China

China Estimated with 36.8 Trillion Cubic Meters of Shale Gas

News Analysis: China Estimated With 36.8 Trillion Cubic Meters Of Shale Gas will help defuse soaring Gas Energy Costs, due to Demand, by Increasing Supply. It is estimated by some, to have the World’s Largest Deposits of Shale Gas. As China increases its  Prowess in ‘Fracking” Technology, more gas will be produced through this means.

Some people say: As more Energy Resources are discovered Everywhere in the World, perhaps its Citizens will realize that Petrochemical Formation is a “Natural Earth Process Occurring Over the Millennia”.

Often opined is: The “Scarcity of Supply” Mantra ‘Only benefits those who sell Petrochemical Products to Anxious Customers who believe such Drivel’. Commodity Traders sometimes make more money per barrel than those who actually produced the oil by drilling. Fantasies like ‘$200.00 a barrel” for oil are told to airlines, to sell more “lightweight” aircraft. A future with “$15.00 a Gallon ‘US’ gasoline” which was touted to the public to help sell  smaller cars with four and six cylinder engines, never materialized.

The Morality of the Marketing to the Masses is not very high. Reality.

Reference: http://www.scmp.com/business/commodities/article/1364705/spt-turns-bullish-shale-gas-outlook

Yemen Electrical Power will Come from China

News Analysis:  Yemen Electrical Power Will Come From China due to New Energy Facilities it will Build the Nation. This poorest Arab Country needs Electrical Power for its residents as well as for Commerce. Power Plants will provide their needs. Yemenis can have their Standards-of-Living ‘SOL’ raised by the Port Expansions as well. 

The Generous Funding by China is a continuation of its Well-Respected Funding Program of  Nations’ Infra-Structure Improvements. 

The “Hearts and Minds” of a Nation’s Citizens are won by Assisting Them in their ‘SOL’ Growth. Also, creating a ‘Positive Thoughts’ Environment “PTE” in which they can reside is essential. If they are  Cold, Fearful, Hungry, Ill, or Poor, they will not be happy. Worldly-Wise Individuals realize An Unhappy Mind is the Devil’s Workshop. Happy people, typically, do not become ‘Radicalized’.

“Bayonet Diplomacy” by using Military Force, practiced by some Super Powers, is a Long-Term Counter-Productive Policy. Both ‘SOL’ as well as “PTE” Needs remain unanswered in that Country, to date.

 A Super-Power with Excessive Financial Indebtedness Cannot readily help Itself, let alone, hope to help Needy Nations. Reality.

Reference: http://tinyurl.com/lapvy93

Chinese Yuan Quickly Becoming an International Currency

News Analysis: Chinese Yuan Quickly Becoming An International Currency bodes well for other Nations of the World: It gives those Countries an additional Financial Choice. As Small Examples: a Government can engage in Arbitrage of its own currency against the U.S. Dollar or the European Euro. In  doing so, the value of its Currency Reserves may be enhanced; Privately,  Corporations around the World may find it more opportune to pay for Goods and/or Services with the Yuan; Businesses in China may find More International Customers for their Goods and Services.

One may assume that China realizes that the Profligate Debt of the United States [Currently $17 Trillion+ and Growing] will have a Long-Term Effect of reducing the value of the Dollars it holds.

No Permanent and Workable Solution for the Timely Repayment of  the ‘Mount Everest’ of Debt, has been decided by the American Government. So, the Financial Debt Avalanche Grows in both Size and Complexity. Its further Anticipated Borrowing will merely Compound the Problem. If Natural Calamities occur, such as Hurricanes ‘Hugo’ or more recently ‘Sandy’, then More Debt Will Occur. Even to the present, the U.S. Federal Government HAS NOT fully paid for the damages caused by Hurricane Sandy. Additionally, if another War were to occur, a Colossal Debt Increase will be realized. Inordinate Spending by “Washington” MUST STOP.

A Fundamental Attribute on the “Income-Side” of the Financial Ledger is that Debt is Partially Reduced by  Income Growth. As against other Nations, America has fewer Unique Goods it can sell  them. In part, this is because Washington’s Leaders with their Trade Agreements did not realize a Simple Economic Fact of Life: “A Successful  Country sells its Products Not the Technologies to Produce those Products”. Once the Technologies are Transferred and  Revealed, the Customer Countries merely duplicate the End-Products [and sell them at a Lesser Price]! Thereafter, the Short-Sightedness of the Initial Technology Countries continues to “Bite-Them-In The Pocketbook”.

This has Already Happened to America [Technology Transfer].

Perhaps, Some Countries are in their current Inextricable Economic Dire Straits due to a Lack of Financial Common-Sense by their Government Leaders. This is Not Rocket Science.

Reality.

Reference: http://rt.com/business/foreign-currency-china-reserves-075/

Trans Pacific Partnership (TPP) is a Stealth Approach in Submarine-Style Plotting

News Analysis:  Trans Pacific Partnership [TPP] Is A Stealth Approach In Submarine-Style Plotting by a Few Countries. Absolutely fearing the “Light Of Day” with Public Disclosure of Discussions, Cabal Members remain silent. Like Cockroaches, they fear Exposure.  The designed omission of China from the Plotters Scheme reverberates loudly to all who are aware of the Nefarious Pact. Additionally, reported ‘Agreement Terms’ of the ‘TPP’ are Grossly Unacceptable to many people who have been ‘Unauthorized” reviewers who are really concerned about citizens’ economic welfare.

Countries who Publicly Espouse Democracy and Fair Play should not engage in Surreptitious Behavior. Their  Hypocrisies dissuade the World Citizenry; When will they ever learn this Principle? The “Masters Of The Universe” [Government Leaders’ “Handlers”] who really Establish Vested-Interest Directions, should realize: “Long Term, There Are No Secrets”. Reality.

Reference: http://www.scmp.com/business/economy/article/1360986/look-whos-not-invited

Turkey to Lower Individual Gem Stone Taxes to Increase Jewelry Exports

News Analysis: Turkey to Lower Individual Gem Stone Taxes to Increase Jewelry Exports significantly. Since a major impediment to Jewelry Sales From Turkey have been Gemstone Import Taxes for individuals, Jewelers have been at a disadvantage. Both China and India have been offering Gorgeous Jewelry Items at attractive price points for consumers. It is expected by many that exports by Turkish Jewelers will logarithmically increase over the next few years.

Investors may want to consider acquiring Gemstones at “Today’s Prices” since “Tomorrow’s Demand” should be greater [due to Turkey’s Tax Mandate For Individuals].

Reference: http://tinyurl.com/kw2zhvc

Chinese Gold Purchases Outperform Those of Indians

News Analysis: Chinese Gold Purchases outperform those of Indians in part due to a Import Restrictions imposed by the Indian Government. Efforts have been made to stop Smuggled Gold entering into India. This effort, conjoined with the currently ‘high’ price of the metal, has kept the average Indian Citizen out of the market. In China, its people are acquiring the Precious Metal at a higher rate than that of their Good Neighbor to the South.

Investors should evaluate at least Two Important Elements involving the Price of Gold. First, The current ‘Controlled Deflation’ Policies of Governments have all but eliminated CURRENT inflation; it being the “Touted” Reason to buy gold, some say. People  understand that Paper Money  can have vast Supply Increases by merely printing more [It is merely assorted fibers and ink] . While this activity is Inflationary, it temporarily solves monetary problem for Politicians [who are typically of  ‘Short-Term’ Outlook]. 

If some Monetary Policies of Nations of Profligate Spending continue, Inflation  results. For example, the “Beating of War Drums” which occur regularly for and in the Middle East are conducive to acquisition of Armaments by Governments. Such equipment is Exceedingly Expensive. Even the mere stationing of One Soldier in a War Zone in another country has a cost of approximately $1,000,000.00 per year! Smart National Leaders forgo costly Military Expenditures for “Dollar Diplomacy” [Wisely, they use a “Buck” rather than a ‘Bayonet’ to Achieve Their Goals; it is less costly].

Second, the Historic Value placed on Gold [as well as its current price] have led many countries to stockpile the metal continuously. Gold’s availability is known to be Finitely Limited and therefore has Historic Value and Present Value relative to World Demand for it. At a minimum it can be: fabricated into various saleable forms [such as dental crowns]; used in other products [especially electronics]; and, even Eaten.

As Asia increases in wealth, its citizens will most likely purchase Gold for Jewelry and Investment. Eventually, Gold’s value will also increase if  Monetary Policies of Nations of Profligate Spending continue. 

Having some Physical Gold in one’s Portfolio is a most conservative ‘Play’. To those more trusting individuals, Stock Certificates in Gold Producing Companies can add Long-Term Value to their Investment Assemblage.

The World Population is steadily increasing beyond its present 7,141,000,000 People. The fact that they may be chasing the “Sixty-Eight Foot Gold Cube” [171,300 Metric Tons in Circulation today], bodes well for the Future Value of  Gold. Reality.

Reference: http://www.dnaindia.com/money/report-china-may-topple-india-in-gold-demand-1919338

Customs Union, Led By Russia, Increases Other Nations’ Interest

News Analysis:  Customs Union, led by Russia, increases other Nations’ interest by offering Economic Growth Possibilities not to be ‘matched’ by the European Union. The Voluminous Natural Resources of the Custom Union Signatories, if added to, by other interested countries, would be ‘One of a Kind’. The shared interests of China and India offer the Customs Union enormous business opportunities not available in Europe. A Economic Triumvirate as such, would be a Powerhouse second to none.

The Best Economic Future for the Nations contemplating the Customs Union lies in their becoming its Members. Reality.

Reference: http://www.bne.eu/storyf5521/Central_Asia_states_press_ahead_with_moves_to_join_Customs_Union

Aluminum and the “Law of Supply and Demand”

News Analysis:  The “Law of Supply and Demand” [LSD] remains unassailable even regarding Non-Ferrous Aluminum.  The Bauxite Mining-Aluminum Smelting capacities of countries has far exceeded demand for the Metal. Since the ‘Supply’ Portion of ‘LSD’ has not been effectively curtailed, logic would dictate the ‘Demand’ Side be addressed. 

The light weight of Aluminum, in general, and more specifically the ‘Hybrid’ Aluminum-Lithium [which is even lighter] have been making steady in-roads in aircraft fabrication. As Metallurgists invent even lighter Aluminum Alloys the products should increase in Aircraft fabrication.

Ship Construction is another important market on the “Demand Side’ of Aluminum. Primarily “Plate Stock” in designation [rather than typical ‘Sheet Stock’ for aircraft’ fabrication] much greater tonnage can be ‘digested’ through its use in this industry. Since Saline-Induced Corrosion is substantially mitigated by using Non-Ferrous Aluminum, its acceptability should be enhanced.

Additionally, its ease of being machined and/or formed may reduce ‘Touch Labor” as compared to Steel.

Demand for Aluminum is a viable proposition for the Automobile Industry. Sheet stock is lighter in weight than steel [which has been the mainstay of automobile fabrication].  By merely adding or substituting totally, body components with Aluminum, better fuel saving is realized by drivers. Great tonnage of current Aluminum Stockpiles could readily be absorbed by this Industry.

Railroad “Box-Cars” made from Aluminum would consume vast amounts of the metal. The cars, then as-made, would be lighter and allow a Locomotive to pull more of them than heavier Steel cars. 

If the Government and Aluminum Supply Holders emphasize these other Demand uses, “Equilibrium” can be achieved. These “Demand” Industries are the largest potential consumers of the Metal. To resolve the current “Supply” Problem quickly, they should not be ignored.

Reference: http://www.bjreview.com.cn/business/txt/2013-11/11/content_577151.htm

Seafloor Mining in Papua New Guinea Area is a Metals “Horn of Plenty”

News Analysis:  Seafloor Mining in Papua New Guinea Area is  rich in Copper, Gold, Silver, and Zinc Deposits. Since existing Robotic Mining Equipment is available, extraction of Seabed Deposits should be easily attainable. Once extracted, and sent to a recovery ship, the metals can then be sent to China for Smelting.

The extraction of Metallic Nodules in the oceans of the world is quite pervasive. Even so, locating rich deposits in shallower waters is economically most favored by Investors.

Reference: http://www.onepng.com/2013/10/seafloor-mining-robots-and-equipment.html

Iraq Gains Large Scale Benefits in Its Commercial Partnership with China

News Analysis: Having the fifth-largest oil reserves in the world and wanting to increase its production to three million barrels of oil a day puts Iraq in a very nice position in the oil industry. Since fuel hungry nations need oil, Iraq, with its great reserves, can choose to do business with whom it wants. In this case the primary selected country  for commercial partnership is their friend to the north-east: China.

The historical  approach of China in international business is “Bucks Not Bayonets” is  the catalyst for good long-term commercial transactions. Since the Chinese have a wise culture developed through thousands of years of experience, it does not make the aggressive blunders like countries only two-hundred plus years old. Threats and hostile actions buy one NOTHING in the long term. One has to develop the trust of others over time. Adroit leaders of nations understand this, foolish ones do not. Cooperation, not catastrophe, should be the driving force amongst countries.

The close relationship between the Iraqis and the Chinese will benefit both nations well.

Reference: http://tinyurl.com/m22xs68