Exposing Ideas to the Envelope of Serendipity

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Tuesday, April 21, 2009

Case in point: “China's State Reserves Bureau (SRB) has instead [of U.S. T-bonds] been buying copper and other industrial metals over recent months on a scale that appears to go beyond the usual rebuilding of stocks for commercial reasons,” reports Ambrose Evans-Pritchard of The Daily Telegraph.

While the world is waiting for China to start hoarding gold, Pritchard notes that the Red Naiton is gobbling up “aluminium, zinc, nickel and rarer metals such as titanium, indium (thin-film technology), rhodium (catalytic converters) and praseodymium (glass).”

"China has woken up.” a taiwanese shipper told Pritchard, “The West is a black hole with all this money being printed. The Chinese are buying raw materials because it is a much better way to use their $1.9 trillion of reserves. They get 10 times the impact, and can cover their infrastructure for 50 years."

(Amusing side note: In a recent survey conducted of “The Doomsayers Inherit the Earth” by the Business Insider, Ambrose Evans-Pritchard scored an 83 on the “gloom and doom” scale of the world’s most scariest views. Our own Bill Bonner scored a 97! Heh. The list includes Nassim Taleb, Marc Faber, Jim Rogers, Nouriel Roubini, Meredith Whitney, Mike Mayo and others… many of whom have graced these pages… and our stage in Vancouver. )

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