– Monday, 29 Jun 2009

Energy Intelligence reported that Chinese crude imports rose by 5.5% YoY to 4.04 million barrels per day in May with Iran becoming the largest supplier.

As per report imports from Iran almost doubled to 730,000 barrels per day while imports from Saudi Arabia reached 653,000 barrels per day down by 15.5% YoY.

Imports from Angola dropped 35.5% to 483,000 barrels per day, while volumes from Oman rose 70% to 319,000 barrels per day and imports from Kuwait almost tripled to 244,000 barrels per day.

(Sourced from

Comment – June 29, 2009

The fact that Iran is now China’s biggest energy supplier has implications beyond economics. China’s emergence as a superpower is now dependent on Iranian oil. Meaning that in any confrontation with the West – diplomatic or military – China is likely to side with Iran.

After all, China is unlikely to welcome the overthrow of Ahmadinejad and the installation of a western orientated regime in Tehran. This would jeopardise China’s economic emergence as western powers would be able to call the shots over its energy supplies.

To some degree this is already happening, with China recently warning the U.S. and other western powers not to meddle in Iran’s affairs.

Again, we are reminded of a very gifted psychic friend who accurately foresaw the invasion of Iraq years before it seemed remotely possible. He now foresees a looming conflict with Iran in which China will play a leading role.

Indeed, we can be grateful that the conflict hasn’t already begun. On April 17, 2009 Israeli planes were preparing to launch a strike at an air show north of Tehran. Most of Iran’s air force had congregated there for an air display and had it gone ahead Israeli air strikes would have caught them on the ground, just as they caught Egypt’s air force in the 1967 war.

This time, however, Russian surveillance satellites caught Israeli preparations for the strike. In turn, the Russians informed the Iranians who called off the air show and dispersed the aircraft.

Had it gone ahead however, we would already be in the opening stages of what will become an apocalyptic conflict. That doesn’t mean it’s not going to happen though. It will, probably before the end of this year around November we can expect to see the first sparks.

So if war with Tehran starts to loom, the Western alliance won’t just be facing Iran or Syria or nuclear capable Pakistan or Hezbollah and Hamas but all of them together with China.

You can bet on China; it’s rise, as a global superpower will depend on it.

Posted by Mr Thx Tuesday, June 30, 2009 0 comments
Posted by Mr Thx Monday, June 29, 2009 0 comments

I often quote Richard Russell, the 85-year-old writer of the Dow Theory Letters, in my blog posts. Although I may not necessarily always agree with his views, they are always stimulating and important to consider when piecing together the financial puzzle. His article on competitive devaluations and the implications for fiat currencies and gold bullion makes for particularly interesting reading and the paragraphs below have been excerpted from it.

“Every nation wants to export. The obsession to export has resulted in filling the world with products, things, and merchandise of every kind. There’s a world overflow of products, and the result is deflation. Just too much stuff being manufactured. Buyers from importing nations can’t handle it all. The result is asset deflation.

“One reason why every nation wants to export is to lift employment. Nothing scares politicians like unemployment. Why? Because unemployed workers VOTE just the way employed workers do. The lesson - if you want high employment, learn to export. Exporting creates jobs. China and Asia learned that lesson, and they captured world export markets with the help of one valuable item - low wages - that along with no Social Security, no medical, no pensions, no anything, just plain low wages with none of the extras.

“Ooops, I left something out. What I left out was the big second advantage - cheap currency. Every nation, particularly the exporters, wants a cheap, competitive currency. The US is no exception. Obama tells the world that the dollar is a strong, hard currency, but the dollar has been weak. The administration’s policy is to talk a “hard dollar” but hope for a soft dollar.

“The result of all this is competitive devaluations. Nations no longer devalue their currencies against gold, they simply print oceans of their own currencies, and with that paper they buy dollars, hoping to raise the price of dollars against their own currencies. The result is a growing sea of fiat junk paper.

“The greater the world ocean of fiat paper, the higher gold goes. You see, gold is the secret, unstated world standard of money. Gold can’t be devalued or multiplied out of thin air. So as the various currencies of the world decline in relation to each other, gold stands alone. It can’t be cheapened or devalued or bankrupted. While the currencies of the world decline in purchasing power in relation to each other, they all decline in purchasing power against gold. In other words, as time passes, it requires more of each currency to purchase one ounce of gold.

“In the meantime, the US continues to spend outrageously, not only running up debts for the present but also for the children of the future. The US deficits and national debt will run into the multi-trillions in coming years.

“How will these monster debts ever be paid off? They’ll be paid off by devalued dollars, they’ll be paid off by additional borrowing, they’ll be paid off by inflation, they’ll be paid off with higher taxes and probably a VAT tax, they’ll be handled by projecting them into the future for other administrations to struggle with.

“As they say in New York, ‘all right already, so what do we do about it?’.
“Short and medium term, you want dollars, as many of them as you can save. Long-term you want gold. Somewhere ahead gold will come into its own. I can’t time gold, but I can identify the time when gold is ready to ‘take off’. When gold climbs above 1,004 it will be the signal for the beginning of the third phase gold rush. What I’m saying is forget quick profits in gold, forget timing gold, just own some.

“The way the world is going, ‘gold will be the last man standing’. Gold will be wanted because unlike everything else, gold can not go bankrupt. Gold has no debt against it, gold is not the product of some nation’s central bank. Gold is pure intrinsic wealth. It needs no nation to guarantee it. Gold is outside the paper system.”

Source: Richard Russell, Dow Theory Letters, June 25, 2008.

Posted by Mr Thx 0 comments

Posted by Mr Thx Sunday, June 14, 2009 0 comments

Posted by Mr Thx 0 comments




Posted by Mr Thx 0 comments

Posted by Mr Thx 0 comments

Posted by Mr Thx Saturday, June 13, 2009 0 comments
Related Posts Plugin for WordPress, Blogger...

Sekapur Sirih Seulas Pinang

My photo
Alor Gajah, Melaka, Malaysia
Sharing is caring. This blog is about sharing information that available in web space. The information is related to Finance, Business & Trading.

Enter your email address:

Delivered by FeedBurner