Comments on: Top Resource Prices in 2008: Food, Water, Energy & Metal http://www.dailyreckoning.com.au/resource-prices-2/2008/06/20/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Ross http://www.dailyreckoning.com.au/resource-prices-2/2008/06/20/comment-page-1/#comment-27660 Ross Mon, 23 Jun 2008 02:40:56 +0000 http://www.dailyreckoning.com.au/?p=2849#comment-27660 I'm voting my money with Tom. Tightened capital standards on the Chinese banks to rein in US exported inflation and the bursting of the local stock prices and the end of 3 gorges and the end of the Olympics burst... what are you thinking? To know China is to know the dominance of export trade and the capital spending that supports it is no.1 priority. The Chinese also have the cultural propensity to save rather than consume. Turning around an export led economy to a domestic one given the above is unlikely to happen quickly. Domestically they tend to throw bodies at issues moreso than capital and it is the capital investment that drives the heavy end of minerals volumes. I'm voting my money with Tom. Tightened capital standards on the Chinese banks to rein in US exported inflation and the bursting of the local stock prices and the end of 3 gorges and the end of the Olympics burst... what are you thinking? To know China is to know the dominance of export trade and the capital spending that supports it is no.1 priority. The Chinese also have the cultural propensity to save rather than consume. Turning around an export led economy to a domestic one given the above is unlikely to happen quickly. Domestically they tend to throw bodies at issues moreso than capital and it is the capital investment that drives the heavy end of minerals volumes.

]]> By: tom http://www.dailyreckoning.com.au/resource-prices-2/2008/06/20/comment-page-1/#comment-27388 tom Sat, 21 Jun 2008 06:47:26 +0000 http://www.dailyreckoning.com.au/?p=2849#comment-27388 "Furthermore, it seems to me as though copper is currently consolidating prior to launching higher. In case you are confused as to how copper can rise given the nasty housing recession in the United States, you should take into account the fact that China uses up roughly 30% of the world's copper and its economy is expanding at roughly 10% per annum. In other words, physical demand for the metal is robust in Asia and other parts of the developing world." China, India, Vietnam and a host of other developing Asian economies are hell-bent on reining in inflation at the moment (not to mention a host of other infrastructural issues in the financial system). This means tightened monetary policy, diminished liquidity and reduced investment incentives (including greater regulation of FDI and speculation). That oughta wallop those commodity prices. You can probably tell I've got nada tied in resources. "Furthermore, it seems to me as though copper is currently consolidating prior to launching higher. In case you are confused as to how copper can rise given the nasty housing recession in the United States, you should take into account the fact that China uses up roughly 30% of the world's copper and its economy is expanding at roughly 10% per annum. In other words, physical demand for the metal is robust in Asia and other parts of the developing world."

China, India, Vietnam and a host of other developing Asian economies are hell-bent on reining in inflation at the moment (not to mention a host of other infrastructural issues in the financial system). This means tightened monetary policy, diminished liquidity and reduced investment incentives (including greater regulation of FDI and speculation). That oughta wallop those commodity prices. You can probably tell I've got nada tied in resources.

]]> By: Vivienne http://www.dailyreckoning.com.au/resource-prices-2/2008/06/20/comment-page-1/#comment-27332 Vivienne Fri, 20 Jun 2008 22:40:32 +0000 http://www.dailyreckoning.com.au/?p=2849#comment-27332 Prices for resources are becoming higher as they are becoming scarcer and more in demand. We live in a small planet of finite resources but with a growing global population, all competing for food, power and prosperity. Prices are higher, exacerbating the race to destroy more the ecology in the process. How many years can this keep going? Our ecology upholds all life, not just of biodiversity - which is fast being eradicated! Prices for resources are becoming higher as they are becoming scarcer and more in demand. We live in a small planet of finite resources but with a growing global population, all competing for food, power and prosperity. Prices are higher, exacerbating the race to destroy more the ecology in the process. How many years can this keep going? Our ecology upholds all life, not just of biodiversity - which is fast being eradicated!

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