Australian and debt free gold miners, Asian growth stock plays,

How will the Canadien dollar fare in the forex devaluation cycle and where are the debt free Canadien miners? and are there any low debt AUSSSIE gold miners anyone likes out there?- these are my questions to everyone.

Excerpts from an article:

"My last article warned about the real cause that will send these markets into retreat in the end – domestic and sovereign interest rates..........

.........We also called the beginning of the sovereign interest rate rises within the debt cycle recently and have stated for some time that the Fed would have to raise rates to ATTRACT INVESTMENT.The Fed cannot print indefinitely to finance this debt because they do understand the hyperinflationary ramifications if they do......

.........Normally interest rate rises are bad for gold because cash can become more attractive than gold if the real interest rate (difference between actual interest rates and true inflation) turns positive.A real investment return on cash will drive investment into this asset class..........

.........In other words the theory is that if interest rates are above the inflation rate you are better off earning a return on cash for a greater proportion of your portfolio than holding a higher proportion of gold which generates no interest as such.The greater the spread the better the return the more you weight cash upwards within your investment portfolio.........

........This causes investors to lighten up their bullion holdings and re-weight more toward cash.This is during “normal” investment conditions however and this rule of thumb does not apply at this time......

.......Rising interest rates usually means that business is perceived to be able to absorb increased borrowing cost and or is in fierce competition for borrowings due to strong growth. The theory is that Central Banks raise rates in this circumstance to cool growth and make the increasing level of economic activity more sustainable.........

.........At this mature stage of the global debt bubble however rates are rising at the sovereign level first (except in a very few cases) in response to a negative reason.This is vastly different to rate rises due to strong growth.........

........This is all about attracting capital – competition for money of a different kind.This is about a desperate attempt to patch over a low or non existent level of growth......

......Governments will try to sustain low domestic rates for a time however this cancer will eventually spread through the global economy to corporate and domestic rates crushing any chance of growth in future until the various bubbles (including the debt bubble) have been unwound..........

.........I am not saying that this will happen immediately – it will come in stages over the next year or two as patch after patch is applied to the system firstly to cover over the emerging sovereign issues.All currencies face the same problem because they are fiat, so where do you go?The forex savvy big players will swap from one currency to another and continue to hold gold as a hedge........

....They will head out of the USA, the UK and Europe.Money will also flow towards gold stocks and Asian growth plays.......

........The Australian dollar looks set to drop briefly under the foreign exchange conditions looming (UK and Euro) because it is seen as an exotic currency despite our fantastic sovereign risk rating.For the local gold miners this is all fantastic news looking forward.A surging gold price and a falling Australian Dollar will create a very high AUD gold price.Debt free gold miners could reap bonanza profits.......

FROM:

http://news.goldseek.com/GoldSeek/1267453419.php