Monday, July 25, 2005

The China Revaluation and the Environment

Primer on my investment outlook

Hussman gives an interesting take on the China revaluation.

While many of us were taught in introductory economics that the 1970's inflation was due to “oil price shocks” and money growth, it's very hard to actually find this in the data. With all apologies to Milton Friedman, inflation is not a monetary phenomenon but a fiscal one – it occurs always and everywhere when fiscal authorities create government liabilities in excess of economic growth.

Never thought of this myself :-)

Also two companies on the ASX
1. Making paper from waste banana bagasse
2. Using Nanotech to duplicate photosynthesis for Solar Energy

I have an eye on these companies and will take a position after monitoring their listing and price progress. Highly Speculative..


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