vegas, page-23

Rudders

Believe it or not, some so called experts truely believe that if you owe people an unthinkable amount, then they will be too scared to recall their debt and that has now proved true. They will even do anything to keep you afloat. Can't collect from the dead. US owe China about $1.5 trillion and the Chinese not long ago set up a committee to look into redeploying that debt somewhere else BUT came out with a statement last month that it would not be wise to do that after all because everyone will loose in the end. No difference with the share market - one in, all in and one out, all out. With the debt, all the debt holders are watching each other and if one call in the bond, every bond holder will do that and guess what, US got no money. If you have money, you don't need to borrow in the first place. Simple, just go to Google and key in "trillion" and in page two under US National Debt Clock, a minute ago it was $9,114,955,487,537.38 and the bloody debt goes up about $200 million every hour. Go into refresh every few minutes and that will scare the s... out of you.

Again those experts somehow also have the idea that if you accumulate enough raw material, you will bring down the price of that item, especially so with crude oil with the US and copper and iron ore with China. Somewhere along the line, they miss the fact that there is no over production of these raw materials at the moment. Not necessary to hoard them if there is an over supply. The more you hoard them, the more shortage is created and the price will go up in the end. They need to keep using these in a big way to keep their industries churning along anyway.

There is so much attention concentrating with China at present that alot of experts totally overlooked India. Together with China, they have more than half the world's population. India is now fast catching up and Australia will be sailing along quite nicely for a long time to come.

Once into production, HGO should do well imho. Majority of the investing public prefer to put their money in companies that are already producers. The waiting period to make/loose money is shorter. The perception is that it is safer. It is only old fools like me investing heavily in exploration companies. I enjoy the long wait so that I can whinge along the way. But there is no difference between producers and explorers. The management is more important. Also what is in the ground for HGO/ESG. It is all risk and a big gamble. I am prepared to loose just enough to sell my mother-in-law but as long as there is still food on the table for the family, then fine. If all come good with HGO/ESg, I promise new cars for my daughters-in-law and other goodies for the rest of the family. My mother-in-law's ashes can come along too as I was covered in them at her cremation ceremony. Damn bloody third world crematorium which shower the whole neighbourhodd with free fertiliser. More scary than the US foreign debt or the volatile share market. God bless her - buddha in this case.

Cheers