5 replies to this topic

[nimblebear]

Russian Capital Investment ... RUR 283.9 billion during the month of February, marking a +17.8% rise over January's total of 238.2 billion. This also represents a rapid year-year growth rate of +19.6%. Russia Average Monthly Wages ... rose +26.4% yr-yr in February Russian Retail Sales ... rose + 14.4% yr-yr, a NEW bull move HIGH rate of growth, accelerating from +13.5% yr-yr in January, and up significantly from the year-ago growth rate of + 10.1% yr-yr. Oh, and one more quick FACT extracted from the FSS report ... Russian Housing Completions ... up + 72.0% yr-yr ... yes, seventy-two percent increase in home building, accelerating rapidly from an already robust rate of growth, pegged at + 64.5% yr-yr in January. From Greg Weldon via John Mauldin. (Got Raw Materials ? Anyone ?)

[da_cheif]

a world wide inflationary economic boom of unparalleled proportions is unfolding before ur very eyes.......bet on it......

[nimblebear]

a world wide inflationary economic boom of unparalleled proportions is unfolding before ur very eyes.......bet on it......

...more....

In Russia...

Russian FX Reserves ... $321.7 billion ... a NEW ALL-TIME HIGH, via a HUGE single-week expansion of +$4.4 billion. Moreover, this marks a three-week rise of more than +$10 billion, and a rise of exactly +$20 billion since Jan-12th.

In The US...

first, as presented in the weekly Commercial Bank Lending data:

Loans and Leases in Bank Credit ... $6.174 trillion, a NEW ALL-TIME HIGH, up + $7.4 billion in the latest week, and up by + $26.2 billion over the last four weeks, ended March 7th.

Real-Estate Loans Outstanding ... ROSE in the latest week, as it has EVERY week in the last four weeks, hitting a NEW ALL-TIME HIGH in the most recent week (ended March 7th) at $3.381 trillion.

In China....

Simply, the PBOC is NOT ... tightening ...

... and ... they are FAR from being, tight.

Indeed, when we focus on China's Consumer Goods CPI, real rates have PLUMMETED even MORE, with the CPI of +0.7% in August, having spiked to +3.0% in February, pushing real rates to a NEGATIVE (-) 0.21% level, even with the this weekend's 0.27% rate hike thrown into the mix.

Again, may be this is why Chinese Retail Sales ROSE to a NEW HIGH rate of growth in February, at + 14.7% yr-yr, up a full percentage point from the already rapid rate of growth seen in July, pegged at +13.7 yr-yr.


....and..

--- Domestic Chinese Bank Lending ... up 981.4 billion Yuan ($127 billion) cumulatively, in just the first two months of the year.

Indeed, this is equal to ONE-THIRD of ALL the lending done in the ENTIRE YEAR, last year.

In other words, at the pace seen in the Jan-Feb period, credit creation in China would DOUBLE this year, over last year.

In other, other words ... at the pace seen in the Jan-Feb period, credit creation in China would reach THREE-QUARTERS of a TRILLION-DOLLARS, in 2007 alone.

Throw in a quarter of a trillion-dollar trade surplus, and we are talking about ONE TRILLION DOLLARS in Chinese 'liquidity' growth, this year alone.

In Japan...


And then, we note an eye-opening data point released this morning by the Bank of Japan, contained in their Quarterly 'Flow of Funds' report:

Household Holdings of Financial Assets ... 1,541 trillion yen ... (yes, fifteen hundred trillion yen, or more than $13 trillion, yes trillion, dollars) ... a NEW RECORD HIGH... on the back of RECORD 'flow' into Investment Trusts.

The Big 3 ....

Subsequently, from Russia, China, and Japan, the THREE SINGLE LARGEST holders of USD ... the liquidity wave continues to roll and a US debt-liquidation / risk repricing / volatility expansion move ... might be avoided, yet again ... for now.

(Credit to Greg Weldon via John Mauldin.)

[Cirrus]

a world wide inflationary economic boom of unparalleled proportions is unfolding before ur very eyes.......bet on it......

Chief,

I don't expect spectacular real returns in US stock indexes over the next 24 months. However, there are market segments that are about to go nuts. It will not stop until the central banks want it to. There will be nasty corrections but given the backdrop of Iraq, the US housing market, Iran and especially the 2008 elections, I just don't see a prolonged bear market in site. IMHO it's simply too dangerous to create a healthy recession that cleans out right now. It will eventually have to come, but not yet....IMHO of course.

[da_cheif]

>I don't expect spectacular real returns in US stock indexes over the next 24 months<.........and thats a good thing........:>)

[pdx5]

Russia is sitting on more oil, more natural gas, more gold, more critical alloying metals (chromium, vanadium, etc) than any other country in the world. All Russia needs is a good old fashioned capitalism to go from rags to riches.