Next Leg Up $1336, page-370

Central Banks around the globe are playing dangerous games, printing money and increasing their debts to stimulate their economies and when they fail, recession will hit hard similar to GFC.
The new credit in China has surged in March because China is trying hard to meet its target of GDP between 6.5% and 7%, ignoring the rise of its debts from 160.5% of GDP to 250%.
THAT IS VERY SCARY
The increase in the new credit in March and the weak US dollar explained the recent rise in commodity prices and we all know without any significant changes of oil fundamentals for example.
This recent increase in new credit and the Chinese debts have led someone like Soros to ring the alarm bell about an era similar to 2007 before the GFC.
Soros Says China's Economy Looks Like the U.S. Before the Crisis

http://www.bloomberg.com/news/artic...-debt-fueled-economy-resembles-u-s-in-2007-08

The new credit increase has exposed the Chinese banks who let their provision coverage for bad loans 'a key swing factor in earnings reports" fall close to the regulatory minimum.
China's Biggest Banks Stand Exposed After Profit Buffers Eroded

http://www.bloomberg.com/news/artic...nks-stand-exposed-after-profit-buffers-eroded

Of course when the new credit is provided you would expect transient increase in the economic numbers and you will produce a headline like this:
Earliest China Economic Data Show Recovery Gathers Pace in April

http://www.bloomberg.com/news/artic...omic-data-show-recovery-gathers-pace-in-april

THIS HAS NOT MADE ANY IMPACT ON THE INVESTORS AND CONFIDENCE REMAINS LOW.

Heaps of economic data this week that will shape the next move for gold and the first week of May will see investors running down the mountain.

The anticorruption campaign in China, although it is good long term and I am huge supporter of this. It has led to increase in the capital outflows and not surprising that Australia which housed the most 10 Chinese top official on the corruption list , is benefitting from that and the property prices are increasing as a result.

Aussie policy changes should lead to correction in property prices which have climbed in big cities to 55% over the last 7 years.
Off the topic: buying a house is better than an apartment.
Buying in high growth area or near private schools is better for capital growth, IMO.

Finally, there is only one way when you get to the top of the mountain, and that is down.
CORRECTION IS COMING
There is one way when you are at the bottom of the mountain, and that is up and up.
Gold and BDR will be UP in my opinion.

Good Luck tomorrow.

Cheers,

Sydney