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Dollar Falls As China Buys Up Commodities! Euro & Aussie to Benefit!
Written by: Sean HymanArticle Overview: China is stockpiling commodities as part of a reallocation of its sovereign wealth amid concern that its dollar assets may decline! China is one of the fastest growing nations on Earth right now. So, when China does something, the world listens.
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Free Download - Euro Dead Zone! By Sean Hyman |
Dollar Falls As China Buys Up Commodities! Euro & Aussie to Benefit!
On the 18th of this month, the Royal Bank of Canada made a startling statement: China is stockpiling commodities as part of a reallocation of its sovereign wealth amid concern that its dollar assets may decline!
China is one of the fastest growing nations on Earth right now. So, when China does something, the world listens. Sounds like an old E.F. Hutton commercial ...for those of you like me, that are old enough to remember it.
However, it's true. When China does something, it has so much purchasing power that it can really "stir the pot" quickly.
For the last few months, they've voiced their concerns about their "dollar holdings" which amount to almost 2 TRILLION DOLLARS!
Why is China so fearful? Because of the hundreds of billions of dollars that the U.S. is spending on bank bailouts and in stimulus packages. They fear it will cause "higher inflation and a weaker dollar".
What is China doing about it? Well, they've proposed "a new global currency to reduce reliance on the dollar". However, since that's probably nothing more than a "pipe dream" at this point, they know they have to take other courses of action.
Therefore, they are buying up iron ore, copper, oil, etc. When China buys..they "buy big". Just in April alone, they've bought up 57 million metric tons of iron ore and 399,833 metric tons of copper! They also increased their purchases of oil by 14% last month too!
One thing I've learned about the Chinese and much of the rest of Asia, is that they are shrewd in business and usually "get it right" over time. I also must say that I agree with China's fears. Why? I let the charts tell the story. Let's take a look.
Oil starts its ascent in March; the Dollar starts to fall in May!
The "Cost of Goods" is Heading Higher as the Dollar Crumbles!
Which Currencies Benefit from all of this? The Euro & Aussie Dollar!
To sum it all up...there's never been a better time to jump into the currency market. Whether you're reading this from the U.S. or around the world...you can profit from a falling dollar!
If you buy the EUR/USD and AUD/USD pairs, you will be able to benefit from this new trend.
Why these two currency pairs? The euro is the "anti-dollar". It gets that nick name because it's one of the first to benefit from a falling dollar since it is the world's NEXT most liquid currency outside of the greenback.
Why the Aussie? Because Australia is a huge commodity exporter. As commodities go up, they benefit and therefore so does their currency.
PLUS, both of these currencies are also vs. a falling dollar. So it's a double whammy! You take advantage of the falling buck by shorting it...but at the same time, you're buying currencies that will directly benefit from its fall!
How China is helping the Aussie & Canadian dollars!
Investing Trick of the Pros: As goes Oil, So goes the Euro!
China & Russia Gang up on the Dollar!
Euro Dead Zone!
Forex Market Outlook 10/17/11
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About the Author: Sean Hyman RSS for Sean's articles - Visit Sean's website  Click here to visit Sean's website   Money is Tip Toeing Back into the Emerging Markets US Dollar Forecast for 2009 Interest Rate Hike Shocker Black Gold Worth More than Real Gold State of the Economy Dollar Gold How Main Street can Benefit |
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business in CHINA
- Has anybody dealt with manufacturing companies in China? I need to find reputable company in China, which manufactures small electric appliances.
Any Ex-Bankers and Stock Brokers here?
- We are looking for partners and collaborators especially ex-bankers and stock brokers to set up an operation in Indo China, where we believe the mid to long term growth prospects are tremendous.
We are a business consultancy based in Singapore and have established a good network in Indo China over the last few years. Please PM me for more details.
Re: How do we market to 2 Billion people in China?
- [quote="ideasuniversity":3l3e911r]Internet had made the world a global village. How can we market our product to the 2 billion people in China? Imagine 1% of the population buying your product online. That is 20,000,000 multiply your product. If you sell your ebook for $5. This is $100,000,000.
Please let us brainstorm on how we can market to this country.
Your suggestion are welcome.[/quote:3l3e911r]
I'd begin by first visiting China and living there for a while to determine if there are any niche markets that aren't being served.
You can only do so much research online. At the end of the day, there's nothing that beats first hand experience and talking directly to some of your future customers.
Re: What or Who Sparks Your Business Interest
- It's interesting to see what the different motivations are by Age Category. I've noticed this around me:
20 to 29yr olds: Motivator: Money
30 to 39yr olds: Motivator: Success/Ambition
40 to 49yr olds: Motivator: Family comes first
50 to 59yr olds: Motivator: Leaving a legacy
i've only gone that far in my analysis. Of course this is a braid generalization but I find that it helps direct my marketing to individuals in different age brackets. The product/service can be the same but the Marketing message (Benefit Statement) to a 20 year will revolve around "Money" vs. a 30-something would be on their "Self Image"
Re: Suspicious/Problematic Users
- China
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