Nov 21. Stocks weak; news ultimately bullish for gold

–Super Committee results due this week, and every indication is that they’ve grasped failure. Stocks opening quite weak as a result.  However, several items also point to trouble in the supposed engine of growth, China/Asia.  (Reuters) – Chinese Vice-Premier Wang Qishan warned on Monday the global economy is in a grim state and that an “unbalanced recovery” might be the best option, at talks where senior U.S. officials said the mood at home toward China was souring.  And it’s not just the developed world that has excess debt problems.  According to Larry Lang, a finance professor at HK University: “… the regime’s [China’s] debt sits at about 36 trillion yuan (US$5.68 trillion). This calculation is arrived at by adding up Chinese local govt debt (between 16 trillion and 19.5 trillion yuan, or US$2.5 trillion and US$3 trillion), and the debt owed by state-owned enterprises (another 16 trillion, he said). But with interest of two trillion per year, he thinks things will unravel quickly.”
–There’s also news that Greece is trying to force repatriation from Swiss bank accounts. >>>GOLD. 
–Treasury auctions 2’s (today), 5’s and 7’s in this holiday shortened week.

Posted on November 21, 2011 at 12:43 pm by alexmanzara · Permalink
In: Eurodollar Options

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