This week's notable quotes (or the "if you read anything this week" quotes) come from Chuck Butler's daily "Pfenning for your thoughts". To sign up for the Pfenning, check out http://www.dailypfennig.com/
On China
"I told you all last year, that China was shifting away from the export driven economy to a domestic demand economy, and while the change is nascent at best, it is going on."On Norway
"Norwegian leaders are contemplating the implementation of a "cap" for the krone VS the euro, much like the Swiss did back in September last year ... So, I guess it doesn't pay to have the best surplus of any AAA rated nation in the world. no debt, and an economy that will most likely expand 3.25% this year, and a banking sector that's very strong ...Gold avalanche: We like Norway, and think it's an economy worth looking to invest in. Here is something to get your engine started: http://finance.yahoo.com/news/norway-etfs-safer-european-play-143459790.html
On Treasuries
"I suggest you sit down for this one. Did you know that the in 2011, The Fed purchased 61% of the total net Treasury obligations that were issued?"Gold Avalanche: All we can say is daaaaannnnnng -- so much for foreign countries owning most of the US' debt. Looks like a majority of it is falling on the backs of US citizens. In other news, the Swiss national bank has imposed a floor on the amount the Euro can devalue itself against the Swiss Frank, and that floor (1.20) is currently being challenged. Chuck writes the following:
On Sweden
"What will the SNB (Swiss national bank) do should this cross really, truly breaches the floor level of 1.20? That's a good question, kids. but for all of you at home keeping score, you might want to take a note here, because Chuck thinks that should 1.20 be really, truly breached , the SNB will intervene, and sell francs and buy euros. That is if they have a strong backbone."(see our comments below)
Chuck Bulter is president of Everbank World Currencies. To learn more about their services, please visit http://www.everbank.com.
Gold Avalanche: On Sweden, we would add "and if the SNB is near sighed enough to actually think that devaluing their currency is a good idea. It's not, but they might be. Quite frankly, in our view, purposefully devaluing a strong currency in the current world economic climate is not only fear-driven, but a short-sighted at best, stupid at worst, definitely ill-gotten, borderline insane and quite possibly certifiably insane thing to follow through with."
*edit - but hey, maybe it will work ... our fingers are crossed for them ... because that's about all any of us lowly spectators can do. That, and buy gold for both prudence and protection against the ill-begotten plans of central banks.
