Philip Madden lawyer global comment

Why Australia is buoyant and well placed for the next shocks in this GFC

Resources growth, infrastructure construction, technology advances, business opportunities and optimism have served Australia well since the last quarter of 2007 which is when history will place the commencemnt of this world crisis cycle when major financial institutions began to distrust each other's credit commencing a squeeze which sent many to the wall and a re-assessment of asset values which is not over yet. If anyone wants direct no nonsense guidance about business, investment, companies and opportunity in Australia come to www.maddenslaw.com

Sydney small and medium business is ticking over nicely but nervously....

As I move around the city of Sydney from meeting to meeting, all report that small and medium size businesses in my clientelle are ticking over nicely but directors and managers are nervously sniffing the breeze to assess what kind of economy unfolds. The brief excitement in the spring residential market in this city seems to have subsided with fewer sales going through conveyancers. And of course, the big end of town is content with funds raised in their rights issues and the outcome of the Federal government stimulus package despite volatile share prices and shareholders sniping at directors' remuneration in recent round of AGMs.
I suspect that assets will reach their true value early in the new year at somewhat lower levels despite what the share market may do in the coming months.

Conflicting information but a big bet on the US economy & the US$ by Buffett

« What next? Roubini says we have time before next catastrophe

What can it mean? Gold price goes higher & the Sage buys a railroad & Roubini predicts crash as US$ goes up

By philipmaddenlawyerconsultantaaastrategic

4 Nov. The IMF gold 200 tonnes of it went to the Indian central bank despite the Chinese offer to buy it. Who bought the the other 203 tonnes? No doubt the Chinese will keep buying on market. Would that mean the price must go higher to US$1200 per oz  or is the market flooded? Now piece that with Warren Buffett’s bet on the US economy recovering quickly by buying a huge railroad based in Texas.

  If Buffett is right the US dollar appreciates as the US economy comes good then Professor Roubini’s prediction that the international carry trade & its asset bubble borrowing USdollars to buy assets shall crash with some considerable havoc. Interesting times are not over! Never dull is it?

And from Europe: “But the surge in gold prices may be a thing of the past soon. Gold prices are set to fall to $800 or below $800 levels thanks to the decision of the G-20 countries allowing the International Monetary Fund (IMF) to sell 400 tons of gold reserves in the open market to raise funds for its global projects. ‘ – Commodity Online.

”Gold prices are set for a big fall in the next two to six months mainly because of the IMF gold sale. There will be abundant supply of gold in the market in the coming months thanks to the release of 403 tons of IMF gold. Moreover, with stock markets looking up after the big falls, gold prices are likely to fall to $800 or below $800 levels,” bullion analyst Mark Robinson told Commodity Online.