July 2, 2010

Good Morning:

U.S. Unemployment, Investible Gold, Baltic Dry Index, The Yuan

U.S. Unemployment

A WSJ article this morning titled '

· 42% of those looking for jobs are unsure they will find a job in the next six months that matches their skill level, up from 32% in Q1 2010, and of those searching for a job 55% have been unemployed for 6 or more months.

I think it is hard not to take this data as very negative in the context of all the 'double-dip recession' talk that currently is front and center in the news. Seriously increased U.S. consumer spending is the key to meaningful U.S. economic recovery - or so I believe - and that won't happen if the U.S. population remains seriously unemployed where the employed are experiencing reduced - or not increasing - wage rates.

The June 'U.S. Jobs Report' just came out ( I suggest you look at the chart. Food for thought indeed.

Baltic Dry Index

An article Wednesday titled ' I think this is an index worth paying attention to. I suggest you read this short article, which discusses detail imports by China, Chinese steelmakers, and exports from South America.

The Yuan

I suggest you take the time to read ' The Art of High Return, Low Risk Investing'. I think this article covers many relevant bases when reaching the conclusion spelled out in its title. I added the following comment to this article:

Good and logical article. Seldom do commentators speak to the 'different ideology' and 'human nature self-interest' of China, the U.S. and all other countries as they develop their respective strategies. This article deals with those things by implication.

In my view anyone that thinks China is going to allow its currency to strengthen seriously until it is China's own best interest for that to happen needs to 'give their head a shake'.