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- Gold bull run.
Makes sense – the dollar gets a supply boost, the contrarians panic and buy gold. People are saying that it’ll get as high as $2,000.
I stand with Warren Buffett on this though. Why would you buy unproductive assets? Buy shares. Those too have prices that move with inflation…
- The iPhone 5 goes on sale today.
Link: QUICKLY SHORT STOCK!
There are videos of very excited Australians who are hopped up on caffeine after 17 hours in queues and are very very excited but a little inarticulate.
Bitches be crazy. But really, unlike Harry Potter books, I’m not sure that the iPhone distribution will be as smooth. The empirical evidence is not on Apple’s side, I would say.
Here’s the AAPL share price:
My call is that the hype will drive the price up later today – and over the weekend, everyone will “discover” the glitches and the supply shortages, and we’ll have a small reversal next week.
But maybe that’s just me.
- The US defense treaty with Japan covers disputed islands.
So, like, this would be a slightly awkward situation. Nothing like an island dispute between Japan and China causing an international incident for the US.
When the islands under discussion are included in a defence pact with Japan. In the US’s own words, they want to:
“focus more on issues associated with the maintenance of peace and stability and less on the particular details of this very complex and challenging matters”.
Obviously. That’s the story I also use when I’ve been screwed by the small print. “Big picture, guys. Let’s focus on the big picture here”.
- South Africa’s Reserve Bank leaves key lending rate unchanged.
Well after months of much-lowering-in-mining-output, it’s not that surprising the SARB governor Gill Marcus is concerned about growth. Or inflation from higher petrol and food prices.
That’s the kicker here. This decision was just as much a decision not to lower interest rates (to promote growth) as it was a decision not to raise interest rates (to fight inflation). Stalemate.
- US Senate criticises Microsoft’s tax avoidance.
Link: oh really.
There is much tsking at transactions with tax haven subsidiaries that resulted in tax savings.
But criticise away – because tax avoidance, last I heard, wasn’t illegal. At the very worst, you can argue that it’s “unpatriotic”.
But I, along with Mitt Romney, say: if the government is going to be spending much money on policies for people that do not pay tax, then that just feels unfair.
That’s all for now.
Have a good day.