Dollars

The Wall Street Journal reports that China is decreasing its holdings of  U.S. dollars

Fresh data suggest China is moderating its appetite for investing in U.S. securities, a trend that could mean lower flows of cheap capital from Beijing and a possible rise in borrowing costs across the American . . . → Read More: China’s Currency Holdings

If Only There Were Some Way to Fix This

Here’s a summary of a recent paper:

The trends in offshoring and international trade that we have described are likely to accelerate. China currently employs around 120 million people in the manufacturing sector and, although some reports indicate that wages are rising in China, those wages are still only a tiny fraction of wages . . . → Read More: If Only There Were Some Way to Fix This

Global Monetary Relief from Asia

The ECB and BOE have shown their intent with their recent aggressive balance sheet expansions and the Fed is trying hard to keep the door open for more QE even as the data in the US continues to defy the general global slowdown.

In Asia however sticky inflation in India, a desire to nail . . . → Read More: Global Monetary Relief from Asia

Other Alpha Sources

I have been enjoying myself in the Austrian Alps last week and hence the lower output. Here is my look though, of a number of notable news stories and contributions.

Global Liquidity

Benoît Cœuré, Member of the Executive Board of the ECB has penned a speech (and argument) on global (excess) liquidity. Izabella likes . . . → Read More: Other Alpha Sources for February 13, 2012

A Stupid Question

From Don Boudreaux:

If Beijing’s intervention into the Chinese economy justifies U.S.-government ‘retaliation’ to ‘correct’ market distortions created by those interventions, shouldn’t the still-significant lingering negative consequences of Beijing’s interventions into the Chinese economy from 1949-1978 be considered? Shouldn’t Beijing’s artificial destruction, during the middle decades of the 20th century, of production efficiencies in . . . → Read More: A Stupid Question

Gold Prices Driven Higher by Europe and China: Greg Weldon and Grant Williams

Preserving wealth in a volatile political and financial world is a job for gold. Greg Weldon, publisher of Weldon’s Money Monitor newsletter and Grant Williams, a portfolio advisor at Vulpes Investment Management in Singapore, will share their insights at the Cambridge House California Investment Conference Feb. 11–12. In this exclusive interview with The . . . → Read More: Gold Prices Driven Higher by Europe and China: Greg Weldon and Grant Williams

Look for End of Debt Supercycle: Thoughts from the U.S. Global Investors 2012 Forecast

What do investors need to be watching out for in 2012? More Eurozone drama? Record gold highs? A hard landing in China? The U.S. Global Investors team addressed these questions with Endgame: The End of the Debt Supercycle author John Mauldin in a Jan. 5 Outlook 2012 webinar. The Streetwise Reports editors highlight . . . → Read More: Look for End of Debt Supercycle: Thoughts from the U.S. Global Investors 2012 Forecast

Home-Brewed Copper: Dr. Michael Berry and Chris Berry

Despite a pullback in growth for China, copper demand is likely to remain strong in 2012, according to Dr. Michael Berry, publisher of Morning Notes, and his co-author, Chris Berry, founder of House Mountain Partners. Other developing nations, such as Indonesia, should pump up demand, but supply from such regions remains a tenuous . . . → Read More: Home-Brewed Copper: Dr. Michael Berry and Chris Berry

China's Future Deconstructed: Holmes vs. Chang

China has become the $5.88 trillion question in the world financial equation for 2012. In an attempt to gauge the direction of this economic elephant, Cambridge House International is asking two China experts to debate the health of the second-largest economy at the Vancouver Resource Investment Conference January 22. We called the two . . . → Read More: China’s Future Deconstructed: Holmes vs. Chang