Month: November 2014

In his post China Likely Bought 10,000 Tons Of Gold…And If They Did, Here’s Why Chris established his understanding towards the act of the Chinese government purchasing ten thousand tons of gold. He believed that, even under the circumstances of the growing value of the dollar, purchasing gold in this historical low point of gold is a smart move for both government and individuals. However, I treat this problem from different aspects. I believed that the act of the Chinese government purchasing this huge amount of gold is just an act out of sheer necessity. And individuals shouldn’t purchase gold since the gold price will continue its dropping.

From the graph, it seems gold has already come to reach its floor, however, the high value of gold always makes no sense and the price around 1000 still ain’t the identical value for gold. Thousands of years ago, when gold first becomes the “money” of human, the only reason for its value was because it is a rare metal. And later after the second world war, the gold standard appeared for the cause of the recovery of the economy. Nowadays on the other hand, more and more gold has been discovered and gold itself has lost its value as a rare metal. The only reason that the gold price remains high is in the definition the world gave it. Just as what Warren Buffet said n his interview that “I’ll never invest gold even if it reached the point of 800.”

comment from China’s stock markets change forever next week

The “Shanghai-Hong Kong Stock connects” program simply creates the world’s second-largest equity market by market cap, only below “The New York Stock Exchange”. The combination of the two stocks is definitely a positive news for all investors as well for the rising index of the Chinese stock market. But under all these gigantic concept, the problem comes again, how can investors make their profit from this big deal. From my aspect, I believe three decisive factors will be affected by the scheme.

First, it will simply stimulate the slumpy real estate industry. The bubbled real estate industry could be regarded everywhere in China. In Beijing, the average price of efficient house has been reached to 4000 dollars per square meter when the average income for Beijing people is 4000 dollars per year. However, the vacancy rate is up to 70 percent. The successful combination of two stock markets will act as a cardiotonic towards the dying real estate market.
Secondly all plate of different industry’s stock will be influenced positively by the increased floating capital in both market.
Finally the index of both market will increase a lot in the following month with everything going in the right way.
After all, right now all investors is pulling their attention to the Chinese stock market and an explosive fusion in the investment world is inevitable.

comment

United Nation always lays its hand in all corners. And it is, for no doubt the biggest profiting institution under the tag of “make the world a better place”. And the United Nation does not have a reason to employee millions of staffs and volunteers to give loans and insurance to people under “unsafe circumstances”

Saving and assisting the poor while at the same time profiting is a very hard work. The sentence “the happiness that brought them caught me in.”(Muhammad Yunus) could also be treated as” the higher efficiency it could increase amount the workers brought me in.” Think about the great fortune it takes when a huge organization (banks government…) first took away people’s happiness by giving them not enough money or a bad circumstance. And then the organization’s critical friend, the social entrepreneurs, gives the micro financial support to these unhappy people to raise their happiness. Finally poor people become happier and could contribute their life even more to the profiting organizations.

So it comes back to the question, ” If the United Nations was fully funded why would we need the Arc or social enterprise?” the answer is if they do help them, the strength of the machine of society will become lower and definitely low efficiently.

in his post “Oli Price Dives in the Past Weeks: Good or Bad?”， Darren established his opinions on the negative influence the dropping of the price of oil brought us, and showed his concerns about the future of crude oil market. However, his opinion is so closed to the text that I believe there are much more issues to discussed about on the problem of the price of oil.
The question what caused the price drop of oil wasn’t clearly developed in Darren’s blog. from my point of view, the mix power energy and clean energy are the biggest villain of oil industry. But that was not the only issue, the oil industry was always monopolized by feel giants and they are the price maker of the market. This drop in price of oil could be treat as a great solution to deal with the raising of strong dollar and the global economic.


Oil price was getting its historical low point and is dying for a bounce. the increasing force of USD gathered with the depress of the solar market will finally lead to this rebound of the price of oil. And I believe in the following one month oil will get back to the price around 83.

comment: http://www.cnbc.com/id/102162141

(1 dollar to Japanese Yan reached it’s peak in 7 years.)

During the past three weeks, the value of US dollars has been grown in a tremendous speed. The strong US dollars seems to be a great advantage for the US citizens since they could afford much more than they used to. However, there are huge problems for the entire nation behind the appearance of the atrong USD.

First the strong USD is not a good news for US citizens working outside of The State. The money these people earned become worthless compared to the strong USD. Thus, it becomes even more tough for them to support their families in the state.

Secondly strong USD ain’t acting so good for exporters. Exporters are now facing the hard choice of either remain the foreign currency price unchanged with less value, or to raise the foreign currency price while losing the quantity demand.

Thirdly, huge firms ain’t happy. These firms have to be paid more to their employees, and they earned less in foreign countries.

Finally the government ain’t happy about the bright dollars. USA being a big debtor country is not satisfied to own others even more money. The rise in value of dollars meant their own others more and more money.

For all, the growing USD is a two aged sword toward the entire nation. And it is an issue all Americans must concern.