Land Price Bubbles in China and India

Mar 04 Global Inflation Pressure Rising: How to Profit

-------- Original Message --------

Subject:	Re: Land Price Bubbles in China and India
Date:	Fri, 4 Mar 2011 08:49:13 -0800
From:	Jas Jain

Re: Land Price Bubbles in China and India

Jas: "It is literally free money. And when the free money evaporates… China and India are primed for a metro areas land price bust rivaling that of Japan."

 

JS: "Jas, since the same speculators who are benefiting from the "free money" inflated asset RE prices are using that "free money" to drive up commodity prices, what does that mean for commodity prices like gold, oil, silver, rice, etc?? And conversely what does it mean for the demand of US dollars and US

treasury bonds? Thank you."

 

You are welcome. Since I fully expect a depression (or "great recession"!) in China and India once the land price bubble (the biggest feeder of growth in the economy because people can easily borrow against it, or sell it at inflated prices) bursts the rest follows. Commodity boom would turn into bust and govt. bonds in most sound currencies would appreciate. I know that people like Peter Schiff think that USD is a trashy currency, but they are wrong. USD is very under-valued compared to most paper currencies of the world. Just wait for the next Big Mac index to appear in July. I have gone from being long Swissie for years to net short! Gold is the only currency that I am long. I can hardly complain about the purchasing power of my long-dated UST holdings (going up 15% a year for the past several years, because I do hedge when bonds are up a lot!).

Jas

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