Research for Online Investors
Chinese economic numbers are always
questionable. The government can report anything they want (or need) as
it is part of the propaganda machine that keeps them in power. One of
the ways investors have used to gauge the health of the Chinese economy is to review electricity
Electricity usage may not be as
manipulated as a “headline” number. Increased energy usage should
indicate a growth in economic activity. Bloomberg has an article today that questions this indicator.
Their premise is that the Chinese
economy is converting to provide more services that are not energy dependent. Heavy users of energy have also worked to become more efficient. June’s Industrial production increased 9.5% according to official reports, but
electricity production was unchanged from June 2011.
China’s July Manufacturing PMI was
released last week at 50.1 with the Services PMI at 55.6 China will
release trade data on Friday. Economists expect export growth to have
slowed. Bank lending will be released on Aug. 15. Economists expect loan demand in Yuan currency decreased in
The Chinese government cut interest
rates in June and July. The government’s official GDP growth target for
2012 is 7.5% Last quarter’s GDP grew at a 7.6%
Insurgents killed sixteen Egyptian
policemen in Gaza and stole two armored vehicles on Sunday. The gunmen
loaded explosives on the vehicles and drove towards the Gaza/Sinai border then towards Israel. One vehicle exploded in Sinai but the other was destroyed by Israeli aircraft when
it crashed through a security border fence. Not to pass up a chance to
blame Israel for something. The Muslim Brotherhood’s Egyptian website
asserts the attack “can be attributed to Mossad.”
Mohamed Morsi is the new President
of Egypt, and the Muslim Brotherhood’s candidate. He has condemned the
attack by Islamist gunmen. The government has referred to the insurgents
as “infidels.” It is too early to tell if the Muslim Brotherhood is challenging President Morsi’s government or
just falling back to their favorite target to blame.
The International Business Times has a good follow up story on the Egyptian attack. Debkafile reports the head of Iran’s National Security Council traveled to Beirut yesterday to
meet with Hezbollah’s leader Hassan Nasrallah. Coordinated action is being considered in Syria if President
Bashar Assad’s government falls.
Iran’s Armed Forces Chief Gen.
Hassan Firuzabadi threatened Turkey. Iran is propping up Syria and sees
Turkey as supporting the Syrian rebels. Firuzabadi said “Turkey will be
next in line for violence after Syria if it continues to work on behalf of Western
The market continues to rally this
morning. The reasons are puzzling. Gold is even to lower, silver is holding higher but looking
toppy. We closed our AGQ position this morning for a nice 22% gain
in the SwingTrader. This follows closing multiple positions in TEF
yesterday, one for over a 200% profit. The dollar UUP etf is
steady but interest rates look a little higher. If optimism is
contagious, the market caught the bug. We are more worried about a
nasty case of the flu. Meanwhile Spain and Italy mark time before
they have to request a bailout. Greece fiddles their thumbs over
what they can do without spurring more protests.
Treasury Secretary Tim Geithner and
Auto Bailout officials have been caught in another lie. It appears some
may have perjured themselves before congress and in federal court. When
General Motors went bankrupt, the government had to decide what to do with Delphi, the division that manufactured
Pensions were terminated for 20,000
non-union employees while the pensions for union employees were protected at the expense of
bondholders. The Daily Caller has copies of emails between the Treasury Department and the Pension Benefit
Guaranty Corporation (PBGC). PBGC has to take over pensions for
companies and is responsible to operate independently.
The White House and administration
officials have maintained the PBGC made the pension decisions independently. Not really. Political decisions were
made and enemies were punished. You can read the story and the emails.
We can easily forgive a child that is afraid of the dark. The real
tragedy of life is when men are afraid of the light.---Plato
Back to Top