Tuesday 3 June 2014

The Art Of War For Resources: How China Fooled The World ... And Will Do It Again - "Surprise PMI Rise"



  This weekend China came out with the surprise: PMI rose to the highest level in five months Reuters reports: "China Official PMI Hits Five-month High In May, Boding Well For Q2":

"(Reuters) - China's factory activity expanded at the fastest pace in five months in May due to rising new orders, official data showed on Sunday, reinforcing views that the world's second-largest economy is regaining momentum in the second quarter following Beijing's targeted measures to bolster growth. Reuters."
  The timing of the rebound is quite interesting: China has just announced the "Holy Grail Deal" worth 400 Billion with Russia on Gas and Oil and Minmetals has just bought Las Bambas Copper for 5.85 Billion in Peru. Copper has immediately celebrated the news with 1.2% rise on the day yesterday. Welcome the The Art Of War For Resources in the age of Currency Wars and The End Of Money.


TNR Gold Los Azules M&A: Copper Rises to 11-Week High on Optimism From U.S, China.



"Finally Dr Copper is waking up to the positive news from China that the end of the world will be postponed again.


"China continues its buying spree of copper assets all over the Globe: last month the huge Las Bambas copper project in Peru was bought by Minmetals Group for $5.85 B and now Guandong is bidding for PanAust. Reuters reports on the deal and you can notice how the activity in M&A by Chinese companies is picking up during the "soft market". It is the very important indication of the major bottom in the mining cycle: it is cheaper "to dig" for Copper and Gold on the Stock Exchanges now, when valuations of assets in the ground of listed companies are discounted by the depressed mining markets.  Read more."

Sufiy.:


How China Fooled The World ... And Will Do It Again.



  "This documentary brings the very important perspective to the China's economic miracle. We do agree that Collapse of China will be nothing less spectacular than its Rise, but will it ever happen? Nobody questions that the growth above 10% is unsustainable, but will anything "less amazing" like 7.0% -7.5% will Crash China? Western media would like us all to believe so. We are not convinced. Timing is very suspicious. West is desperate for another War, for anything to fight for ... with its last Empire attribute left - The Military Industrial Complex. Whether it is Syria, Ukraine or even China does not really matter. Whatever it takes to keep the party going.
  So far we can tell that China is laughing all the way to the bank with lower prices on all assets including Copper and Gold. Why pay more if you can pay less? Nobody knows for sure how the rebalancing in China will work and whether domestic growth will smoothly overtake the export driven economy. The only one thing we can tell for sure is that China implements the state-level plan to accumulate and secure the strategic supply of critical commodities like LithiumCopper and Gold. Situation will be always more complex than any article or even this documentary can analyse, but Financial Wars will unlikely weaken China's Rising Power and West will have to deal with the very strong competition for the diminishing Supply of all crucial commodities.
  China is already busy weakening Yuan in order to stimulate export and next round of economic stimulus maybe just around the corner. We have to mention another very important thing here: in the West the stimulus goes to those who are closer to the FED, bubbles in equity markets are not making new infrastructure for future development. Appearing in the documentary of Henry Paulson is the very good reminder of it. In China, despite all unquestionable corruption and mistakes, economic stimulus normally means high speed railway systems and new roads and airports built all around the country."

Powered by Lithium: This New BYD Electric Car Is Demolishing The Competition In China ILC.v TNR.v LIT TSLA








Smog in China.

  Investors are still connecting the dots and far reaching implications of the Tesla Gigafactory for the Electric Cars, Solar and Wind power industries. The real players are taking steps already to secure the supply of the strategic commodities like Lithium for the ongoing Electric Revolution. China is literally chocking up with pollution in all major cities and government has announced dramatic shift towards the cleaner economy. Electric Cars will be the very important part of it.   We will have to learn the new names like Ganfeng Lithium - China has very quietly built the Lithium Industry over the last few years and now controls the very big part of the world-wide Lithium Materials market. Now these companies have grown up and searching the globe in order to built vertically integrated conglomerates with value chain from raw materials to the Lithium Batteries. International Lithium from Canada has built the portfolio of Lithium Projects spanning the globe from Canada to Ireland and Argentina and is moving forward with development in the partnership with Ganfeng Lithium. Do your own DD and enjoy the ride, hopefully in the Electric Car! Read more."

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