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Vet67to82 (< 20)

The Market bottom ??



November 09, 2008 – Comments (3)

 China just decided to spend $585 billion on INTERNAL construction, etc over the next two years.. China's getting it. That's what we need here. Build the energy infrastructure we need for the future, NOW, put people to work, at good jobs. Working people will be able to feed their families, pay their bills, and in so far as working people are taxpayers, they'll help pay down the billions in loans that went out and don't seem to be doing anything yet.  Get the USA off the foreign oil habit and into energy self sufficiency. 

  But, as a lot of countries are sure follow China's lead, demands for construction materials and equipment will increase.  That's good for CAT,  and RIO.   Now, to run all that equipment, you'll need diesel and electricity, so, you'll need more crude, and that's good for refiners: VLO, XOM, CVX, COP, BP. etc.  Shipping and pipelines are the most economical way to get crude around the world.  That's good for shippers DHT, FRO, SFL, VLCCF, and pipelines of NS and NSH. 

  When the spending starts, then I believe the global recession is over and the market bottom is at hand.  


3 Comments – Post Your Own

#1) On November 09, 2008 at 4:20 PM, milpo (45.07) wrote:

They sure do.  I like the way you emphasized internally.  Unfortunately, I also believe that they are very pissed.  They are socially conditioned to withold expressions of rage.  Unlike LordZ who seems very pissed off these days.  Can't really blame him.  Over the next year, watch the world stop buying and start redeeming treasuries. The dollar is dead. I have a feeling that the IMF is going to be marginalized, despite G-20 blather and protestations to the contrary. The parasites have killed their host. It will be fun to watch them feed on each other. The era of fiat currency is coming to an end. The banksters are desperate and their only hope is a World War.  I'm sure they are instigating it as we speak.  All you need in life is an incident and money to  start a war.  Especially if you are lending to both sides of the conflict.

I think China knows that they are going to experience fiscal losses.  Unfortunately,  I don't think they care.  They are more than self sufficient and have established adequate global connections for fuel and natural resources (i.e. Russia, Iran, Africa, Venezuela, etc.) Futhermore, they have invested steadily into their military while we have bankrupt ours.  Nevertheless, we remain the only unconscionable society that would not hesitate to use nuclear weapons. The Chinese will tread lightly because just like the bully on the block, the U.S. may decide to take the whole neighborhood with it.

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#2) On November 09, 2008 at 7:28 PM, Vet67to82 (< 20) wrote:

China has built its economy on exports, but with 1.3 billion population, China is now taking the tack that it can re-invent itself by creating a whole new internal economy.  The internal spending will circulate through their economy as new jobs bring their rural poor into the 21st century.  But, even more important for China, and the planet, is that China is planning to spend some of that money on environmental issues.    

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#3) On November 09, 2008 at 9:52 PM, nuf2bdangrus (< 20) wrote:

Don;t count on it.  The economy is overregulated, which means it is inefficient, in that it distorts capital.  Factories are shutting down left and right there.  Infrastructure is their only hope to muddle through.  THey will try to expand money and credit.  Have you heard that picture before?

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