This subject came up on an Iran oil embargo thread which was basically off-topic.
I believe it deserves discussion.
First, I'm no economic expert, as my chosen name implies. Certain posts/threads have suggested, for example, a Chinese attempt to control/own the
world's gold supply (among others) has, in fact, a different explanation.
As the disposable income decreases worldwide, a manufacturing base that services that market will also suffer.
There are those in the investment field who believe that the Chinese moves to invest outside China (mainly in mining, oil and gold) is actually
individual corporate owners bailing from their currency and potential nationalization by the gov't in a desperate attempt to stay solvent. That the
gov't, as well, is "diversifying" outside China not in an attempt to "control" but to survive.
Iran may be selling oil to China and being paid in yuans, but that may be an act of desperation by the Iranians.
My information is from a family friend who has had an investment newsletter for many, many years. I will provide a link for those that might be
interested to a recent, weekly issue of that newsletter. The Chinese reference is on page 21.
I'm not an "investor" or wealthy. My interest is having an overview of where we are going, economically, and being somewhat prepared for what now
looks inevitable. The only question left is the timing of it all.
Timing is the investment issue while my own purpose is preparedness to some degree regardless of "timing".
Many of the newsletter publishers have a Quid Pro Quo with each other. They send their letters for free to each other, often quoting each other with
their own comments and opinions added on after that quote.
This allows each author to stay on top of issues that they don't specialize in so as to give the broadest and most complete picture to their
It is my understanding that the top newsletter charges an annual fee of 100,000 U.S. for twelve monthly issues. It has over 20,000 subscribers.
It is safe to say that no one person has all the data that is available worldwide and newsletters are probably the major, single source of information
for the heavy-weight investors.
It surely isn't Fox, MSNBC and the rest.
Here's the link, if your interested, use it or ignore it as you choose: