China Could Leave USA in the Cold and Shovel Dirt on Us, Too

China has been buying up vast quantities of natural resources, from oil and gas, gold/silver/copper to rare earth minerals. They seemed to be the first nation to recognize just how important the intrinsic value was of the rare earth minerals.  China now shows a reluctance to export much of them, exporting less and less, and it is a fraction of what the USA and other countries must have for both defensive and offensive military weaponry to perform. That is not to say the USA has no store of rare earth minerals of it's own, just not in the quantity that is needed. (Too busy funding Acorn, and spending $2.1 million to relocate Hamas supporters to the USA, plus 80,000 new Muslims, all with a stroke of Obama's magic pen, not to mention his 2 day trip to India at a cost of $2Billion A DAY.)  His priorities definitely seem to be anti-America, but then, the results of last nights mid-term elections were a strong repudiation of Obama's "any other country before Our Own policies."

Other disturbing news is that China has been quietly buying up more gold/silver than they had previously made known publicly.  What could this mean for the price of gold/silver and the future of the US Dollar?  Gold will continue it's rapid rise and all economic data, signs, stats, and figures point to a lower dollar.  If China decides to begin dumping her US$ denominated investments (Treasuries), the fall of the US$ would be swift and steep.  That would perhaps encourage temporary buying in the US Stock Markets, as indices usually rise when the dollar slides because foreign currency buys more.  At some point, it would quickly become a zero sum game, as too many other nations hold large amounts of US$ denominated Treasuries which would be taking large losses also.

The S&P 500 broke out of a technical trendline on the upside on the Bollinger Technical Line for the first time in 23 years which has some traders giddy.  Other technical analysts and traders and economists are not so quick to join in, as their technical patterns do not confirm this at all, and in fact, none are following suit to confirm what they consider a fluke.

Major economists and analysts feel that the euphoria from the mid-terms could lift the market today and maybe tomorrow, but with important Government figures due out Thursday and Friday, everyone is trying to be cautious.  No one wants to get caught on the wrong side of a tidal wave.